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<br />regional banks like US Bank, TCF and M&I; and coffee concepts like Starbuck's Coffee and Caribou Coffee.
<br />• Another retailer coming to the metro is Salad Creations, a restaurant franchise concept that has committed to a downtown
<br />Minneapolis skyway location. It will also look for additional sites.
<br />• Express fitness-type concepts are extremely active. Chains like Snap Fitness and Anytime Fitness are opening small, no-
<br />frills workout facilities in retail centers that are convenient for people. They operate on a 24-hour-a-day, card-key locking
<br />system. Anytime Fitness has approximately 80 locations in Minnesota, including 20 in the Twin Cities. Snap Fitness' web
<br />site says it has more than 130 locations open or planned in Minnesota.
<br />• Existing neighborhood centers are starting to see more renovations and repositionings, and many communities want to
<br />see pedestrian-friendly, mixed-use, urban-type redevelopments rather than a prototypical freestanding building or strip
<br />center. The aging Hi-Lake Shopping Center at Lake Street and Hiawatha Avenue in Minneapolis is an example of a
<br />renovation. Wellington Management Inc. purchased the 7.91-acre retail site, located immediately west of the Lake Street
<br />light rail station, and completed a $3 million renovation, including a major facelift, new landscaping and new and increased
<br />lighting. Wellington essentially made the center more accessible to pedestrians and LRT riders. Also, a new Aldi grocery
<br />was built at Lake Street and 21st Avenue, a former Burger King site that sat vacant since a fire destroyed the building a
<br />few years ago. The redevelopment also includes the addition of housing.
<br />• Another partial renovation occurred at Miracle Mile Shopping Center, off Highway 100 and Excelsior Boulevard in St. Louis
<br />Park. Hoigaard's, an outdoor equipment and apparel retailer and longtime St. Louis Park retailer, relocated to the Miracle
<br />Mile Shopping Center, occupying the west side of the center after completing renovations to the interior and exterior of
<br />that space.
<br />• Also, developer True North Investments undertook a repositioning at Minnetonka Crossing at Crosstown (Highway 62) and
<br />Shady Oak Road in Minnetonka. The project includes 12,000 sq. ft. of retail, which includes a Caribou Coffee and a Jimmy
<br />John's Gourmet Subs with 12,000 sq. ft. of office space.
<br />• The Cedar Grove redevelopment, slated for the intersection of Highways 77 and 13 in Eagan, is on hold. It's been reported
<br />that the city of Eagan is considering ending its development agreement with developer Schafer Richardson and bringing in
<br />anew developer for the $250 million redevelopment. The city took action after the developer failed to submit updated site
<br />plans in November. Shafer Richardson told the city that the existing proposal was not feasible under current market
<br />conditions, chiefly the sluggish condo sales. Eagan owns more than half the property in the slated redevelopment area-
<br />including Cedarvale Mall-and is working to obtain the remaining sites. The area eventually will have transit facilities at
<br />both ends, and plans call for the development of an urban village, including retail shops, entertainment venues and offices,
<br />and hundreds of condos and townhomes.
<br />• A number of sit-down restaurants are looking to "stay in the game" and compete with quick-serve, fast-casual eateries, so
<br />they are pushing up their sleeves and retooling. They are changing their menus by adding take-out items, lowering some
<br />of their prices, and offering curbside delivery or drive-thru windows for convenience. Examples include Applebee's, Chili's,
<br />Ruby Tuesday and TGI Fridays.
<br />• Grocery store °wars" continue in neighborhood and community centers. Target and Wal-Mart's super center concepts-
<br />offering full grocers-are competing head-to-head with traditional grocers and taking a bite out of their profits (especially
<br />since there is no longer the stigma associated at shopping at discounter Wal-Mart). Some traditional grocers, which can't
<br />compete on pricing, are attempting to draw shoppers by offering nicer environments and convenient elements like bigger
<br />delis, fresh flowers and home meal replacement. There are causalities, however, from this intense competition.
<br />• Kowalski's Market announced it is closing its Lakeville store on January 15 as the result of low sales and big-box
<br />competition. It will pull out of its 20-year lease at the new Lakeville Crossing center. The store, which opened just 15
<br />months ago, is facing fierce competition from Cub Foods, Rainbow Foods and SuperTarget. There also are plans for a
<br />second Cub Foods store in the city.
<br />• Roundy's Supermarkets announced it will close three Rainbow Foods stores in the Twin Cities; two are in community
<br />centers and one is in a neighborhood center. The stores are at 1801 County Road 42 West in Burnsville, 1643 County
<br />Road 62 in Roseville and 1698 Vierling Drive in Shakopee. Roundy officials say they no longer fit within the future plans for
<br />Rainbow's retail store network.
<br />• Rick's Market, 1605 County Rd. 101 N. in Plymouth, is closing, as is Jubilee Foods at 90th Street and Penn Avenue in
<br />Bloomington.
<br />• Meanwhile, some grocers opening new locations are faring very well. Festival Foods opened earlier this year at 98th Street
<br />and Lyndale Avenue in Bloomington-formerly Byerly's space-and reports strong sales.
<br />The Outlook
<br />Neighborhood centers will continue to see more redevelopment and repositioning, especially as good sites become even more
<br />difficult to find. However, projects will take longer to develop because of more discriminating city officials, vocal neighborhood
<br />http://outlook.uproperties.com/PagePrinter.aspx?InstanceID=b5dc3 874-23 ec-45bc-9750-47... 3/7/2007
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