Quote:
Originally Posted by Johnland
Wow. You mean this type of thinking is just now taking root!! The T has been around for 25 years. I would think this would be at the top of planning lists.
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We like to pretend we're not a major urban area sometimes.
http://www.post-gazette.com/pg/07191/800506-34.stm
Whole Foods keeps looking for more space
Plans may include expansion, new site
Tuesday, July 10, 2007
By Teresa F. Lindeman and Dan Fitzpatrick, Pittsburgh Post-Gazette
Five years after Whole Foods Market boldly began selling organic produce, tofu hot dogs and soy milk in the city's embattled East Liberty neighborhood, concerns are growing that the small site may be cramping the natural foods grocer's style.
Solutions to the squeeze could range from expanding on the existing site to assembling another set of properties nearby to hoping that new locations elsewhere in the region will ease the pressure on the retailer's only area site.
"We have no intention of leaving East Liberty," said Sarah Kenney, Whole Foods spokeswoman. But at just over 30,000 square feet, she noted the existing store is smaller than the company's new, larger stores, which can exceed 50,000 square feet.
"I think it goes without saying that we are in close quarters right now in that store," she said. "There's so much more that we'd like to do if we had space."
It wasn't long after the Centre Avenue store opened in the fall of 2002 that talk began of a second Whole Foods location in the Pittsburgh region. Shoppers seemed to drive from all over to battle for spaces in the store's parking lot.
A few years later, the retailer settled on a proposed shopping center planned for a site in Collier along Interstate 79. The location remains on the company's Web site as a 68,000-square-foot store in development but the project appears stalled. "We don't have any plans to go to that particular site at this time," said Ms. Kenney.
She confirmed Whole Foods still would like to put a store in the South Hills, although she declined to specify a location.
South Hills Village mall may be under consideration. Bethel Park planner Jerry Duke said officials from his town and from neighboring Upper St. Clair met late in the spring with representatives from the mall's owner, Simon Property Group, about possible interest from Whole Foods, among other retailers.
The meeting was general and preliminary, said Mr. Duke. The groups talked about the need for a traffic study before any new development takes place. Parking also could be an issue. Mr. Duke was not given a timeline and he has not heard from Simon since the original meeting.
Simon declined comment.
If Whole Foods can get a second local location, that might bring in new shoppers as well as give some of those who drive into town an alternative.
But even as the hunt for a South Hills site continues, so does the push to develop creative options for the East Liberty location. The real estate community seems to be aware of the situation, said Ms. Kenney, who said a number of people have approached the company with options.
One sticking point will be the grocer's commitment to East Liberty. The neighborhood, and the city, has been incredibly receptive, said Ms. Kenney. She said the grocer, a blockbuster from the start, hasn't shown any signs of slowing. "It seems to increase in its popularity."
Expanding at the existing site would be difficult, said Mark Minnerly, director of real estate development for Mosites Co., the company that brought the natural foods grocer to East Liberty in the first place. He said Mosites has been looking at ways to help Whole Foods get bigger but that may require using some of the creative techniques that made the existing shopping center work in the first place.
Mosites took several years to assemble several properties along Centre Avenue in a project that involved collaboration with local development groups and city economic development officials. Since its arrival, the grocer has been seen as a factor in spurring additional development in the area. "Whole Foods has turned out to be a great anchor tenant," said Mr. Minnerly.
The grocer has proven to be an adventurous tenant as it expands around the country. In other cities, Whole Foods has opened in office buildings and in structures with condominiums on top. The residential/grocery combination is being tested in Pittsburgh, too, at the Giant Eagle Market District store farther up Centre Avenue, a project that received city tax assistance.
Mr. Minnerly declined to discuss the specifics of Mosites' creative thinking but real estate sources said the developer has cast its eye on several properties across Centre Avenue from the existing Whole Foods. If the right combination could be pieced together, it might be possible to do a new store with residential units on top.
"That's one likely permutation," said Rob Stephany, director of commercial development for East Liberty Development Inc., a local nonprofit working to improve the neighborhood. But, he cautioned, "It is just so early."
One consideration, he said, could include a surface parking lot owned by the Western Pennsylvania chapter of the American Automobile Association, the Parental Stress Center and a loft condominium project from Crossgates Realty. "I think we would all like to see stronger development in that corner of the district," Mr. Stephany said. "Is there some way of reshuffling the puzzle pieces so that everybody wins?"
Making the numbers work on any mixed-use project could be difficult. Even if East Liberty is growing, Pittsburghers might not want to pay the rents that would be required to make such a development economically feasible.
Even the idea that Whole Foods might be feeling restless is enough to raise concerns among those involved in the community.
"I think it's absolutely critical" to keep Whole Foods in East Liberty, said Todd Reidbord, president of Walnut Capital Partners, a Shadyside real estate firm pursuing the redevelopment of an old Nabisco plant a few blocks away along Penn Avenue.
Mr. Reidbord, who had heard rumors Mosites needed more space for its prized tenant, said he is not interested in Whole Foods for the project titled Bakery Square at Eastside, a 6.5-acre combination of office, hotel space, residential, restaurants and retail. "We are not out there to poach anybody else's tenants."
He credited the grocer's success with making possible his ambitious real estate project. "Whole Foods has been an absolutely beautiful anchor for the whole neighborhood."
It's no surprise that other developers might be interested in luring the grocer away, said Paul G. Brecht, executive director of the East Liberty Chamber of Commerce. "That parking lot is always packed."
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(Staff writer Laura Pace contributed to this story. Teresa F. Lindeman can be reached at
[email protected] or at 412-263-2018. Dan Fitzpatrick can be reached at
[email protected] or at 412-263-1752.)