Q & A: Local real estate broker takes on revitalization of retail corridor

As a Colorado Springs commercial real estate broker for more than  25 years, Bob Cope says he wasn’t looking to make the jump to city government.

Three years ago, however, Mayor Lionel Rivera sought ideas from brokers and property owners on revitalizing South Academy Boulevard. Cope became interested; retail was his speciality, and some South Academy shopping centers were looking empty and beat up.

As a part of his involvement in South Academy, he learned that the city planned to hire someone to help lead a retail-enhancement program — working to attract and bolster the Springs’ shopping base. Cope was hired in March 2008, and now is a senior analyst for the program.

Upgrading the retail base is a big job these days. In addition to South Academy, South Nevada Avenue, South Circle Drive and other older corridors are having a tough time. Even newer parts of town have seen shopping center vacancies rise because of the faltering local and national economies.

Cope, 52, grew up in Pueblo. He graduated from Colorado State University in 1980 with a double major in finance and real estate. He came to Colorado Springs to work in his family’s commercial real estate business.

Cope still operates Cope Commercial Realty, but says he spends none of his city time on the business and avoids deals that might pose a conflict of interest.

Question: How would you characterize the current state of Colorado Springs’ retail market?

Answer: Getting better. Like the rest of the nation, retail sales in Colorado Springs are down from their peak in 2007. Over the last several months, retail sales have increased, albeit from low levels. My sense is that we have stabilized and we are in the midst of a slow but steady recovery. From my conversations with national retailers, the majority report that their Colorado Springs store sales have been better, on average, than their same-store sales nationwide. The majority are also bullish on Colorado Springs and are very open to expansion in our market.

Q: Adding stores, restaurants and other retailers typically is the domain of private real estate developers. Why does the city take a role in efforts to stimulate retail development?

A: The city relies on sales tax for over 50 percent of its revenue. Retail sales are critical to the city in regard to its ability to provide core services. The city loses millions of dollars each year due to citizens traveling to venues outside the city to shop, dine and entertain themselves. Quality, strategic retail development will stem some of this sales tax leakage. In addition, the retail industry is an important part of the overall economic vitality of the city by providing jobs, stimulating consumer spending and serving as a catalyst for development.

Retail development is also a quality-of-life issue. We need to provide the most desirable shopping, dining and entertainment venues to remain competitive with other cities as we compete for jobs.

Q: Given the terrible national economy the past 2½ years, and conditions that were out of the control of many local government officials and private developers, can city government have an effect in boosting local retail efforts?

A. Absolutely. On a day-to-day basis we work with retailers, developers and shopping center managers to address issues that will make their projects more successful. These issues include assistance with permitting, development plans, access, signage and utilities. Sometimes just making a retailer aware of our Retail Enhancement Program, and that we are business friendly and welcoming to development, makes a difference.

Q: The Colorado Springs City Council recently approved an urban renewal designation for the massive Copper Ridge at Northgate retail project, which will have the effect of enhancing its development. How do you respond to criticism that the Springs already has too many vacant storefronts and that Copper Ridge’s competition will create more?

A: Copper Ridge, as envisioned, will target retailers that are not currently in our trade area. By design, it will target retailers and shoppers typically associated with a Park Meadows-style regional shopping center. Other retailers that currently have multiple locations in Colorado Springs will continue to operate those stores and will open an additional unit in Copper Ridge. Retail vacancies for the most part are not caused by retail competition or by overbuilding. Retail vacancies are primarily the result of demographic changes in a trade area that make stores unprofitable. The fact is, high-income-household growth is occurring in the northeastern part of our city and retailers will follow those households. Choosing not to build those new retail venues will not save an unprofitable store in an entirely different trade area, it will only ensure that the city will fail to maximize retail sales, deprive our citizens of the most desirable retail opportunities and continue to encourage leakage.

Q: Three years ago, city officials began focusing on the need to improve South and Central Academy Boulevard and, in particular, to add retail in these areas. What’s the progress of efforts to add stores and restaurants in this corridor?

A: The city is currently conducting a comprehensive study of the Academy corridor. The study will include an extensive assessment of what is currently in place, and it will look at transportation opportunities and land use. Hopefully it will identify strategies and incentives for revitalization and redevelopment. The city is not waiting on the study process to act,  however. We are actively engaged with key projects such as The Citadel mall and Citadel Crossing, and the city partnered with the ownership of Mission Trace in order to secure a major tenant. We were actively involved in the process that resulted in Lowe’s purchasing their site in Citadel Crossing and we continue to work with Lowe’s to encourage them to break ground on that store. We have made contact with many of the major retail property owners in the corridor in an effort to identify specific issues that confront them and to provide assistance, if possible.

Q: In addition to Academy, Circle Drive and South Nevada Avenue were identified by city officials as troubled retail corridors. Has the city made any progress in boosting retail in these areas?

A: A portion of Circle Drive was recently identified as an area targeted for redevelopment, but that initiative has not yet really taken shape. Regarding South Nevada, the city has been working very closely with developers that have a serious interest in different projects in that corridor. The effort has been quite extensive and hopefully there will be some public announcements in the near future.

Q: Downtown Colorado Springs has long been a retail hub for the city. How would you characterize the health of downtown retail? Any chance we’ll see more traditional retailers downtown, as opposed to bars and nightclubs?

A: I would characterize the health of downtown retail as quite good. We have all seen continuous improvements to the downtown core with its streetscape and all of the interesting and unique stores, bars and restaurants. We continue to see various small retailers open, expand or relocate downtown. Recently, I have really noticed the impact that U.S. Olympic Committee employees are having on downtown, such as more crowded restaurants and more people on the streets. The city also recently entered into an economic development agreement with the Mining Exchange Hotel, which will add more vibrancy to downtown in 2011.

Everyone interested in downtown revitalization understands that the key to significant retail expansion is building more residential there, and those efforts will continue. Also, locating additional employers downtown will boost daytime population counts, which will support additional retail venues.