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(From NREI - National Real Estate Investor)
Caruso Wins First Round of Mall Wars
The outdoor lifestyle center has defeated the enclosed mall-at least in Glendale, Calif. On Tuesday night, voters in the southern California city narrowly approved three measures that would allow renowned developer Rick Caruso to build his $264 million Americana at Brand outdoor mall.
The vote follows months of a heated campaign between Caruso and General Growth Properties, which funded the petition for a referendum election on the mall and owns the nearby Glendale Galleria.
Opponents to Caruso's 265,000-square-foot-center said the proposed mall does not fit in with area business and would cause traffic jams. The Americana will include retail, restaurants, movie theatres and a two-acre park in the middle of the city.
"The voters saw through General Growth's campaign of misinformation, deception and outright lies and perceived it for what it was-an effort to head off competition," said Rick Caruso in a press release, CEO of Caruso Affiliated, which will develop the mall.
It is estimated that Caruso spent $1.8 million in direct mail, print ads and television commercials to defend his project, while General Growth spent $1.5 million in its opposition campaign.
General Growth wasn't immediately available for comment.
Caruso Wins First Round of Mall Wars
The outdoor lifestyle center has defeated the enclosed mall-at least in Glendale, Calif. On Tuesday night, voters in the southern California city narrowly approved three measures that would allow renowned developer Rick Caruso to build his $264 million Americana at Brand outdoor mall.
The vote follows months of a heated campaign between Caruso and General Growth Properties, which funded the petition for a referendum election on the mall and owns the nearby Glendale Galleria.
Opponents to Caruso's 265,000-square-foot-center said the proposed mall does not fit in with area business and would cause traffic jams. The Americana will include retail, restaurants, movie theatres and a two-acre park in the middle of the city.
"The voters saw through General Growth's campaign of misinformation, deception and outright lies and perceived it for what it was-an effort to head off competition," said Rick Caruso in a press release, CEO of Caruso Affiliated, which will develop the mall.
It is estimated that Caruso spent $1.8 million in direct mail, print ads and television commercials to defend his project, while General Growth spent $1.5 million in its opposition campaign.
General Growth wasn't immediately available for comment.
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Re: Mall Wars
Sat, September 25, 2004 - 10:59 AM(From GlobeSt.com - real estate publication)
Voters Support Caruso in General Growth Dispute
By Bob Howard
Last updated: Thursday, September 16, 2004 09:14pm
GLENDALE, CA-Voters here have approved three city ballot measures in support of L.A.-based developer Rick Caruso's efforts to build an open-air shopping center that is opposed by General Growth Properties, owner of the 1.5-million-sf Glendale Galleria, which is across the street from the site of the proposed Caruso development. The City of Glendale reported that the three ballot measures "A,B, and C" polled yes votes of 51.8%, 51.3% and 50.9% respectively.
The citywide vote was the latest development in a battle between
Chicago-based General Growth and Caruso's development company, Caruso Affiliated, which proposes to build a $265-million, 476,000-sf project including retail, restaurants and movie theaters, a two-acre park and other amenities at a development site of nearly 16 acres.
The Glendale City Council approved the project in April, but the election measures this week, the result of a referendum supported by General Growth, asked city residents to either confirm or reject the city's approvals. Caruso describes the project as similar to the Grove, Caruso Affiliated's
lifestyle and entertainment center adjacent to the Farmers Market in Los Angeles.
Caruso and General Growth each spent in the neighborhood of $1 million, and possibly more, in campaigns supporting their positions on the ballot measures. Following the election this week, Caruso issued a news release saying, "Now we can get busy creating an exciting destination that will put Glendale back on the map in Southern California."
Officials at General Growth could not be reached for comment on whether the company would continue to oppose the Caruso plan, either by challenging the election results or via other means.
