Plans crash for SpeedPark to locate in Pittsburgh Mills
NASCAR SpeedPark, one of the much anticipated anchors for Pittsburgh Mills, the $285 million shopping, dining and entertainment complex that opened in Frazer in July, isn't coming to the mall after all, officials said this week.
The loss comes as the mall's owner, Arlington, Va.-based Mills Corp., struggles with more serious financial problems.
While day-to-day operations at Pittsburgh Mills apparently have not been affected by its parent's troubles, failure to land NASCAR SpeedPark is a setback for the massive enclosed mall, which has been billed as a "destination" center breaking the mold of traditional regional malls.
Patrick Dowling, spokesman for Burroughs & Chapin Co., Inc., the operator of NASCAR SpeedParks, said the company had informed Mills officials that they decided to scrap the project in May 2005 and had asked them to stop marketing the project. "For whatever reason, they continued to promote it was coming."
"We took a hard look at the market, and we think it's a great market, but we tend to do well in tourism areas," Dowling said.
Mills Corp. officials could not be reached to comment Thursday on Dowling's statement.
Preliminary site work had begun for the NASCAR venue, which was expected to occupy a 40,000-square-foot area in the SportsStreet section of the mall. It would have brought electric car racing, miniature golf, bumper boats, a climbing wall and other amusement activities.
"Despite our best efforts, NASCAR SpeedPark will not be part of the SportsStreet area of Pittsburgh Mills," said David Macdonald, the mall's general manager on Wednesday. "A number of factors prevented the project from moving forward, but we are aggressively pursuing other entertainment offerings for Pittsburgh Mills that our customers will enjoy."
Burroughs & Chapin, a Myrtle Beach, S.C.-based developer of tourism and entertainment facilities, has developed SpeedParks at several other Mills' projects.
Financial problems at Mills include delaying its report on 2005 year-end earnings and lawsuits filed by disgruntled shareholders. Mills has hired two Wall Street investment advisers to explore options for the sale of part, or all, of its assets.
Its troubles have local public officials and industry observers paying attention to see what effect they could have on operations.
"We're watching, but beyond that, there's not that much concern," said Lori Ziencik, Frazer Township supervisor and secretary-treasurer.
Ziencik said officials "enjoy their relationship with Mills Corp. immensely" and hope there are no changes. The township's offices are in the Mills complex.
At the same time, they are well aware that it's not unusual for shopping malls, or entire companies, to change hands.
Retail analysts have said it's doubtful that Mills, whose 42 malls total about 51 million square feet of retail space, would sell the entire company.
Speculation is that selected assets, such as its 18 traditional shopping malls, might be attractive to companies such as giant mall developer Simon Property Group, of Indianapolis, said Rich Moore, an analyst with KeyBanc Capital Markets in Cleveland. Simon owns Ross Park, South Hills Village and Century III malls in this area.
Mills also has 22 so-called "shoppertainment" centers, such as Pittsburgh Mills, which also feature a variety of outlet and entertainment tenants.
One concern is whether the company's financial problems may distract it from efforts to manage or continue development of some of its major projects, Moore said.
So far that has not been the case at Pittsburgh Mills, insists Macdonald.
"It's business as usual," he said, adding that the company has been pleased with the operations and occupancy.
A walk-through of the main indoor mall (known as the Galleria at Pittsburgh Mills) this week found about two dozen vacant spaces -- out of a total of about 140 -- that could house additional tenants.
That level of vacancy for a new mall is not usual, Macdonald said. The company expected some fallout, particularly among temporary tenants recruited for the recent holiday season.
The project has nine other major anchor outlets, including Kaufmann's, J.C. Penney, Linens N' Things, Borders Books and Music, Dick's Sporting Goods and a 16-screen Cinemark Theater that includes a commercial iMAX screen, Macdonald said.
Tenants that made their debut in Pennsylvania at the mall include anchors Sears Grand, the Sears version of a Wal-Mart Supercenter; fashion retailer H&M; and Lucky Strike Lanes, a combination bowling alley and restaurant/lounge.
In addition, Mills has successfully sold all of the two dozen or so outparcels at the site, including spots where a number of restaurants, and major stores such as Wal-Mart and Sam's Club, are open and drawing crowds, said Joe Anthony, vice president of acquisition and development for Zamias Services Inc.
Zamias, the Johnstown-based co-developer of the Mills complex, late last year purchased a 20-acre parcel with plans to develop an 180,000-square-foot center that will include about 10 tenants, including big box retailers.
"This is a great project, and we continue to be excited about it," Anthony said.
The main mall has been very busy on weekends, but it's less vibrant during the week, Ziencik said.
She's heard some concern about the absence, so far, of more unique-to-Pittsburgh stores and some better-known national retailers.
"It may not have filled up as quickly as we would have liked, but it's not our business to run malls," Ziencik said.
A number of shoppers on Wednesday voiced mostly favorable comments, including LuAnn Durci, of Bettendorf, Iowa.
"I think it is just fantastic. The Valley has needed something like this forever," said Durci, a native of West Tarentum, who was joined by Laurie Prazencia, of West Tarentum, on a visit there.
One frequent shopper who felt the selection should be improved was Carley Green, of Upper Burrell.
"I think they need more women's clothes and teen stores," said Green, who found a local car dealership sales area there to be somewhat out of place.
