Ponce Mall focuses on 'making the mall a success'

Ponce Mall focuses on 'making the mall a success'

Owners once considered demolishing building, now see encouraging future

By ANTHONY DeMATTEO
Special to The Record
Publication Date: 05/13/09

For years, locals have said that Belk Hudson and JC Penney are the only things keeping the Ponce de Leon Mall alive.

They were right.

For about five of the six years that Hull Storey Gibson Companies, LLC, have owned the mall, they have had a specific vision for it.

"We wanted to demolish it," said company CEO John Gibson. "We discouraged tenants from staying, leasing month-to-month with the goal of redevelopment. But Belk's and Penney's are doing -- and have done -- so well that we've refocused our efforts on making the mall a success."

Members of the ownership group, a privately held company in Augusta, Ga., and a few tenants celebrated the mall's remodeling at a small Tuesday afternoon ceremony. The corporation owns 17 enclosed malls in seven states. St. Augustine is the smallest of the markets.

About a year ago, the mall got a new roof. In recent months, additions have included new carpeting, raised ceilings and new lighting. There's even fresh black mulch and brightly painted white columns flanking the front entrance. Gibson declined to discuss the cost of the work.

Gibson said the two anchor stores have long-term lease options and that it would be fiscally impractical to buy them out and raze the property.

However, one section of the mall that will be torn down is the recently vacated Regal Cinemas.

"It will be raw land," Gibson said. "That will provide a better view of Belk's. No one is coming back to build a theater here again."

Gibson has a message to prospective tenants at the Ponce.

"We want to work with you," he said. "If you are committed, if you want a better location, another location -- call us."

Gibson also said he wants people to know the group is eager for the mall to host community events.

"If it's beneficial to the community, we want it held here and we'll do it for nothing."

Indoor malls on rebound

Gibson said there are about 1,200 enclosed malls in the United States, although the trend nationally has been to outdoor malls such as the St. Johns Town Center in Jacksonville.

Gibson said he thinks, especially in the South, that the trend toward building outdoor malls is waning.

"People have been talking about the end of the indoor mall for decades," Gibson said. "But what we see is that many of the new outdoor malls are suffering."

Gibson sites air-conditioned space, the convenience of walking from store to store and "all-weather space" as advantages of indoor malls.

His goal is to see the Ponce mall with significantly increased occupancy and traffic about this time next year.

"The good news is that we have a clean slate and a great community and location," said Gibson's partner, Jim Hull.

Hull said he thinks the popularity of outdoor cafes and restaurants helped fuel the trend of building outdoor malls.

"But I think, from what I've seen, lots of them are struggling and the tried-and-true enclosed malls are strengthening."

Tenant hopeful

Frank Arguello, who has owned De Leon Pizza at the Ponce mall for nearly 20 years, is opening a new pizza shop at the EPIC Theatres complex on State Road 207. But he said because of recent discussions with mall owners, he might remain at his current location as well.

"They told me everything I wanted to hear," Arguello said.

Arguello said he'll know whether he is staying at the mall by the end of June.

Some patrons are not hopeful for the mall's prospects.

"I think they're slim to none," said Pat Marshall, who has lived in St. Augustine more than a decade. "They need stores. They need entertainment. There's nothing to do."

Gina Jones, who owns a health and fitness club in the mall, is cautiously optimistic about its recovery.

"They've got to do something soon," she said. "Maybe this is a start. Hopefully, we won't see all these cages pulled down over empty stores in a few months."

Ky Widener, the ownership group's vice president of leasing, said the city should expect the plan to revitalize the mall to succeed.

"We fully expect this to be a success story," Widener said. "I think we will see local and national retailers occupying space here within the year as a result of this renovation."


Click here to return to story:
http://staugustine.com/stories/051309/news_051309_004.shtml

© The St. Augustine Record