"We were trying to get a regional shopping mall in our city, and we decided that we needed to go to where the developers congregated," Smith explains to GSR. With a population of 72,000 people and a regional draw of 350,000 people, Meridian had some impressive demographics to share at the show. "We went from booth to booth telling developers that we would work a deal if they would agree to build a mall in Meridian," he recalls.
By attending ICSC, Smith and the City of Meridian was able to interest 11 developers. Six developers visited the city, three competed for the deal, and Chattanooga, TN-based CBL & Associates Properties Inc. won the opportunity to develop a regional mall. The City of Meridian offered tax increment financing to the REIT, which opened Bonita Lakes Mall in October 1997.
"The mall was a tremendous success for us, and it wouldn't have been built if not for our visit to ICSC," Smith says, adding that since the mall opened, Meridian's sales tax growth has expanded by 50%. Moreover, he and other city officials have recruited other retailers through their annual ICSC trips including Wal-Mart and Lowe's. "There's been a real rebirth of retail in Meridian," he notes. In fact, sales tax revenue for 2006 is 14% ahead of projections.
This year at ICSC, Smith will call on several big-box retailers as well as some smaller inline tenants. "We have three different retail complexes under way in Meridian, so we'll be making direct calls to get retailers interested in the projects," he says.
Lebanon, TN is another city that has benefited from its city leadership attending ICSC, bringing Prime Outlets to the southern city. City liaison Sue Akins-Sienes has been going to the show in Vegas for 11 years often mans Lebanon's booth there.
Akins-Sienes says that one of Lebanon's former mayors initiated the city's involvement in ICSC. "It all started with Prime Retail and their decision to put an outlet center in Lebanon," she notes. "Our mayor attended the event and saw the opportunity to promote the city."
Selling the Community
For city officials like Akins-Sienes, ICSC offers the opportunity to target developers and retailers. She tells GSR that since the city of Lebanon has been attending ICSC, its sales tax revenue has increased 200% to more than $5 million.
Akins-Sienes has noticed that more and more people from the public sector have started to attend ICSC. "I think it's because of ICSC's alliance program, which helps the retail real estate industry reach out," she contends.
Many city and county officials feel that attending ICSC sends a powerful message to retailers and developers. "Going to ICSC really reflects an image of Arlington Heights as a great place to do business," says Charles Perkins, Director of Planning and Community Development for Arlington Heights, IL, a suburb of Chicago. "It's extremely important for Arlington Heights to be proactive with business attraction and retention. Attending the show and providing face time with retailers and developers is of utmost importance."
Perkins says that he spends most of the time at ICSC trying to attract retailers to the community and working to market the retail space that is available. "We work with existing shopping center owners so we can assist them in their recruitment efforts," he explains to GSR.
Joey Durel, the mayor and parish president of Lafayette, LA, feels that the time and money spent attending ICSC is well worth it. This year will be his second time to visit the show, but his city is already reaping the benefits of his first visit last year. "We hope to make an announcement about a new project at the show--a $300 million development that is the direct result of our visit last year," he says.
Durel is upfront about his reasons for attending ICSC: "I am going there to sell my community," he says, pointing out that a city has to be aggressive to get the best retail projects. "To get the new lifestyle-type shopping centers, communities really have to step up," Durel tells GSR. "ICSC allows us to show retailers and developers that we're committed to retail development."
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