State-Journal.com - Parkside developer: "Flurry" of national retailers visit recently

Photo By Hilly SchifferBo Howell of Lifestyle Communities stands on the 30-acres of land that will become the residential section named, Riverford Crossing, in connection to Parkside Development. Riverford Crossing will have 29 buildings and 300 housing units along with a fitness center, clubhouse and a large swimming pool.

Parkside Development was such a potential hot spot in 2006 the city and county got into a fight.

The county accused the city of theft for quickly annexing the eastside property from the county, and threatened a lawsuit.

The controversy eventually led to a compromise in which the two local governments would equally share occupational taxes coming from new developments including Parkside.

Those were the days before the recession hit and commercial development took a major tumble before skidding mostly to a halt.

Kohl’s became one of the anchor tenants. Then Cattleman’s Roadhouse – a large steakhouse – joined them at the new shopping center off Versailles Road near Interstate 64.

There was a lot of talk and excitement that Meijer was coming. But it didn’t happen.

Instead Dairy Queen and Starbucks – already popular on the westside – opened new stores in Parkside near the entrance.

Frankfort native Scott Mitchell wasn’t around for the city-county feud. But today he makes frequent trips here from his home in Cincinnati to recruit businesses to the site.

A son of the late Charles T. Mitchell, a prominent CPA, Scott is vice president for development with Phillips Edison & Co., a partner now with M & W LLC at Parkside.

Although a dismal economy has hurt development throughout the nation the last two years, Mitchell believes better days are coming.

“We have had a flurry of national retailers visit our site within the last 90 days,” Mitchell said on Thursday.

“I am confident we will have four to five new retailers and a couple more restaurants in Parkside by this time next year.”

He spent Wednesday at Parkside meeting with several potential retail clients.

While drinking coffee at Starbucks Wednesday morning, Mitchell said a new residential development well under construction in the back of Parkside will be a tremendous addition.

Riverford Crossing has 300 upscale one and two-bedroom apartments in 29 buildings. The 30-acre residential site will also have a clubhouse, a fitness center, large swimming pool and dog park.

It’s owned by Lifestyle Communities of Columbus, Ohio, which also has Hamburg Farms in Lexington.

“We’re very good friends with Lifestyle Communities,” says Mitchell. “They have a great piece of property, and a high-quality product and amenities.

“It sets up nice for the entire development, not just ours but theirs as well, the mixed use – live, work and play. That’s very attractive to any retailer, having a thousand plus captive customers that are going by your stores every day. That’s very appealing.”

The commercial part of Parkside is about 45 acres.

Mitchell says Phillips Edison – a retail real estate company with 25 million square feet of neighborhood shopping centers across the U.S. – “has a lot of lines in the water,” and patience and perseverance will pay off.

In the development world two years ago, “you could borrow about as much money as you wanted,” Mitchell says. “It was like ‘Field of Dreams,’ build it and they will come. That’s not the case anymore.

“We’re not going to spec build without leases in place. We’ll just be patient. When we execute leases we’ll start construction.

“We’ve had opportunities to execute deals with retailers, but we want to execute the right deals and be patient and get retailers we have on our merchandising plan.

“We want Parkside to be unique and the best development in Frankfort.”

A 1975 Franklin County High School graduate, Mitchell, 52, earned a bachelor’s in history at the University of Kentucky and a law degree from the University of Louisville.

Mitchell says his mother, Jean Mitchell, in her 80s, is his harshest critic. On the top of her wish list is a Target and Bob Evans, Red Lobster and Chik-fil-A restaurants.

“I tell her ‘I’m trying my hardest,’” he says.

Those are on the top of his wish list, too, along with Best Buy and Bed, Bath and Beyond.

Bo Howell, director of sales and leasing for Lifestyle Communities in Lexington, says an upscale grocery and retail store like Meijer would be an excellent addition to the commercial section of Parkside.

Mitchell says he would love for Meijer to come, “and I’m an eternal optimist. But I just don’t know if that will happen.

“You’d have to be pretty daggone good to come in and compete with Kroger in Frankfort because their westside and eastside stores are pretty dominating.

“Especially in this economy you don’t want to venture in here and take on that battle. Meijer is 18 months to two years away before further expanding into a new market like Frankfort.”

Mitchell says he travels around the U.S. and recently ate lunch with a friend in Chicago who’s a Kohl’s corporate official.

“Kohl’s is more than satisfied with its store in Parkside,” Mitchell said. “They’re probably a million dollars in sales over projections. They’re extremely happy here, considering the economy.”

Mitchell also said Cattleman’s, Starbucks and Dairy Queen are doing well.

“We’re real pleased with what we’re hearing from them,” he said. “I encourage other retailers to call them.”

Construction is underway on a Tire Discounters store at a new entrance to Parkside on Versailles Road.

“They have 56 stores in Ohio, Indiana and Kentucky, and that’s where I get my tires,” Mitchell says.

Regarding the big picture, Mitchell says they’re starting to see signs that retail is beginning to come back.

“A lot of retailers are out of business now,” he says. “The ones that survived are leaner, meaner and stronger. They’ve cut expenses. They’re very careful and trying to be very smart with their site locations.

“Major retailers can’t afford to make any mistakes so they want the slam-dunk or home run deals in large metropolitan areas. Taking a risk on a non-major market like Frankfort is risky because of its smaller population.”

They’re looking at places like Chicago where 300,000 in a 5-mile radius have a household income of $100,000, he says.

“Retailers think this is a good area and market but during this period they’re not going to take a chance. They have to spend a lot of money to open a store and staff it and get the inventory and advertising.

“But most retailers like this area because they’re spending advertising dollars in nearby Lexington and Louisville where they have stores. Frankfort fits in nice. It’s just a matter of timing.”

Mitchell says the Frankfort trade area – including shoppers from surrounding counties – is about 155,000, “and that’s what’s important to retailers.”

He says Parkside and Frankfort have a lot of positives: the state capital, a steady economy, 20,000 to 30,000 commuters a day, good tourism and being on the Kentucky Bourbon Trail, Frankfort Regional Medical Center, Kentucky State University, and being next to Interstate 64.

“Visibility and access are keys to any retailer,” Mitchell says.

Howell, originally from Bowling Green, says Riverford Crossing will be an outstanding community for young working professionals.

The apartment buildings with a variety of brick facades blend an East Coast architecture with a rustic Kentucky landscape and a neighborhood feel, Howell says.

According to Howell, 75 percent of the state government workforce leaves Frankfort after work.

“We want to capture a small percentage of those commuters and keep them here at the end of the day,” Howell says.

“If you look at the economy and the cost of gas, staying here and spending money in the city and getting involved in the city and neighborhood” would be a great deal, Howell says.

The apartments are energy efficient and the fitness center will have a lot of TVs and treadmills and other workout equipment, Howell says.

The clubhouse also can be used for legislative and chamber of commerce-type events, he said.

“We’ve already received a lot of interest in the apartments,” Howell says. “I think we’re going to do great.”

The apartments should be ready for occupancy before spring 2010. Rent ranges from $625 a month to $950, depending on the size.