Editorial: Retail realities

Local officials might prefer that it be in a different location, but a proposed development on South Iowa is at an appropriate site and would have many financial benefits for the city.

With a positive recommendation from city-county planners and the absence of any tax incentive requests for their project, developers of a proposed retail center on South Iowa Street will present a package that will be difficult for local officials to reject.

At least one city commissioner has argued that the large development southeast of the intersection of Iowa Street and the South Lawrence Trafficway will throw the city’s retail market out of geographic balance. It’s no secret that city officials would like to see more retail and hotel development near the new Rock Chalk Park development, but there’s only so much the city can, or should, do to force development in select locations.

The request to rezone the South Iowa property and gain other approvals for the project will be reviewed Monday by the Lawrence-Douglas County Planning Commission. Additional approvals also will be needed from both the city and county commissions. Before that happens, a number of issues are likely to be raised.

Retail zoning already has been approved for three large city tracts: one in North Lawrence, one near 23rd Street and O’Connell Road and, the largest plot, near Rock Chalk Park. Rather than approve additional retail development on South Iowa, some officials would rather push development to one of the other sites. That’s fine, but that’s not where developers and retailers — the people who are putting up the money and taking all the risk — want to be. As illustrated by Menard’s, Dick’s Sporting Goods and other recent projects, retailers want to locate close to other retailers. In Lawrence, that’s South Iowa. The planning staff report agrees that the proposed site near the SLT is suitable for the type of development that is being proposed.

Some officials also have expressed the fear that too much retail is being built in Lawrence, but the planning staff says the local retail market is growing and it’s unlikely that the new project would increase retail vacancy rates in the rest of the city.

The proposed development is the kind of project that most cities would welcome with open arms. The project manager already has announced the names of several national retailers that would locate in the center, which expects to attract 32 new businesses, including eight restaurants and one hotel. The developers estimate the project will add $1.1 million a year to the city’s sales tax revenue by 2017 and $2.1 million by 2020. Because the developers say they won’t seek any tax abatements, the development also will be a significant addition to local property tax rolls.

The only down side to this development seems to be that at least some city officials would rather it was located somewhere else. People who live in east, west or north parts of Lawrence probably would agree that additional shopping closer to their homes would be nice. But the retail developers have another idea of what works for them and the businesses they represent.

The city has done what it can to encourage development in other parts of town. The zoning is there. The welcome mat is out. However, the reality is that, short of providing costly financial incentives for developments in those areas, the city must either accept the judgment of the developers about the best location for their project or reject a project that could trigger a significant increase in retail traffic in Lawrence, along with millions of dollars of tax benefit to the city.

At least at this point, the decision seems like a no-brainer.