Haddix: Just say no to PTC big box permit

Tue, 05/27/2008 - 4:39pm
By: John Munford

Next week the Peachtree City Council is expected to rule on whether a proposed shopping center can exceed the city’s size guidelines by 25,000 square feet.

The Line Creek shopping center would be located on a 16-acre site at the southwest corner of Ga. Highway 54 West and Planterra Way. Despite the enhanced landscaping and pedestrian-friendly atmosphere proposed by Capital City Development, some residents think the stores proposed are just too big.

Peachtree City Councilman Don Haddix said he plans to vote against granting the special use permit for economic reasons as well as traffic concerns.

Haddix said he and fellow Councilman Doug Sturbaum did a survey of the city’s largest retail centers to study the amount of vacant storefronts. In those areas, the city has a 19.1 percent vacancy rate.

“That’s huge,” Haddix said in amazement.

It’s also a good argument that the city has far too much vacant retail space available currently, he added.

Their study looked at the Wilksmoor, Westpark, Braelinn, Wilshire and Kedron area large shopping centers but did not include the smaller retail areas that are also having vacancy problems, Haddix said.

Wilksmoor — the former West Village which features the newest-built smaller stores directly along Hwy. 54 — had the highest vacancy rate with 34.89 percent of all storefronts vacant, Haddix said. That’s where the Line Creek development is seeking to build.

Kedron Village came in second with 18.97 percent vacancy, followed by Braelinn at 18.3, Wilshire at 15.7 and Westpark at 12 percent, Haddix said.

Just down the road from the proposed Line Creek shopping center is the new Shoppes at Village Piazza shopping center, Haddix said. None of those stores has been occupied yet.

Add on the proposed mega shopping center being built less than a mile across the county line in Coweta County, and shoppers over there will have no more reason to shop in Peachtree City as they have in the past, Haddix said.

“So we’re going to lose sales that way as well,” Haddix said.

The city benefits financially from retail developments in sales tax revenues and also property tax revenue generation. But with sales taxes decreasing if businesses are hurting, the city also feels the impact in lower revenue collections.

Haddix said the traffic study submitted to the city by CCD does not address the “rush hour” traffic nor any counts on weekends.

Also, the proposed traffic light on Line Creek Drive would further harm traffic flow in the area which is already “red-lining” anyway, Haddix said. Add in cars turning right out of the new shopping center trying to get to the Wal-Mart, who will have to go all the way across Hwy. 54, leaving a significant potential for auto crashes, he said.

“To go to the Wal-Mart, they’ll have to jump over to the left immediately,” Haddix said, predicting traffic in the area to become “chaos” with the Line Creek shopping center and a new traffic light, should it be approved by the Georgia Department of Transportation.

Haddix noted that sometimes westbound traffic on Hwy. 54 backs up all the way to the Wyndham Peachtree Conference Center.

Instead of a stoplight on Hwy. 54 in between the Planterra and MacDuff lights, Haddix said he wants to see the shopping center have an access road that goes across Planterra Way to reach Huddleston Road.

That would be a huge benefit to the residents of Planterra, as cut-through vehicles will find it easier to maneuver down Huddleston than through Planterra, Haddix said.

Haddix also noted that unlike the representations from some citizens, Planterra Way is actually designated by the city as a neighborhood collector road, not just a street for smaller-scale residential traffic.

The access road cutting across Planterra Way to Huddleston Road was nixed by city officials after complaints were received by Planterra residents. That leaves a four-lane driveway on Hwy. 54 as the only way in and out of the proposed shopping center.

The city’s size thresholds require that shopping centers be limited to 150,000 square feet in size, but developers can seek larger projects with the permission from City Council. In this case, Capital City wants to build a 175,000-square-foot shopping center.

CCD also wants to go over the city’s other size limit of 32,000 square feet for two individual retail stores. One, located right off the highway, would be 45,300 square feet and the other, located at the south east corner of the property, would be 42,000 square feet.

Haddix said local, state and national studies have shown that big boxes lead to increased crime rates.

He also argues that the city’s steady drop off the annual “best places to live” rankings has to do with deviating from the comprehensive plan and allowing large retail centers to be built.

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Robert W. Morgan's picture
Submitted by Robert W. Morgan on Wed, 05/28/2008 - 5:30am.

My God Haddix, didn't you attend the orientation for rookie legislators - or don't they do that any more? During the property rights section they will tell you that outside factors not specifically related to the subject property are not to be considered in granting permits or approvals. The vacant space and tax revenue to the city are irrelevant to this application and by discussing it you are only giving the little weasel developer some ammunition for a legal challenge. Granted the fact that he is asking for a rezoning or asking for relief from special conditions insulates you a little bit, but please study up on the law if you are going to vote on things. We have paid more than enough in legal fees defending the actions of rookie lawmakers in this city.

So there is no doubt about where I stand, a no vote is appropriate. Hope 2 others on council see it that way as well. Looks like Cindy is the decision maker. You go (vote no) girl!


Don Haddix's picture
Submitted by Don Haddix on Tue, 05/27/2008 - 5:44pm.

John, one change.

The classification is Neighborhood Connector, not Community Connector. Neighborhood allows low levels of cut through traffic and is below 8,000 trips per day. Kelly Green. Stevens Entry, Blue Smoke Trail, Bridlepath Lane, Crabapple Lane West (SR 74 to Senoia Road), Doubletrace Lane, Golfview Drive and Wynnmeade Parkway are examples of other Neighborhood Connectors.

Don Haddix
PTC Councilman
Post 1
donhaddix.com


Submitted by Spyglass on Tue, 05/27/2008 - 6:41pm.

Are your vacancy rates based on the percentage of square footage that is leased, or just the amount of empty spaces? There is a HUGE difference in the way the numbers would look. The only way to properly do such a study is to use the amount of square footage leased versus the total amount available.

yardman5508's picture
Submitted by yardman5508 on Tue, 05/27/2008 - 6:52pm.

"How many economists can dance on the head of a pin?"...I will grant you that the numbers will look different if you are measuring vacant square footage or vacant buildings. However, that sort of argument obfuscates the issue. We have too much unleased retail space in PTC, period. If we can't support what already has been built, what is the rationale for building more? Keep the faith.

Even a dead fish can go with the flow.


Submitted by Spyglass on Tue, 05/27/2008 - 9:17pm.

Of course you do. I will promise the owner of a shopping center realizes the difference. I disagree that my question serves to obfuscate the issue. I just knew his number claiming that 1/3 of Wilksmoor commercial is empty was useless. It's simply not true, not to anyone who is halfway paying attention. You simply cannot count a unleased 1000 square foot space the same as you can a leased 30,000 foot space. I promise you the tax-man doesn't look at it that way. If Haddix does, he's the one trying to obfuscate the issue.

Now the office building behind the closed Three Dollar, that is empty.

Don Haddix's picture
Submitted by Don Haddix on Tue, 05/27/2008 - 10:11pm.

No. I am not trying to obfuscate anything.

Yes, it is store fronts. And that is because sq' is not the bottom line on how much tax comes to the city from retail. Property tax + sales tax - infrastructure costs - service costs is.

Simple fact is a lot of studies have been done that show Big Boxes and Super Centers cost a city money while small brings in money. The big areas also bring in crime while the small do not. These are realities that are causing many cities to move from malls, Big Boxes and Super Centers back to Village Shopping areas and downtowns. Just look at the Northside to see that reality.

In fact more and more cities are outright banning the building of big.

Such as Suwanee have moved up to eighth best place to live while PTC has fallen from top ten through 2006 to 64th in 2007 and now out of the Top 100 altogether. What changed was our retail policy.

PTC began loosing overall tax receipts, as stated in the Staff prepared budget, because we were approaching build out. That meant that the negative impacts of the retail centers, Big Boxes and such had kicked in without the offsetting money collections from fees and such from new retail construction.

Big Box and such chains are not locally owned, so the money leaves the city. They also have low pay and benefits practices and often the employees do not live in the city where they work. And they have to have a regional customer base. Some states are even considering putting a special tax on Big Boxes because of the increased payouts for wage supplements and health care they are causing.

Small is more local all the way around.

So, building this center, with its Big Boxes, is not going to bring more money into PTC since the market for our consumer base is super saturated already. It will simply end up creating more vacancy, however you calculate the percentage. That makes calculating by store fronts more telling on where we stand retail health wise.

Home vacancies are not calculated on sq' but individual homes. The impact is the same on how to look at this issue.

As well the impact on potential home buyers cannot be ignored. They drive through shopping areas and see all those For Lease signs and it has a dramatic affect on how they perceive PTC.

I believe store fronts is the most telling number to use. Big Boxes hides realities if they are occupied by driving the percentage down if using total sq'.

Just giving some more thoughts since you asked your question. I will leave it to the readers to form their own opinions on this issue with that said.

Hope that helps to answer your question.

Don Haddix
PTC Councilman
Post 1
donhaddix.com


NUK_1's picture
Submitted by NUK_1 on Wed, 05/28/2008 - 7:32am.

PTC began loosing overall tax receipts, as stated in the Staff prepared budget, because we were approaching build out. That meant that the negative impacts of the retail centers, Big Boxes and such had kicked in without the offsetting money collections from fees and such from new retail construction.

The city didn't lose/"loose" tax receipts because of nearing build out. Nothing was lost as far as tax revenue. What declined was the amount of IMPACT FEES collected by PTC. As one of the municipalities smart enough to establish impact fees before it became the trend, council after council rode the wave of seemingly free money from the sky in the form of impact fees that were designed for the very reason of offsetting the costs associated with providing services to these new developments. Aahhhhh...there's the problem. Those impact fees eventually weren't used to offset costs associated with the developments; they were used to balance the frickin' budget instead! Does this sound like the Social Security budgeting scam? So, impact fees were collected without being used for their intended purpose. Some who were charged impact fees could make a strong argument about this too.

The days of low impact fees collected arrived a few years ago. The Brown Council-you have to give them credit here-recognized what had been happening(impact fees used as general do-whatever-with-it revenue) and how impact fees were dropping and would keep dropping. They got the City's financial house somewhat put back in order.

By any standard I have ever seen, commercial property availability is expressed in square footage, not storefront. I have never seen any economist ever state something like "downtown Atlanta has X% of vacant storefronts." It's "Atlanta has Y% of available commercial square footage."

How many small business storefronts in PTC are vacant right now? I see a whole bunch in the Braelinn VILLAGE. I see some in the Kedron VILLAGE. I see a ton in the Glenloch VILLAGE. Don't tell me that the village concept is necessarily a winner because demographics, traffic, growth,etc all change over time and that has a direct effect on the villages themselves. While it's easy to say that indoor mega-malls are not the current trend, outdoor malls are, which is why there are 2 new Avenues being built on the northside right now. Same idea as a mall, just outdoor. Who are the inhabitants of these Avenues? Those same national chains by and large that would inhabit an indoor mall with a very few local, small businesses.

Reality is that small business RETAIL is not the small businesses most talk about when they say small business is the economic engine of the country. Retail is always going to be dominated by large chains because most Americans have made it crystal-clear that price is the most important shopping factor they consider, and the economies of scale of large retailers means they will always kill-off small business RETAIL.


Submitted by Spyglass on Wed, 05/28/2008 - 1:52pm.

One, the general downturn in the economy is having an effect here in our direct area. Two, instead of gaining retail sales from Newnan/Coweta, I think we may be losing retail sales to them. They are continuing to grow their retail base.

I fail to see how an additional 25K square feet at the development in question is going to be the death knell of PTC.

I also seriously question Haddix if he really thinks he is measuring available retail by simply riding around and looking at empty parcels versus available parcels.

The property was zoned commercial when this process started, and we can either work with the developer or continue to see retail sales go "across the border" to Coweta/Newnan. I think the compromises made are for the most part fair on this parcel.

All that said, I would never have voted to approve the original Big Box K-Mart, Walmart, Home Depot, Target myself.

Mike King's picture
Submitted by Mike King on Wed, 05/28/2008 - 8:03am.

Irregardless of the decision to allow 175,000 or a million square feet of BIG BOX retail space on this site, the damage is done. When Peachtree City gave away the streets to CCD they forfeited any real authority over what is to be built upon the property.

Without exception each shopping center in town continues to lose businesses at a rate that would be alarming to most city officials, but not to those who have gone out of their way to facilitate this commercial nightmare. Their financial planning background saw all of this coming and has transformed a budget surplus into a deficit in just over two years while continuing to degrade the quality of life that brought us here.

Thanks.


Submitted by sageadvice on Tue, 05/27/2008 - 7:07pm.

Why build more when we have some empty?

I recall when Dulles airport was first opened in Virginia, near D.C., there wasn't anything there.
One or two planes at a time was a lot!
I flew into there once from Rome--by way of Frankfurt, and we were the only plane I saw there! We sure use it now!

There used to be better planners than we seem to have now, but just because some buildings are empty doesn't mean another developer can't be successful.
We will always have empty, dirty buildings sitting around--that is the fruits of capitalism.
Anyway, sometimes certain real estate gains more value per year than it cost---without any rent! Little right now, however.

Anyway those NJ dentists need somewhere to put their retirement money!

yardman5508's picture
Submitted by yardman5508 on Tue, 05/27/2008 - 7:44pm.

but here we are talking about building yet another shopping center in the middle of an area of underutilized retail space. What if they had proposed building another major airport across the street from the newly opened Dulles airport. Would you ave felt the same way? Keep the faith.

Even a dead fish can go with the flow.


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