North DeKalb Mall close to bringing in Costco, after all
Hendon Properties, LLC, which bought the 66.6 acre North DeKalb Mall [website] [overview pdf] from Cadillac Fairview Corp. for $25 million in 2003, held a "Public Participation Meeting" at Shamrock School Tuesday evening to share its plans for the struggling mall (near the corner of Lawrenceville Hwy and N. Druid Hills Rd, a few miles NE of Decatur -- originally built in the mid 60s, and expanded by 206K sq. ft. to its current configuration with retail space of 628K sq. ft. in 1986.).
This old blogger can remember when it was built [it opened on 7/29/1965], and being happy to have another mall just outside Decatur, with Columbia/Avondale Mall [now a Wal*Mart] on the other side of town, which opened in 1964 as the first enclosed mall in Georgia, and Belvedere Plaza, on the other corner.
A crowd of 125-150 people showed up, necessitating the movement of the meeting to the auditorium/gym. Most were from the surrounding neighborhoods. All but a few (5%) were white (just giving you the facts you can't read in the fishwraps).
The Costco deal has been agreed to in principle by both parties, but is dependent on some rezoning (the rezoning meeting will be 6/9) and working out some contract details. [Charlie Hendon warned that the deal could fall through for various reasons in the time required to close it.]
The Costco will be located in the area between the AMC Theatres and Burlington Coat Factory, displacing the enclosed court on that end of the Mall. [Teens using the enclosed area as a hangout and adults using it as an inclement/hot weather exercise area will not be too happy to hear this.]
Costco plans to have a gas station near N. Druid Hills Rd, which requires rezoning of some property owned by Hendon from NS to C-1 by the DeKalb Planning Commission.
UPDATE: A 5/29 post in the Deal Watch Blog notes the rezoning difficulty to allow a Costco gas station:
But it’s not that easy. Just ask Hartman, Simons, Spielman & Wood partner Theodore J. “Ted” Sandler, who’s advising his client, Hendon Properties, on how to remake North DeKalb Mall. Hendon has been negotiating with Costco Wholesale Corp. for a considerable period of time about opening a store at North DeKalb Mall. A thicket of legal and business issues have prevented the two sides so far from inking a deal, although Hendon is still trying.
One matter deals with the mall’s unusual zoning situation. The vast majority of the property, which is located in unincorporated DeKalb County, is zoned for commercial development, Sandler said. But a section is zoned neighborhood-commercial. Costco wants to be able to sell gasoline at North DeKalb Mall, and it wants at least part of its building to be located in the area zoned neighborhood-commercial. Gasoline sales are forbidden on property zoned neighborhood-commercial.
“We’re just trying to correct that zoning category,” Sandler said. “That’s the main motivating factor at this time.”
Two alternate designs are under consideration. One will retain the enclosed mall concept. The other, called the "de-mall" plan, will open up the mall, creating a market street environment (which is in vogue these days).
The de-mall plan will include a total of 730.5K sq. ft. of floor space.
See images of the two alternatives in the continuation.
Assuming the deal goes through, construction will be begin in Summer 2009 (possibly a quater earlier), and Costco will open Summer 2010 (possibly a quarter later).
Once the Costco deal is a done deal; Hendon will actively pursue other merchants to join the anchor and anchor merchants (Costco, Burlington, Macy's, and AMC Theatres). Charlie believes Costco will offer the pull needed to attract other attractive merchants and make the mall more attractive to more shoppers.
Observation on the Approach and Reception
Charlie Hendon and Steve Spiegel seemed very open and straightforward in answering questions, and the crowd seemed generally pleased with the plans.
The public reaction was markedly different than a few years ago ['04-'05], when plans were announced to build a parking deck for Costco over the flood plain area to the southwest of the mall -- through which the South Fork of Peachtree Creek flows. A page at the Clairmont Heights Civic Assocation gives a complete chronology of that, if you're interested. At some point, Charlie apparently got the message that you can't f mess with the flood plain. [The Saturn car dealership on the other side (which filled in part of the flood plain area) should never have been allowed! Like the Mason-Medlock PATH, it was allowed by County commissioners despite STRONG protests and logical arguments by concerned citizens.] This plan involves no FURTHER encroachment into that area, and will, in fact, improve the quality of runoff water.
If you're REALLY interested, there are more details below the images in the continuation.
Charlie Hendon approved of this posting and was given the website URL, so the Hendon people (or their attorneys) can post any corrections via comments. If you were at the meeting, you are also invited to correct, clarify, or expand via comment.
FRIDAY UPDATE: GoDeKalb has finally posted an article about the Tuesday meeting.
In the traditional covered-mall plan, Costco would be in the area currently occupied primarily by the food court area (with a smaller food court being near the AMC Theatres). Hendon would build the wall to the east of Costco. Costco would build and own its building:
Why Costco couldn't simply use the existing high roof is something to ponder, but Costco's business, and not ours.
The de-mall plan would open up the mall, making it more like the Edgewood development:
Regardless of which overall mall plan Hendon goes with, the Costco store will be 152K square feet total, with 143K sq. ft. in the main building:
Hendon is requesting the rezoning of this area, in part so Costco can have a gas station:
This would be the 8th Costco in Metro Atlanta, and only the third close to I-285, making Costco in convenient driving range for the Metro Decatur area (anywhere within 6 miles of the Decatur Square):
In moving into the Metro Decatur area, Costco will be taking on Wal*Mart and Sam's Club locations in easy driving range. Apparently, Costco is not intimidated.
More details, if you're REALLY interested:
Some thought has been given to a possible name change, to something like "Market Square at North DeKalb Mall." This name was tried after the major renovation in 1986, but most continued to refer to it simply as "North DeKalb Mall" so the old name was officially reinstated.
Macy's currently wants Hendon to do major upgrades of its store as part of the deal. Hendon cannot justify the cost of the improvements Macy currently wants. Negotiations are ongoing.
There will be two parking decks. Neither will infringe upon the natural drainage area SW of the mall.
Planning parking decks seems like the height of optimism, given the current average percent usage of the acres of parking area.
As part of the upgrade, Hendon will install a "water quality system," so no trash will float into the stream system, as it does today, as illustrated by some color photos a neighbor brought to the meeting. (When the mall was built in the 60s, there were no such requirements).
In antcipation of Costco coming in, Hendon has strategically not made improvements to the mall, and is, frankly, a bit embarrassed about its current condition. But, even if the Costco deal falls through, for some reason, Hendon will upgrade the mall.
Some attendees said they'd love to shop at NDM more, but the selection of merchants was not that enticing at present, so they drove to other malls, such as North Lake.
Costco is expected to double the sales of the mall. This will make it much more attractive to other merchants, who use sales of current stores as a key criterion in their decisions on location of new stores.
Hendon will continue to encourage locally-owned smaller stores.
When Hendon has approached the county about road improvements in the area (including improved pedestrian traffic), the county has replied that the area is not "bad enough" to justify spending money on it. Priority for such projects go the the most blighted, crime-infested areas.
Hendon does not expect the Sempler development further up N. Druid Hills to have a significant negative impact on NDM. It was concerned Costco might jump to that area, but Costco has hung in with NDM.
Should the Costco deal fall through for some reason, before it is finalized, Hendon will pursue other major merchants.
An electronics chain and a bookstore chain are interested, if Costco comes in.
Hendon personnel will be attending the convention of the International Council of Shopping Centers (ICSC) in Las Vegas, which everyone who is even remotely related to shopping centers attends. It will be looking for potential merchants for NDM.
Hendon is aware of the potential Convention Center and Hotel in the mall katy-corrned to NDM (where Cub Foods was). It even considered locating Costco there when the resistance to it in NDM was strong.
This is a relatively expensive deal for Costco, vs. its typical developments.
Developers think in terms of square footage of stores, not number of stores, since stores vary so much in size. There will be lots of square footage for smaller stores in addition to the 4 anchor stores in either plan.
Hendon is willing to hold as many community meetings as neighborhood groups desire. It is also willing to develop an e-mail list to keep people updated. There is a NDM website, but no website for updates on the development. Hendon didn't want to "spill its candy in the lobby" before the Costco deal was done.
Hendon has ideas on how to avoid the "cruising" problem Atlantic Station is now experiencing should it go with the market street de-mall plan.
Existing stores will remain open during construction. As new areas are completed, they will be moved there.
The de-mall plan will include some residential (mixed use). Some attendees saw this as a plus to avoid cruising and other issues.
Hendon provides the current anchors with extensive demographic data. It cannot speak for how they use it to provide products and services best suited for the area.
The information booth has been closed down in anticipation of the changes. (An attendee regretted the loss of the nice and helpful lady.)
The development might be done in phases.
Hendon will take all possible steps to minimize disruption in the mall and on surrounding roadways during the construction process.
The Bank of America between the mall and the Lawrenceville Hwy is not on land owned by Hendon, and just would not be impacted directly by either plan.
Additional Reading:
Mary Swint| Broadcast Atlanta | March 2007
Optional opinionation:
If mixed-use developments (stores on first floor and high-end apartments/condos/townhomes above) were built around the perimeter of the large parking lot, what is now a large asphalt wasteland could become a vibrant township in and of itself, with the residents keeping it healthy by reporting any shady activity to the DeKalb police. The flood plain owned by Hendon could be treated as a park area. Maybe the township could even get its own zip code, as Atlanta Station did.
It's exciting to think about the potential, which is high because of the great location. But, like Charlie said in the meeting, "the devil is in the details."
I say bring it on. I can't wait! I would prefer the mall concept instead of the de-mall version. It still gets hot and stormy in Georgia and the mixed-use will fade away as people tire of walking, while traffic pokes along over endless speed bumps and cross traffic. Kinda like the Edgewood concept brought up in the blog.
Posted by: EGinMedlock | 05/14/2008 at 06:40 PM
De-mall now! We want a Trader Joe's, not the same old mall concept from 40 years ago. EGinMedlock is clueless is he/she thinks mixed use will go away. Utterly clueless. Yeah, people are tired of walking after doing so, for how many of thousands of years??
Posted by: De-Mall Now! | 05/15/2008 at 12:05 AM
Wow, a mental giant resorts to name calling. Great idea De-mall. We need another Toco Hills but with less parking.
Posted by: gocostco | 05/15/2008 at 09:06 AM
Yes, de-mall!! What a great idea! Create something unique for the area, instead of trying to re-invent the same tried (and tired) format. I've seen the results of the de-malled Winter Park (FL) Mall; the entire area rebounded incredibly (and somehow those folks get out of their car, despite the heat). Mixed use is another plus ~ this would reconnect the property with its neighbors. How exciting to drive down NDH and see something like this to the south.
Posted by: ZJ | 05/15/2008 at 10:11 AM
I am in favor of the de-mall plan. It is a successful concept that I don't think is going to fade away. This type of mixed use can't be compared to Toco Hills, and say what you want about Edgewood, it is always bustling, the merchants are successful and it has done great things for the property values in that area. As to the comment about nearby Wal-Marts and Sams, I don't think they will have any effect on a Costco at NDM. Most intown people I know are traveling to Costo at Perimiter instead of Sams, and Target rather than Wal-Mart, and it will be very convenient for those who make a trip out to the Dekalb Farmers Market every weekend. I'll be happy either way they decide to go, I am just happy to see progress in the area. Now lets get the empty car lots developed!
Posted by: SLPS | 05/15/2008 at 11:22 AM
I like the de-mall option much better. It will look friendlier and greener. And perhaps it will make Sembler lose interest in overdeveloping Briarcliff and NDH. EG, have you noticed -- the mall parking lot is riddled with speed humps now. Decreasing large plattes of asphalt will curb summer heat and make rain runoff less toxic.
Posted by: LindaLou | 05/15/2008 at 07:03 PM
gocostco comparing this plan to Toco Hills? Come back to earth.
Hendon said this was being brought along similarly to The Forum in Gwinnett off Peachtree Parkway, http://www.forumdevgroup.com/peachtree.html, which is pretty darn cool, with great landscaping and mini-parks.
Let's have something different. As De-Mall Now said, let's de-mall!
Posted by: Need upscale | 05/15/2008 at 08:06 PM
I'm with Need Upscale. I've been to The Forum (forced there by teen daughter, and is IS pretty darn cool. We don't have anything like it near here, and it invites upscale merchants (I've never seen a Trader Joe's that was not free-standing). Unless something goes very awry with DK zoning and planning (always a distinct possibility), the sort of residential that goes with that concept is middle-class upscale.
One sticking point with the de-mall plan is that it requires changes to Macy's and Macy's is demanding that Hendon pay for all changes (several million $$). This is outrageous and obstructionist. Macy's says that the NDK store is their biggest seller in the area - more than N'Lake. This is hard for me to imagine, given that they don't have anything I want,and I've never seen it crowded, but perhaps it's because it is a smaller store, and their overhead isn't as much...
Posted by: upscale II | 05/30/2008 at 11:30 AM
I would love a Trader Joe's, and Costco isn't too bad-certainly better than WalMart -- hallelujah.
Yes, upscale, I find it impossible to believe Macy's is doing better here than at other area malls. The macy's here is terrible!
I just hope this really, actually doesn't impact the drainage and the nature preserve.
Rose
Posted by: Rose | 05/31/2008 at 01:33 PM
I feel that the addition of COSTCO would be wonderful for this area. I have lived in this area for more than 40 years and I'm glad to see some improvements and concern.
Posted by: I. J. Budreckas | 05/31/2008 at 10:10 PM
Even tho Rue de Leon is closing its doors for good, the custom framing shop (Rose Squared)is moving to a larger more efficient space just one block away. JD Isaacs, the owner for the last 6 years has leased the prime spot between Baran's Music Store and Jules Cafe (formerly Gooseberry Event Planning). The new store will include a new gallery, frame shop and teaching space where he will teach watercolor classes and drawing classes. The doors should open the first week of July, 2008.
Posted by: Rose Squared Custom Framing | 06/01/2008 at 08:38 AM
Below is a link to an interesting article in todays Daily Report, detailing some of Hendon's roadblocks in this development.
http://www.dailyreportonline.com/Editorial/News/singleEdit.asp?origin=NewsAlrt&individual_SQL=6/5/2008@23805
Posted by: SLPS | 06/05/2008 at 12:44 PM
Awesome! If this did look anything like The Forum then it would be a huge boon for the area. I look forward to all this coming true (cross fingers). As for Costco not taking away from Sams... well, I disagree. There is a Sams at Clairmont and 85 and also one on Mountain Ind. Blvd. We have a membership at Sams and would drop it for a closer store. No way I'm driving to Perimeter or Gwinnett Mall area to shop at a warehouse grocery store.
Build it and we will come! Currently, Northlake is really our only option. North Dekalb is kind of yucky, but maybe not for long.
Posted by: sayso | 06/10/2008 at 08:35 AM
Does anyone have any updates on the plans for a Costco at North DeKalb Mall? Is the project still on? Do they have a start date for construction, and a tentative opening date? It will be fantastic to have pancake batter in aerosol cans (www.batterblaster.com) within a short drive from my house.
Posted by: Lee Coursey | 10/06/2008 at 03:54 PM
Heard the hangup was the aerosol pancake batter, Lee. Costco insists on carrying it, while the County Zoning Board wants to protect Waffle House business.
Seriously, I've seen no updates, but haven't been looking for them either. It does seem like a lot of time has passed.
I'll browse around for news on it tonight.
Posted by: Decatur Native | 10/06/2008 at 04:39 PM
I'm hoping someone invents 'breakfast sausage in an aerosol can' (spamblaster.com?) so I can have some with my pancakes.
Posted by: Doc Al | 10/07/2008 at 08:32 AM
Hey, Doc, if we can send a man to the moon and combine shampoo and conditioner, SURELY someone can combine pancake mix, butter, sausage, and what-have you in one spray can.
Looks like a golden business opportunity to me.
Incidentally, I checked and Costco does indeed stock the Batter Blaster, so we need to push for them to move in ASAP!
Posted by: Decatur Native | 10/07/2008 at 12:40 PM
Talked to a Costco rep at the Norcross Art fest. She indicated that Costco is not going forward with building in the current economic climate.
Posted by: just outside | 10/07/2008 at 11:11 PM
As of today, this posting is the 12th most popular referenced on my site for 2008. So that I credit the source appropriately, could you please send me your info as you would like it to appear in a communication at year-end? Thanks for a year of great civic contributions!
Posted by: Kim->CommunityRadar.com | 12/30/2008 at 04:37 PM
I think the Costco will be good to have. I grew up in Decatur and shoped at North Dekalb Mall for years and even worked in Rich's. It would be a wonderful asset. The area needs a facelift. I know that they built a Walmart in Decatur on Memorial Drive and it is bringing in other businesses. So maybe Costco would bring in businesses and more close in shopping without having to drive so far to shop.
J Collins
Posted by: CollinsJ142@bellsouth.net | 06/13/2009 at 01:24 PM