Instead, Mills' vice president of development Larry Costello greeted the audience and apologized for Jacobsen's absence. According to Costello, a horse-riding accident left Jacobsen homebound and unable to attend the conference. Moving directly into his presentation, Costello discussed only the details of the company's 108 N. State St. project.
The development, formerly known as Block 37, will feature approximately 400,000 sf of retail, entertainment and dining offerings; 200,000 sf to 450,000 sf of office space, a 200- to 300-room hotel, a 200- to 300-unit residential tower, and a CTA transit station providing service to Chicago's O'Hare and Midway airports.
During the 20-minute presentation, there was no mention of the Mills Corp.'s recent troubles, which to date include: a third-quarter 2005 earnings report in which NOI fell 5.2% and FFO plunged 53.6%; the discharge of 17 executives following an announcement that Mills needed to restate financial results back to 2000; a USB report that KanAm, Mills' Germany-based JV partner may liquidate its investment in Mills properties; and the filing of class action law suits by three law firms.
When Costello finished his review of the project, he opened the floor up for questions--specifically relating to the development. With no word from the audience, ICSC chairman Charles Grossman took the podium for a state of the industry overview.
After reviewing the most recent figures released by ICSC, Grossman said shopping center owners could expect a steady demand for space, largely spearheaded by retailers developing new concepts, such as Gap Inc.'s Forth & Towne and Chico's Soma, as well as the expansion of European retailers coming into the market, such as H&M.
In regard to mid-market grocery-anchored centers, competitive pressures will come from "intense competition form premium supermarkets," Costello said. "There's a new breed of supermarket making the regular supermarket a dull chore." What's more, Costello said, is that these premium concepts, such as Whole Foods, are not only providing a local connection with the community, they are also moving quickly into anchor spaces.
Costello predicted that the decline in auto sales, the cooling of the housing market and the amount of consumer debt will keep the retail industry "moderate but sustainable" in 2006.
The conference wrapped with a three-hour deal making session. ICSC's Idea Exchange is a collaboration between the International Economic Development Council and local partners, including the American Planning Association/Chicago Metro Section, Illinois Development Council, Retail Chicago-City of Chicago Department of Planning, and the Metropolitan Planning Council.
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