Departing Hansen's Menswear Adds to Growing List of Vacancies For Gateway Mall

Another long-time tenant at Gateway Fashion Mall has announced they are departing. Hansen's Menswear announced they are relocating to 1003 East Interstate Avenue, near Bob's Photo/A&B Pizza. According to the report, Hansen's has been at Gateway for 30 years, which presumably means it was an original tenant since Gateway Mall is celebrating its 30th anniversary this exact month.

According to an article posted by KXMB, Hansen's Menswear is relocating to "cut expenses". It is interesting to note that Cheryl Hansen is the Mall Manager at Gateway, and has been for many years, so the departure of her husband's retail store is definitely a surprising development.

This is the third major retailer to announce their departure in recent months, beginning with the June announcement of Conlin's Furniture and Joy's Hallmark. The recently renovated center has still yet to fill the former CVS/pharmacy spot, left vacant since February of this year.

Gateway Fashion Mall's owner is currently battling a fraud lawsuit for both the Bismarck shopping center and two he owns in California. This, on top of the mounting vacancies certainly puts a dark shadow on the mall's future.

Hansen's Menswear is expected to relocate in October into the Interstate Office Building at 1003 East Interstate Avenue, next to A&B Pizza and Bob's Photo.

Read the KXMB article with the announcement here: http://kxnet.com/getArticle.asp?ArticleId=443076

Related Blog Articles:

Gateway Fashion Mall's Owner Faces More Fraud Allegations Gateway Mall Suffers Another Loss

Why Does Downtown Bismarck Need Another Parking Ramp?

A few weeks ago, the City of Bismarck announced intentions to construct yet another downtown parking garage, next to the City/County Building. The $7 million garage is expected to have a capacity of about 500 cars. My question is simply... why? There are already a total of 6 parking garages located downtown, 3 of which are city-managed. Not to mention, this proposed garage will be located directly across the street from the Parkade.

On the rarity I go inside either of the two "main" garages there are practically no cars parked inside, sitting practically abandoned. I took the picture above in mid-afternoon during the recent Downtowner's Street Fair - an event that draws thousands of people to downtown each year. The access to the Parkade was readily open on 6th Street, unaffected by the fair, and yet I found only a very small handful of cars inside. Instead, people were parking several blocks away, crossing busy streets and causing a hassle for traffic.

Parking and traffic have been concerns in downtown for decades, causing numerous problems for the historic district. The Pakade was constructed in the mid-1960s to alleviate some of the issues, and a set of confusing one-ways were enacted in 1973, but the issues continued to escalate. The newest downtown garage was built in 1993, and yet parking remains a problem. Building another 500-car capacity garage is not going to solve downtown's parking issues; it will sit mostly empty, as the others do, while taking up valuable real estate.

Part of why the garages are rarely used is the cost. Granted, the cost for a monthly parking pass is far below the $100+ you'd find in a city like Minneapolis, but a parking pass at the garages is beyond affordability for most who either live or work in downtown Bismarck. Many of the downtown employees only make $8-$9 an hour. Most of the downtown apartments were built long before the automobile was a common way of life, therefore do not have parking lots, and rents tend to be on the lower end for the majority of these units, typically around $400/month.

Here's my solution: make the parking garages free to park in, even if it's only for a limited amount of time (say 2 hours). Better yet, give free passes to those who live and work downtown, freeing up street parking for their patrons.

Yes, I do know that it costs hundreds of thousands of dollars each year to maintain the parking garages, and this additional cost would be a big burden on the city. But, on the other hand, downtown Bismarck is notorious for business turnover and building vacancy, often because of the parking issues. We are already taking up large chunks of valuable real estate for parking garages people rarely use. Let's find a reason for people to use the garages we already have before building another.

Gateway Fashion Mall's Owner Faces More Fraud Allegations

When Raymond Arjmand purchased the plagued Gateway Mall in 2006, it seemed like the 30 year-old center would finally get the push it needed to survive. Almost immediately after its purchase, Arjmand announced bold new initiatives to reinvent the failing center, including a multi-million dollar renovation project - the first major remodel since the center's opening in 1979.

Last July, the owner of Joy's Hallmark filed a lawsuit against Arjmand stating he charged tenants for common area maintenance and improvements above what was actually completed. Now, two months later, Arjmand is facing similar lawsuits at two other malls he owns in California. According to the allegations made against him, Arjmand and two business partners would inflate estimates for the cost of repair and renovation projects and then pocket the additional money.

Arjmand indeed did complete the promised renovations of the dated Bismarck mall, and in turn renamed the center "Gateway Fashion Mall", believing the new name and look would draw higher profile stores to the center. Major cosmetic upgrades were made inside and out, and Arjmand also announced intentions to expand the mall with another anchor tenant, rumored to be Macy's.

On the surface, it appears Arjmand has had good intentions to revitalize the center, but these common area improvements seem to be at the heart of the lawsuit filed against him. Is it possible he's only making these improvements as a part of these alleged business dealings, profiting off of the improvements?

This is not the first time Arjmand has come under fire in the Bismarck region. In September 2007, it was reported that Arjmand was demanding $20,000 from the CAT busing system and a $2 million insurance policy, or else he wanted the buses to stop using Gateway Mall's parking lot as a stop. This was definitely a clear sign of greed on Arjmand's part, but also a sign of poor business practices as the busing system drew potential shoppers to Gateway Fashion Mall, many of whom cannot drive to the center on their own.

Beyond that, many consider Arjmand plans for the mall to be unrealistic for Bismarck-Mandan. For example, the likelihood that Macys would open a store at Gateway when its parent chose not to convert the Kirkwood Mall Marshall Fields into a Macys, instead closing the store. It also seems unlikely that other higher-end retail stores, like Nordstroms or Bloomingdales, would open in Bismarck when they primarily focus on big metropolitan areas. Even Minneapolis-Saint Paul has only a small handful of these types of stores.

Did Arjmand just purchase Gateway Mall to be another victim in his scheme of corruption? Perhaps. Or, maybe he does have a genuine interest in seeing its success. It'll be interesting to see how this all unfolds.

Read Bismarck Tribune's article on this topic here: http://bismarcktribune.com/business/local/article_daaae9dc-a3c1-11de-9e06-001cc4c002e0.html

Learn more about Gateway Fashion Mall here: http://www.strekonline.com/bismarck/terms/gateway.htm

Read my original blog on Conlin's & Hallmark's departure here: http://randy394.blogspot.com/2009/06/gateway-mall-suffers-another-loss.html

Mayor Warford Changing His Mind On Raising Sales Tax?

Yesterday, Warford proposed delaying the vote to raise the city's sales tax another 1%, barely ten days after he first announced his intentions to raise the tax. It's not that he's changed his mind on raising the tax, but rather postponing it until next year.

Warford stated that timing may be poor because the "recession has come to Bismarck". What happened within a week that convinced him that the recession has finally come to Bismarck? It wasn’t Bobcat’s closure, because that came almost an entire week before. How could he (and other local politicians) not have realized this ten days ago, before proposing a sales tax increase, when I've been predicting Bismarck's economic woes since last year.

This sudden change in opinion is more likely a reaction to the negative feedback generated by the original announcement, than it is a sudden realization that the recession's affecting Bismarck.

Read my original blog about this topic here: http://randy394.blogspot.com/2009/09/sales-tax-increase-civic-center.html

Read my January 2009 blog predicting how the recession would affect Bismarck here: http://randy394.blogspot.com/2009/01/bismarck-is-not-immune-to-economic.html

Remembering Gourmet House Restaurant

Gourmet House was a highly rated restaurant with locations in both Bismarck and Mandan. The restaurant first opened in 1959 on the Mandan Strip, by Bob & Eileen Clifford. Gourmet House received numerous awards, and was the first restaurant in North Dakota to be recognized with a four star rating in Holiday Magazine. Gourmet House also received a Gold Seal Award from the National Restaurant Association in 1967, and was once featured in the New York Times.

Gourmet House ended operations on June 30, 1989. The restaurant was later sold and reopened in January 1990, however closed again, for the last time, in September of that year. The former Mandan location now houses a funeral home.

Gourmet House was known for its "nine spice" seasoning called Gourmet House Seasoning, which is now sold and distributed by the Clifford's daughter.

External Link:
www.gourmetseasoning.com

Sales Tax Increase & Civic Center Expansion Concerns

Bismarck Mayor John Warford has proposed a one percent increase in the city's sales tax, bringing the total sales tax to 7% in the city of Bismarck. If approved, Bismarck would have the highest sales tax of any city in North Dakota. This comes after a failed attempt earlier this year by the state legislature to eliminate all sales tax on clothing, in reflection to Minnesota's similar tax program.

Warford claims one benefit to the increased tax is that it will actually lower property taxes; a tax for a tax if it were, however he doesn't seem to realize the impact it may have on local businesses, especially those specializing in big-ticket items like cars, boats, and even electronics, as many citizens already travel to nearby Montana, which has no sales tax. Car dealerships in Bismarck would have a tremendous disadvantage to those located in Mandan or other nearby cities. A 1% increase on a $20,000-priced car equals an extra $200 simply in sales tax. Now, this may not turn the average citizen away, but the increasingly more common penny pinches might be more apt to buy a car from say... Resslers rather than Stan Puklich simply to save that $200.

Why is the mayor proposing this sales tax increase? Amongst other projects, the additional income will primarily provide funding for a $26 million expansion of the Bismarck Civic Center. Built in 1969, and already expanded several times since, the Bismarck Civic Center is the state's third largest public venue, behind the Fargodome and Grand Fork's Alerus Center.

The planned Civic Center expansion is to be completed in three phases, one of which will include a 16-story 260-room hotel & waterpark, built by Winnepeg-based Canad Inn, who is in the process of building a similar hotel adjacent to the Grand Forks Alerus Center.

One issue that arises is that the proposed hotel, which will stand just three stories shorter than the State Capitol, is to be built in the lot between the Civic Center and former Dan's Supervalu (now Gold's Gym). This will seriously reduce the amount of parking space for the Civic Center, especially considering that the hotel patrons will also have to find a place to park. The plan does include an underground parking garage, however I fear it may not be enough accommodation.

This hotel's construction could also seriously impact other area hotels, most notably the Ramkota and Expressway Inns, as their already close proximity to Kirkwood Mall and the Civic Center represents their primary patron. Another question is if Bismarck needs another hotel, especially one as large of 260 rooms, after the opening of three hotels in 2007-2008 totaling 250 rooms.

This is not the first major project proposed recently, following the nearly completed Bismarck State College Aquatic Center, which too was partially funded by the city, and a poised multi-million dollar expansion of the State Heritage Center. It seems that the city and state governments are eager to spend money on non-essential projects in the midst of one of the nation's worst economic downfalls, as if trying to prove to everyone that North Dakota's economy is not affected. North Dakota may currently have a huge budget surplus, but if this massive spending continues we will be bordering the deficit line like most other states.

There does not seem to be much public support for either a sales tax increase or the proposed Civic Center expansion, and it therefore seems unlikely to pass if it goes to a public vote, however if local history is representative, it will continue to be pushed until it does pass.

Remembering Bismarck's Past Retail Favorites: Webb Brothers

Webb Brothers was an early furniture and department store located in downtown Bismarck for over sixty years. The Webb brothers, William and Philip, came to Bismarck in 1884 from New Jersey and opened a furniture store. Webb Brothers later expanded their merchandise to include dry goods and carpet. For five years, Webb Brothers was the only dry goods store in Bismarck; and was also the only furniture store between Jamestown, North Dakota and Glendive, Montana for twelve years.

The famous August 1898 Fire destroyed the Webb Brothers store, forcing them to construct a brand new building to house their business at the intersection of Third Street & Main Avenue, where it remained until ultimately closing in December 1945.

When competitor A.W. Lucas and Company opened in 1899, Webb Brothers welcomed the competition, so much so that they provided financial assistance to their competitor. Webb Brother's move paid off as their business actually increased after the opening of A.W. Lucas.

Philip retired in 1921, but William continued to operate the business. In 1928, Webb Brothers opened Bismarck's first funeral home. It was at this time that the store exited the dry goods business, and instead expanded their furniture selection. 1928 also saw a change in ownership to the sons of William Webb, Philip and Robert.

The Webb Brothers often had annual sales nearing half a million dollars (not adjusted for inflation). In addition to their retail store, the Webb Brothers were also active in real estate, developing and purchasing several buildings in Bismarck.

In addition to running his store, William Webb served one term as Bismarck mayor. He also served on the city council, and as chairman and president of several organizations, including the board of county commissioners.

Webb Brothers was first located at 514 Main Avenue, then relocated to 223 Main Avenue. The Webb Brothers Block was completed in 1900, housing the retailer until its closure. The second floor of the Webb Brothers Building housed the Federal District Courtrooms until the completion of the first Federal Building in 1913, and also housed state government offices for a short time following the Capitol's destruction in 1930. Immediately following Webb Brother's closure, the building underwent major renovation, initiated by national retailer Sears, who then occupied the building until it relocated to Gateway Mall in 1979. Conlin's Furniture then occupied the building, until it too relocated to Gateway Mall in 2004. Today it is home to Zimmerman's Furniture.

This article is part of an exclusive series on BismarckPride.com, click here to read them all.

Bobcat Announces Bismarck Closure

After months of speculation and rumors, Doosan Infrastructure officially announced its intentions to close the Bismarck Bobcat Plant, in a cost-saving effort to consolidate North Dakota operations into its Gwinner, ND plant. The move will result in the termination of approximately 475 jobs in the Bismarck-Mandan area, a metropolitan area that's seen little impact on the failing economic conditions. Melroe Manufacturing, who established the Bobcat name in 1962, opened their Bismarck plant in 1974. The company has gone through several owners over the years, most recently purchased by Doosan in 2007.

This announcement comes after months of layoffs and cutbacks at both the Bismarck and Gwinner plants as the company faced a major downturn in sales in this increasingly tough economy. Until recently, the Bobcat Plant was considered to be good, stable employment for anyone seeking work in the manufacturing industry. Many of Bismarck's employees had been with the company for over twenty years.

North Dakota has frequently been in the national spotlight for its reported job growth and seemingly unaffected economy, but this unfortunate loss of jobs will no doubt impact the city's much bragged about 3.6% unemployment rate.

One big problem for Bobcat employees is that there are very limited open positions in the state for their high specialized skills. Bobcat is one of the only manufacturing companies in North Dakota, and certainly the largest of such companies in the state. With the increasing opportunities in the state's wind energy programs, certainly some will find work in that field, but let's not forget that the state's oil industry too has taken a hit, after booming just over a year ago.

Bobcat had been such an important factor for the Bismarck-Mandan economy that the local NAHL hockey team, Bismarck Bobcats, was named in the company's honor.

On the same day of Bobcat's announcement, another long-time local business also announced its intentions to close. Captain Meriwether's Restaurant on the Missouri River shore, adjacent to Keelboat Park and the Lewis & Clark Riverboat, announced that it was forever closing on September 5.

Click here to read more about Bobcat/Melroe.

Click here to read my blog article dated January 20, 2009 entitled "Bismarck Is Not Immune to Economic Conditions", which details my belief of how Bismarck's bubble can and will burst, in which I also predicted Bobcat's closure.