Life support no more for Jacksonville's Gateway mall

[thelakelander]

I think tufsu1 is saying if Stage decided to expand in Jax, it would probably not be the Goody's brand since Bealls (Outlet) is already established in this market.

[Wacca Pilatka]

I remember when Gateway seemed close to landing both the Magic Johnson Theatres and a large discount store anchor (I think it was called U.S. Factory Outlets)?  What happened to both of those deals?

I wonder if a store like Ollie's Outlet could work there too.

[FSBA]

Looking back, probably the largest mistake over the last decade was not closing the deal with Magic Johnson to bring one of his movie theaters to the place.  Now with RCM's theater in business, that ship has sailed.

I don't see how the theater at RCM affects a potential theater at Gateway anymore than the AMC at Regency does. The Northside certainly could use more than just 1 medium sized movie theater.

[thelakelander]

^Theaters aren't exactly cash cows.  That industry has been hit hard by growing home entertainment options over the last couple of years.  Anything new will simply eat into an existing theater's declining market base.

I remember when Gateway seemed close to landing both the Magic Johnson Theatres and a large discount store anchor (I think it was called U.S. Factory Outlets)?  What happened to both of those deals?

I'm not 100% sure but I think a part of what killed Magic Johnson's plans is that he typically desires to own a large chunk of the real estate his developments are involved with.  Also, the development of Publix was chosen in favor of Johnson's 2000 plan.

[thelakelander]

From some old FTU archived articles:

Theater owners mostly look at population and competition when selecting locations. They also typically build several theaters in a region to take advantage of economies of scale, meaning products bought in larger quantities are usually less expensive, said Clint DeMarsh, president of NATO of Florida.

Developer Carlton Jones, managing partner of the Gateway Shopping Center, said the last Northside movie theater closed about 30 years ago across the street from Gateway . Area residents have driven to Regency Square or Fernandina Beach ever since, he said.

Jones said the Northside can absorb more than one theater.

"It will do a lot for the community," he said. "I think it will be great for a start."

In 1998, DeMarsh's Fort Lauderdale-based Muvico, a theater building company, shelved plans to build a 10-screen movie complex near the Jacksonville International Airport.

Three years later, a proposal by former NBA star Earvin " Magic " Johnson 's development company to build an $8.5 million movie theater near the Gateway Shopping Center was scuttled in favor of a Publix supermarket at the site, Jones said.

"It was something we wanted to do," he said, "but everyone said the food store was something we really needed."

Movie relief for Northside Wallace Theaters company plans to build multiplex at River City Marketplace
Florida Times-Union, The (Jacksonville, FL) - Saturday, October 22, 2005

In 2000, Johnson Development proposed building an $8.5 million movie theater, a $1.3 million TGI Friday's restaurant and a $350,000 Starbucks coffeehouse. It was hoped to have been the centerpiece for redevelopment in the city's Northside, but it had fizzled out by the spring of 2001.

When asked what might be different this time around, Walden said that in September 2001, Johnson Development entered into a partnership with Canyon Capital. The resulting $300 million entity is a "much better capitalized" real estate operation, Walden said, one that should stand a better chance of success.

Also, the new Canyon- Johnson partnership hopes to acquire real estate, rather than just place stores in centers that are owned by others.

"In past operations, we've been wearing the hat of tenant," said Bobby Turner, co-managing director of Canyon- Johnson , in the January issue of Shopping Centers Today, an industry publication. "But we've realized there's as much money to be made owning real estate."

Walden said that Canyon- Johnson now generally looks to "acquire major real estate assets -- entire shopping centers, entire malls, and housing, of course."

Presto, Magic 's interested again Plan for theater in Northside on rebound
The Florida Times-Union - Tuesday, October 8, 2002
Author: Gregory Richards, Times-Union business writer

[thelakelander]

Regarding U.S. Factory Outlets, it looks like they could agree on a financing package where US Factory Outlets wanted incentives to come.

The chairman of U.S. Factory Outlets Stores Inc. said his New York-based chain remains interested in Gateway Shopping Center, but as we've reported, the deal is in flux.

"We are very interested in Jacksonville and we have a couple other things that are being presented to us . We would like to go to Gateway , but we need to have the ducks in order, and they're not. From our point of view, we are ready, willing and able, and it has to be two ways," said Fred Raiff, U.S. Factory Outlets chairman.

The city also might be asked to play a further role in the deal, but that, too, remains in question. "We would like U.S. Factory Outlets to apply to the city for assistance, and they wanted Gateway Mall to apply to the city for assistance," Wood said.

Wood explained that Gateway owners already have landed federal, state and city assistance for renovations and that "if any tenant wants improvements, we would like for them to go in their own name."

Outlet store still interested in Gateway
The Florida Times-Union - Saturday, June 2, 2001
Author: Karen Brune Mathis, Times-Union senior business writer

I'd say, the ship has sailed on Gateway as in enclosed indoor retail mall as well.  Jones killed that by first subdividing the two anchor spaces (meaning there's nothing to attract foot traffic into the enclosed retail section) and then relocating the remaining retailers to pave way for the medical mall experiment. Plus, the retail demographic design trends and shopper's preferences have changed since the heyday era of the enclosed mall.

[I-10east]

Much as I'm not a fan of Publix, I think that it was the right option over the movie theater. I've lived in the Brentwood area for quite a while so I'm not talking blindly; To me a movie theater in that part of the Northside screams fights, drama, etc, just my opinion from experience. There's a reason why the hood doesn't have amenities like decent suburban areas. Just keeping it real un-sugarcoated.

[thelakelander]

Gateway has something like 700,000 square feet.  Design wise, both could have been accommodated, so a part of me doubts that being the primary reason, despite the FTU report.  I don't buy into the idea that the "hood" can't have decent amenities.  That's a mentality we have to change if we ever want to see downtown revitalized.  Ultimately, downtown will only be as successful as the urban neighborhoods around it.  Btw, the Johnson chain doesn't really exist anymore.

Magic Johnson Theatres are a chain of movie theaters, originally developed in 1994 by Johnson Development Corporation, the business holding of basketball player-turned-entrepreneur Magic Johnson, and Sony Pictures Entertainment through a partnership with Sony-Loews Theatres. A 1998 merger between Sony-Loews and Cineplex Odeon Corporation caused Magic Theatres to become part of the new Loews Cineplex Entertainment Corp. Currently the chain's former locations are owned by AMC Theatres after Sony-Loews was acquired by the cinema giant in 2006. They are branded Magic Johnson Theatres still however they are solely controlled by AMC now, only using the Magic Johnson Theatres name.

The focus of Magic Theatres was to build first-rate multiplexes in urban communities, bringing high quality facilities and technology, as well as job development, encouraging local economic growth. While Magic Theatres are patterned after the Loews Cineplex Entertainment model, they retain the Magic name and focus on urban markets. Each complex is around 60,000 square feet (5,600 m2) with multiple concession areas, 10 to 15 screens with SDDS stereo sound, stadium seating and a capacity of 3,200 to 5,000. After building the Magic Theatre in Harlem, multiple businesses followed suit including Old Navy, Disney, and HMV.

Earvin "Magic" Johnson, Jr., is no longer actively involved in the management committee, strategic planning, operations and public relations.

There are two multiplex theatres in, or near, major cities of the United States of America, namely in areas which are predominantly African-American (hence the branding) and previously were underserved by modern cineplexes. The venture dates back to 1995, when the Magic Johnson Crenshaw 15 opened in the Crenshaw district of Los Angeles, California.
The first theater opened, the Magic Johnson Crenshaw 15 was closed in 2010. It was renovated and reopened by Rave Motion Pictures.

The only remaining original theatre still opened is the Harlem 9 theatre in Harlem, New York. The theatres in Cleveland, Ohio (Randall Park 12) Houston, Texas (Northline 12), and Atlanta, Georgia (Greenbriar 12) were all closed by AMC due to lack of profitability. The Magic Johnson theater in Largo, Maryland (Cap Center 12) is still open and operated by AMC.

http://en.wikipedia.org/wiki/Magic_Johnson_Theatres

[I-10east]

I don't think that Brentwood is a very diverse neighborhood; People always talk about wanting to have diversity in white neighborhoods, well you need sort of it in black neighborhoods too. Brentwood's past history of why everything closed down (movie theaters etc) certainly justify having any concerns of another movie theater.

[Wacca Pilatka]

Thanks for all of the historical info Lake.

I'm sorry there's not a theatre there to serve the urban northside, but if it came down to the choice of that and a Publix, a supermarket does seem like more of a necessary amenity.

[thelakelander]

I don't think that Brentwood is a very diverse neighborhood; People always talk about wanting to have diversity in white neighborhoods, well you need sort of it in black neighborhoods too. Brentwood's past history of why everything closed down (movie theaters etc) certainly justify having any concerns of another movie theater.

If you want more economic diversity in neighborhoods that have suffered from white flight like Brentwood you've got to reinvest in them.  They aren't going to turn around for the better as long as the public schools suck, the public ROW isn't maintained, etc.

[BackinJax05]

I don't think that Brentwood is a very diverse neighborhood; People always talk about wanting to have diversity in white neighborhoods, well you need sort of it in black neighborhoods too. Brentwood's past history of why everything closed down (movie theaters etc) certainly justify having any concerns of another movie theater.

Meanwhile, Arlington is right behind Brentwood. 

[Ocklawaha]

I think tufsu1 is saying if Stage decided to expand in Jax, it would probably not be the Goody's brand since Bealls (Outlet) is already established in this market.

Stage Stores, Inc. brings moderately priced, nationally recognized brand name and private label apparel, accessories, cosmetics and footwear for the entire family to small and mid-size towns and communities across 40 states. With over 800 stores operating under the “Bealls”, “Goody’s”, “Palais Royal”, “Peebles” and “Stage” trade names, the Company believes that it has developed a unique retailing concept and niche in these markets by offering a broad range of nationally recognized brand name merchandise with a high level of customer service in convenient locations.

I believe they are somewhat different in content and size, I am very familiar with Stage Stores as I was a regular at "Anthony's," which started in 1918 in Cleveland, Oklahoma. Anthony's was a slightly upper scale clothier that featured a lot of western and work-a-day lines. (Pretty amazing that Oklahoma produced this as well as the founders of Wal-Mart and Albertsons, TG&Y, Homeland, Sonic, Loves, EZ Go,  and all within about 100 miles.

[tufsu1]

^ well two of their brands, Peebles and Bealls, are very similar to Goody's

[thelakelander]

When is the time Goody's opened a new store in Florida?