After several years letting its partner take the lead at Coddingtown Mall, local development firm Codding Enterprises is stepping back into a more active role at the struggling center.
Officials at the Rohnert Park-based company, whose founder Hugh Codding developed the 1960s-era mall, are trying to increase communication with retailers and improve coordination with partner Simon Property Group.
The changes follow a rash of store departures from the aging shopping center and delays in long-promised renovations, setbacks that have remaining merchants worried about the center's future.
Lois Codding, the 33-year-old granddaughter of Hugh Codding, said she has recently gotten more involved in efforts to revitalize the center after witnessing longtime tenants depart and hearing a litany of complaints from the merchants who remained.
"After all, it's our name attached to it," said Codding, vice president of leasing at Codding Enterprises.
In an effort to stem the exodus of local merchants from the center, Codding said she is trying to help resolve conflicts, open lines of communication with Simon and clarify each partner's respective roles at the mall.
"We're trying to make it more of a partnership that works together," Codding said. "Because we're connected locally and they're connected nationally, and you need the two forces to make it successful."
While subtle, the recent reengagement by Codding Enterprises highlights something Coddingtown merchants have long suspected -- that the partnership between Codding and Simon hasn't always been a smooth one.
The sweeping redevelopment of the mall envisioned when the partnership was formed in 2005 has yet to materialize. Some local merchants are disillusioned by the delays. And communication between the two partners has been spotty.
"I think it was a serious miscalculation for Codding to ever get in bed with Simon," said Arnie Feldsher, longtime owner of the Earthworks jewelry store, which closed early this year.
Simon owns the city's other main mall, Santa Rosa Plaza, which competes with Coddingtown for shoppers and merchants. Feldsher thinks Simon might not be highly motivated to help Coddingtown thrive because it owns the rival downtown mall.
"You don't partner up with your chief competitor," Feldsher said. "They have no incentive to make you successful. You partner up with your chief competitor's strongest competition."
Back in 2005, Codding Enterprises, under the leadership of new chief executive officer Brad Baker, was trying to find a way to finance a major facelift for Coddingtown, the company's largest asset.
The 800,000-square-foot mall had struggled for years to attract new national tenants and shake its image as a dated shopping destination. After entertaining offers from three of the world's largest mall developers, Codding Enterprises sold a 50-percent stake in Coddingtown to Simon Property Group.
The Indianapolis-based company is the largest mall owner in the nation, with an ownership interest in 386 properties on three continents. In addition to Santa Rosa Plaza, it also owns the Petaluma Village Premium Outlets.
The $37 million transaction put Simon in charge of the day-to-day operations of the mall. It also split the leasing responsibilities between the two partners, with Simon primarily responsible for attracting national tenants.
"We looked at them as the savior," Lois Codding recalled. "They were taking the lead, and we let them."
But four years later, the redevelopment remains in its infancy. The recession, credit crunch and most challenging retail climate in memory have made attracting new major tenants a significant challenge.
The only major new lease signed since the partnership was formed is Whole Foods Market, which has yet to move forward with its part of the project, citing the slow economy. Codding Construction completed the $7 million building shell last fall, but Whole Foods doesn't expect to occupy it until 2010.
The delay by the organic grocer spooked many local merchants, many of whom worried it might not open at all. Whole Foods officials have since said the company is committed to the project.
Nevertheless, about a half-dozen stores -- including longtime tenants Toys West and Earthworks -- left or announced plans to leave around the end of the year. The departures left behind more than a dozen empty storefronts, which serve as a constant reminder of the center's challenges.
Another longtime merchant, The Classic Duck, has also announced its departure, and bankrupt department store Gottschalks is closing by July 15.
After Whole Foods announced its delay in the fall, Lois Codding says she realized someone from Codding Enterprises needed to get more involved in the mall.
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