Fri, Oct 10, 2008
Merchants in the River Center say they want out.
David Kemper/Arizona Daily Star

Business

Wal-Mart drops River Center store; other tenants leave

By Siobhan Daniel
FOR THE Arizona Daily Star
Tucson, Arizona | Published: 02.27.2008
Wal-Mart has dropped its plan to open a Neighborhood Market at River Center, a shopping center at East River and North Craycroft roads.
After a couple of years of negotiations, Wal-Mart Neighborhood Market terminated its tentative lease agreements with River Center landlord Larsen Baker LLC on Monday, Wal-Mart spokeswoman Delia Garcia said Tuesday.
The presence of a Walgreens drugstore in River Center complicated the possible opening of a Neighborhood Market because Walgreens' lease has restrictions on competitors operating in the same center, said Garcia and Andy Seleznov of Larsen Baker.
Seleznov confirmed he received a letter from Wal-Mart informing him that the retail giant had decided to back out of negotiations. After Wal-Mart's change of plans, Seleznov said the company is not yet negotiating with any other prospective tenant.
"Larsen Baker LLC does have some ideas of what directions we are going to, but we need time to implement these ideas," he said.
Any new anchor would come too late for several shopkeepers who said they're leaving River Center when their leases expire because road construction, the weakening economy and the lack of a major retailer mean the center has had inadequate traffic to support their stores.
Some tenants said they were promised an anchor tenant was on the way, but the delay has left them no choice but to leave.
Once Upon a Time, a children's dress-up boutique in River Center, is scheduled to be open just two more days, Friday and Saturday. Owner Laura Read blames lagging foot traffic and sales on road construction and the lack of an anchor in the center.
"Promises of an anchor store were made and used as an enticing sale point," Read said.
An anchor retailer — generally a well-known company that attracts people to the center — usually occupies the largest space in a shopping center. The vacant, 43,000-square-foot anchor space at River Center formerly was occupied by ABCO and IGA supermarkets.
With no anchor, Read tried to find other ways to bring business to River Center, such as holding a fundraiser for the Boys and Girls Club in December. Now she plans to go back to running the business from her house.
"Moving here was a bad business decision," Read said.
The UPS Store in River Center will close March 31.
"We don't have an anchor, and we were promised one when we moved in five years ago," said Cheryl Becht, general manager at the store. "No one can get started in here without some type of an anchor."
Seleznov said Larsen Baker never promised an anchor tenant, though the company has been working to sign one up.
"We realize the tenants would perform better with an anchor in the center, and the landlord wants an anchor for the rent," Seleznov said.
Another tenant who can't wait is jeweler Quina McCalley, who said she will likely leave the center in September, when her lease is up, because business has been slow because of the weak economy and the lack of an anchor to draw traffic.
David James, owner of The Art Company, has been at River Center for more than one year, and when his lease ends in December, he will close his store. He said he was promised an anchor would be in the shopping center within two years.
"I am tired of getting the run-around," he said. "I have spent four times what I have made at the River Center."
Michael Danielson, owner of M Salon, said he opened his business three months ago and was told an anchor would come to the center soon.
With the end of the road construction near, Danielson said he is optimistic that the center can turn business around and start doing well.
Road construction at East River and North Craycroft roads began in early 2006 and will be finished by the end of May, said Carol Brichta, spokeswoman for the Pima County Department of Transportation.
Traffic problems caused by the construction were aggravated in July, when heavy rains caused a sinkhole to develop at the intersection.
To celebrate the construction coming to an end and bring business back to the center, the Dusenberry-River Branch Library is hosting a free event March 8, with shows and demonstrations called Rock and Roll at the River.
The construction still left to do consists of landscaping, artwork and the last layer of asphalt to smooth out the road, Brichta said.
● Siobhan Daniel is a University of Arizona student who is an apprentice at the Star. Contact her at 573-4181 or starapprentice@azstarnet.com.