Powers' growth comes with questions, concerns

Asked to size up Powers Boulevard’s retail potential a decade ago, developer Fred Veitch put it this way:

“It will be the next Academy Boulevard — better done,” said Veitch, of Colorado Springs real estate company Nor’wood Development Group, which has since built several shopping areas along Powers.

Until the late 1990s, Academy was Colorado Springs’ dominant retail corridor — with popular shopping centers and restaurants up and down the north-south highway, which stretches from one end of town to the other.

Academy remains a busy retail destination, especially north of Woodmen Road. But it’s been displaced by Powers, which has several newer and better designed shopping centers, easier access to retail areas and some stores not found on Academy.

But has Powers’ popularity come at Academy’s expense?

Central and south Academy were identified three years ago by city government officials as troubled areas because of empty storefronts, aging buildings and traffic snarls.

Over the past six to seven years, Best Buy, Men’s Wearhouse and Red Lobster have been among the parade of businesses that left central and south Academy in favor of Powers. The Rustic Hills and Rustic Hills North shopping centers at Academy and Palmer Park boulevards are nearly vacant, while The Citadel mall lost anchor department store Macy’s.

“No doubt about it,” Patrick Kerscher, a principal with Landmark Commercial Group in Colorado Springs, said when asked if Powers’ success has hurt Academy. “Just look at Palmer Park and Academy, where Rustic Hills and Rustic Hills (North) were. They (anchor stores) packed up and all moved out to Powers. Sports Authority is the only one left, and I promise you they’re looking out on Powers.”

The community traditionally has had a laissez-faire attitude when it comes to development; property owners who meet regulatory requirements are allowed to develop, said Les Gruen, a longtime commercial real estate expert who heads the Urban Strategies planning firm. Yet, retail development along Powers and deteriorating conditions along Academy raise questions that deserve the community’s attention, he said.

“My personal opinion is you need to think very, very carefully about balancing public property rights and community well-being,” Gruen said. “It’s not easy to balance all the different aspects involved. These are not easy questions.”

Colorado Springs Mayor Lionel Rivera, who three years ago gave a major speech in which he targeted central and south Academy — among others — as troubled areas the city must address, disagrees that Powers’ successes have led to Academy’s failures.

Retailers locate stores based on demand and demographics, and have the right to use their property to its highest and best use, Rivera said. It’s no secret there’s demand along Powers, where household incomes are higher, he said.

“The houses are still there and the people are still there,” Rivera said of south and central Academy. “But they (retailers who have left) must have found better value for their investment.”

Something else to consider, Rivera said: Had city officials rejected retail development along Powers, Colorado Springs sales tax collections might have suffered as retailers leapfrogged the corridor to locate in unincorporated El Paso County.

Mark Useman, a broker with Sierra Commercial Real Estate in the Springs and who specializes in retail, echoed Rivera. Retailers go where there’s demand, more appealing demographics and good access, he said. Changes take place in every city, not just Colorado Springs, and changes don’t just affect one part of town, such as Academy Boulevard, he said.

“Things change and sites change and demographics change and retailers decide if they’re not doing well, they’re going to close a site and move it or they’re going to have to deal with lesser numbers,” Useman said. “Towns evolve, and that’s what’s happened with Academy Boulevard.”

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