CODDINGTOWN: Mall merchants frustrated as plansfor vacant anchor space uncertain

The loss of Gottschalks will create a gaping hole in the side of Coddingtown Mall likely to exacerbate the woes of an aging center already suffering from the loss of local tenants and a sharp drop in foot traffic.

"It's a ghost town," said shopper Steve Sargent as he got his watch fixed at Gold Star Jewelry. "It's cool -- I don't like crowds."

But with about a dozen storefronts vacant and a large anchor tenant about to shut its doors, mall officials and local merchants don't see anything "cool" about trying to do business in a half-empty mall.

Frustration is mounting among longtime tenants who see little benefit from the partnership struck in 2005 between Rohnert Park mall developer Codding Enterprises and Simon Property Group, the Indianapolis-based firm that is the largest mall owner in the nation.

"It's just a matter of time before all the independents will disappear from here," said David Astobiza, owner of Sole Desire shoe store. "If there is not some fresh blood, Coddingtown will disappear."

Simon Property Group is committed to finding a new tenant for the Gottschalks building, but can't say how long that process might take, said marketing manager Kim Hall.

"We're very actively pursuing tenants," Hall said. "It's a great space and there's already been some interest in it."

Hall declined to identify the retailers who might be interested and said she wouldn't be able to do so until a lease is signed.

If the process at Santa Rosa Plaza is any indication, however, it may take some time.

Department store Mervyns closed at the end of last year. Three months later, that space has yet to be filled. Unlike the Gottschalks building, however, the Mervyns building is not owned by the mall, but rather by Mervyns' owner, investment firm DDR, she said.

Lois Codding, vice president of leasing at Codding Enterprises, agreed that leasing the Gottschalks space will take some time. The likelihood a new tenant could be found and installed within a few months was "slim," Codding said.

"The lease process alone takes so long," Codding said. "They all seem to take forever."

The Target chain has expressed interest in the space, but isn't fond of two-story locations, Codding said.

"The toughest part is that Target needs a one-story building," Codding said. "That means knocking down the whole building, and that's not very green."

In the interim, Codding plans to work with businesses near Gottschalks to move them out of that area and closer to the main corridor running between Macy's and J.C. Penney, she said.

"I don't want anyone suffering because they are too close to Gottschalks," she said. "We may have to move some people around."

How much patience store owners have for another round of musical chairs remains to be seen.

Narsi Samii, owner of Narsi's Hof Brau, has been fighting with Simon for months over the company's efforts to evict his restaurant from its space at the northern entrance to the mall. Simon wants to make way for a large national restaurant company, such as Cheesecake Factory, at Coddingtown.

Samii said he no longer trusts Simon's promises of upgrades and new tenants.

"We have been told that for years," Samii said. "Now we want to see action, or at least keep the public informed."

Other retailers have endured moves to make way for the construction of a new building for Whole Foods Market, but that project has been delayed until 2010. Despite the delay, that market remains viable and the Austin, Texas-based organic grocer is "committed" to opening in Coddingtown, Hall said.

"We are looking forward to the addition of Whole Foods," Hall said. "I think it will bring a lot of excitement once that is open and we continue to get better economic times."

Codding said communication has been poor between local retailers and Simon. That stemmed in part from confusion over each partner's responsibilities, she said.

Codding Enterprises and Simon each own a 50 percent stake in Coddingtown. Codding Enterprises allowed Simon to largely manage the mall on its own, even though the original agreement called for Codding Enterprises to manage the locally owned retailers, she said.

Local retailers were initially in favor of Simon's plans because it promised major renovations and new tenants many felt were needed to draw new customers, she said.

"Now that support has wavered, and they seem to be all too happy to let us back in," Codding said.

Codding is now taking a more active role in the local leasing at the center, she said.

Simon will continue to seek national tenants, including the large anchor tenants it hopes will revive the shopping center, Codding said.

Simon remains committed to creating a good mix of local and national tenants, Hall said.

A new photo studio just moved to Coddingtown from the Northgate mall in San Rafael. And Simon's Kidgits club, part of a promotional campaign to hold monthly events for children at its malls, now has more than 2,000 members in Sonoma County, she said.

"We all want better things ahead," Hall said. "We want to see Coddingtown succeed and we're invested in making it a great center again."

You can reach Staff Writer Kevin McCallum at 521-5207 or kevin.mccallum@

pressdemocrat.com.

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