September 23, 2008 - Journal: Lowe's may trim new store openings
An article on Monday in the Wall Street Journal questioned whether Lowe’s Companies, Inc. will trim the number of its new store openings because of the tight economy.
The cuts could come as a result of a decline in home sales and home remodeling projects during the past year.
Lowe’s has been named as the anchor store in a development proposed by D.J. Christie Inc. of Overland Park, at the northwest corner of 24th Avenue and Industrial Road.
A Lowe’s spokesman was not able to provide a response from the company by press time.
The Emporia-Lyon County Area Metropolitan Planning Commission will consider changing zoning of the property to retail development during a meeting tonight at 7 p.m. in the Little Theater at W.L. White Auditorium.
The land is surrounded by residential developments on the north and east, the water treatment plant in Dryer Park, and a nursing home and retail businesses to the south. The land currently is zoned for agriculture use.
Information about Lowe’s possible plans for store openings, the 2008 Analyst & Investor Conference, will be broadcast Wednesday on the Web beginning at 9 a.m. Central Daylight Time. The Webcast can be seen at www.Lowes.com/investor. Click on "Lowe’s 2008 Analyst & Investor Conference Webcast."
A replay of the conference will be broadcast shortly after the event and can be accessed at the same Web address; click on "Webcast Events."
According to a press release posted on the Lowe’s Web site, the company reported net earnings of $938 million for the quarter that ended on Aug. 1, 2008. The figure was down 7.9 percent from the same period last year.
Net earnings declined 12.1 percent to $1.54 billion for the six months ending on Aug. 1, 2008, while diluted earnings per share declined 8.7 percent to $1.05, the press release stated.
Sales for the quarter, however, increased 2.4 percent to $14.5 billion, up from $14.2 billion in the second quarter of 2007.
Comparable store sales for the second quarter declined 5.3 percent and declined 6.7 percent in the first half of 2008, the release stated.
In the meantime, dividends were $0.085 per share in August, and will be $0.085 per share during the dividend period payable on Oct. 31.
Dividends during the previous four quarters were $0.08 per share.
"Our sales results for the quarter, while better than our forecast, reflect the realities of the continuing macro economic pressures on our industry," Chairman and Chief Executive Officer Robert A. Niblock said in the release.
Niblock said that the second quarter sales had benefited from the financial stimulus tax rebates.
"Unfortunately, weakness in bigger ticket projects continues, particularly in markets most impacted by the housing downturn," Niblock said.
Lowe’s opened 23 new stores, bringing its total number of stores to 1,577 in the United States and Canada.
The news release predicted the company would open approximately 38 new stores in the third quarter of 2008, with total sales increasing one to two percent. The company expects comparable store sales to decline five to seven percent.
It projects a total of 120 store openings in 2008, with similar total-sales increases and store sales declines as those projected for the third quarter of 2008.
September 23, 2008 - Bonner, Wichita continue working with Christie
A sagging economy apparently has delayed a DJ Christie Inc. project at Bonner Springs, but city leaders remain optimistic that the retail development eventually will come to fruition.
Christie officials had looked at a 50-acre site in Bonner Springs for a retail complex with an anchor store that has not yet been announced to the public, community and economic development director Marcia Ashford said in a telephone interview this morning.
"We had even formed a TIF (tax increment financing) district," Ashford said. "It just came down to whenever they got all their figures in for site development costs, it was not going to work out."
Christie now is looking at a different site, containing about 15 to 17 acres.
"They’ve been a very professional group to work with. They’ve been very acceptable and up front with us, too," Ashford said. "... So, we’re pleased that they’re still interested in Bonner Springs and wanting to develop there."
The original retail development was to have been in an area near residential and commercial properties, similar to one under consideration now in Emporia. Nearby homeowners in Emporia have objected to the proximity of a major national retailer near the upscale residential area.
"But in our case, our residential subdivision is not having any issues with it," Ashford said. "They’ve (Christie’s) told them they’ll do some nice buffering. ..."
Houses near the planned development are "for the community, nice houses," she said. "They start around $250,000-ish up to $325,000."
Ashford said that the economy and the foundering housing market had affected progress on the development, though she anticipates a Christie project will come to fruition.
"I think a lot of retailers are really cutting back and kind of in a wait-and-see mode," she said. "We’re hoping that 2009 opens things up a little bit more and the ... entire economy turns around. I think that’s everybody’s hope."
In Wichita, one retailer — Home Depot — has canceled plans for a project at 47th Street South and Broadway, according to a June 29, 2008, article by business columnist Carrie Rengers in the Wichita Eagle.
The article stated that the sinking economy had caused Home Depot to close 15 stores and not move forward with plans for 50 new ones.
The store planned in Wichita was one of those canceled. It too was a project of DJ Christie Inc., of Overland Park.
Christie is buying back the 135,000 square feet of space from Home Depot, the Eagle reported, and Home Depot was to repay the $2.4 million in TIF money that had been associated with the project.
Home Depot received the TIF approval from the city to tear down the former Checkers and Big Lots buildings and clean up the area, which formerly was an oil field.
Wichita’s director of urban development, Allen Bell, was quoted in the article as describing the property as a worn-out old shopping center "and that’s one of the reasons why we have this kind of financing vehicle."
"The money came in the form of nonrecourse bonds that are property-tax-driven revenue bonds," the Eagle article stated. "That means if a building isn’t built and there are no taxes to collect, the investors who bought the bonds don’t have any recourse to get their money back."
Dave Christie, president and founder of DJ Christie, was quoted as saying Home Depot had no obligation to pay off the bonds, other than moral and ethical issues.
"Home Depot is writing a check for a lot of money to pay the bonds off so nobody is stuck with a project that doesn’t work," the Eagle quoted Christie as saying.
September 20, 2008 - Junction City, Pittsburg pleased with Christie work
Retail and residential development partnerships between development company D.J. Christie Inc. and Junction City have worked out well, according to Rod Barnes, city manager of Junction City. A former city manager at Pittsburg echoed Barnes’ reading of the relationship.
The company in Junction City has rejuvenated and developed an old Econo-Foods store and put in a new 600-unit apartment complex, The Bluffs, with one- and two-bedroom apartments, a clubhouse, fitness center and swimming pool.
"It’s one of the nicest complexes in the city," Barnes said.
Christie, led by company founder Dave Christie, currently is working with Emporia city officials on a commercial development proposed northeast of the intersection of 24th Avenue and Industrial Road.
Dealings with the company, he said, "all have been positive."
"He came in and took a closed Econo-Foods store and turned it into Goody’s Plaza," Barnes said. "... He did the original store and then he added on 10,000 feet. Did a great job."
The complex also contains a Hibbetts sports store, Sears and a beauty salon.
Barnes said that Junction City gave Christie a grant of approximately $1 million for the retail project.
"We gave him an economic development grant and, of course, to receive that grant he had to reach certain milestones, which he did," he said. "The milestones were meeting, making sure the tenant mix was what he said he was going to bring, having one major anchor. ..."
The grant came through a general obligation debt by Junction City, Barnes said.
A third proposed development, Smoky Hill Market Place, has not yet come to fruition.
It was to have been a massive entertainment and retail complex covering about 300 acres of land. Barnes said the proposal was to have 14 restaurants, baseball and soccer fields, a water park, theater, and 600,000 square feet of retail space.
The project had been in planning stages for several years and potentially could have used STAR bond for tax incremental financing, he said.
"He ran into problems with land acquisition and just wasn’t able to go forward," Barnes said.
The city has showed other locations to Christie and to other investors who may be interested in the project.
"We have some other people working on that," Barnes said. "Whether it’s Mr. Christie or someone else, it’s probably going to happen sometime in the community."
The City of Pittsburg had a similar experience with D.J. Christie, according to its former city manager, Allen Gill.
Gill was Pittsburg’s city manager until June of this year, when he accepted the city manager’s job in Carbondale, Ill. He was closely involved in a Christie development that brought a Home Depot to the city about 2 1/2 years ago.
Gill estimated the 28-acre project — Pittsburg Town Center — was 80 to 85 percent complete when he left Pittsburg.
In addition to the Home Depot, the City of Pittsburg Web site lists an assortment of businesses that occupy buildings on the fringes of the property — a rent-to-own store, Subway and Chili’s restaurants, a carry-out pizza business, UPS store and a Chinese restaurant.
"Then there were to be two what we call "junior anchor" stores, one of which was Goody’s clothing, and Goody’s was there and was open for two years," Gill said.
"Pittsburg, like anybody else, has been hit by the economy. We’ve had some major chains go out of business. Goody’s is one of them, and Goody’s has a store here in Carbondale."
Gill saw a number of positives that had come from the Christie development.
"One of the things that that center did for Pittsburg was bring in national-name retailers," he said.
The city had a JCPenney store on the other side of town in the Meadowbrooke Mall. Town Center brought businesses to the north side of the city and, in the process, "helped clean up an abandoned zinc and lead smelter site," Gill said.
"That was part of the reason for the TIF incentives that were given," he said. "It was a blighted area sitting on the doorstep of town."
The site formerly had housed an old Gibson’s store that had been converted into dollar stores and a plumbing shop.
"We relocated the plumbing supply store, so we salvaged them, relocated them across the street," he said. "They’re still in business, competing with Home Depot very nicely. So we ended up getting both."
Gill said that Pittsburg’s leaders had been concerned about the effects of a Home Depot store on existing businesses.
"The nice Ace Hardware store is still there and doing quite well," he added.
The city gave about $7 million in incentive money for the $28 million project.
With a TDD, the city extended a street through the development and installed new traffic signals at a major intersection adjacent to the property.
"There’s property to the rear that we wanted to develop some day, in addition. We’ve got another 40 acres behind it," he said, explaining the reason for extending the street beyond the retail area.
The extra 1-cent sales tax charged by businesses on the property is returned to the city to repay the cost of the TDD.
"They were paying what they needed to pay for," Gill said.
He added that D.J. Christie also has been looking at a second development in Pittsburg.
"He has bought some ground north of that area adjacent to our hotel developments, and was looking at some additional development north. At least at the time I left, that had not come together," Gill said.
January 7, 2008 - K.C. developer sells Nixa officials on IMAX
Matt Damon’s Jason Bourne character put Nixa on the movie map, and Damon’s future flicks could arrive in the Christian County town if a Kansas City development company has its way.
Overland Park, Kan.-based D.J. Christie Inc. intends to build a 12-screen movie theater, including an IMAX screen, on 27 acres along U.S. Highway 160. Details of the plan, at what would be the corner of an extension of State Highway CC, were announced Dec. 20 during a special Nixa Board of Aldermen meeting.
"They were looking at several different sites in different communities," Nixa Mayor Doug Marrs said of the D.J. Christie officials who have developed or are developing properties in four states, including the Pavilions West shopping center in Joplin. "We met with them several months ago, and we told them that we were interested in any type of development along these lines."
Marrs said that the developer considered several factors, including traffic patterns, demographics and property layout. A contract is in place to purchase the property, but Andy Mitchell, special projects manager for D.J. Christie, said the sale might take several months to close.
Mitchell said the company’s due diligence on the property should be completed within 90 days.
"It’s good visibility, there’s good access, and Highway CC coming through there is a plus," Mitchell said.
"Looking at the other properties down there, it was the best fit for the development."
The development
While the plans are still very preliminary, Mitchell said the idea is to have the 12-screen theater flanked by restaurant and retail tenants, though none have signed on for the development.
D.J. Christie plans to requesting tax-increment financing for the development. A TIF district comprises a geographic area where a certain increment of new taxes generated can be captured for identified capital projects. If approved, the TIF would be a first for Nixa.
"We’re extremely cautious on that note," Marrs said. "We have historically been concerned about multiple TIFs and what that would do to the local economy and competitiveness within the community."
He added that the city is considering the formation of a TIF committee to consider the financing option.
Should the theater development happen, it would be the first multiscreen theater in a Springfield bedroom community.
Officials with St. Louis-based Wehrenberg Theatres, which owns and operates Campbell 16 Ciné in Springfield, said they welcome another theater complex to the area.
"Springfield and the surrounding area is such a great movie-going audience that the market can hold more outstanding theaters," Wehrenberg spokeswoman Kelly Hoskins said. "Anything that perpetuates movie-going, we’re a big fan of."
Road improvements
The new theater could serve as the flagship development for a busy intersection when State Highway CC extends to U.S. 160.
Plans call for Highway CC to continue west of Lakeshore Drive, then turn to the south and back to the west before creating a T intersection at Highway 160, about a quarter-mile north of Tracker Road. The proposed theater development would flank both sides of CC on the east side of 160.
City Administrator Brian Bingle said the Missouri Department of Transportation has already approved the general shape of the road extension, and the city has sent out requests for proposals to design the road.
Bingle said the city is expected to finalize a contract with CJW Transportation Consultants at the Nixa Board of Aldermen’s Jan. 14 meeting.
Funding for the estimated $2.5 million extension would have to be local; Bingle said there is no state money for the project.
"In conjunction with the proposed development application, the developer and the city have suggested tying it to the TIF or creating a transportation development district," Bingle said. A TDD allows for extra property or sales tax assessments in a specified area to fund the building, planning or design of transportation projects such as new roads and bridges.
Bingle added that if the development were to fall through, the city would continue with its plans to extend Highway CC. Without either taxing district, however, funding would likely come from bonds approved by voters. That vote, he said, would not happen until the city’s current bonds expire in 2011.
"The project would most certainly be postponed," Bingle said. "I believe that in this case (the expansion) is certainly development-driven."
May 2, 2006 - Large Retailer Breaks Ground
The city of Harrisonville is growing closer to major expansion in retail options. Last week, city officials joined together with Sutherlands Lumber representatives to break ground and celebrate the beginning of the new Harrisonville location off South Commercial Street near 71 Highway.
"I’ve been through this town hundreds of times," said Mark Sutherland, manager of Sutherlands Lumber of Kansas City LLC. "To do a store here is a dream come true for me and my family."
Sutherland said the store was aiming for a fall completion date.
Sutherlands, consisting of about 104,000 square feet, will be the anchor for a larger development being planed by D.J. Christie Inc.
Developer David Christie, with D.J. Christie Inc., said in all it would take between one and a half to two years before phase one of the property is completely finished.
Phase one will include a 26,000-square-foot strip mall, Sutherlands and three out lots sized at about one acre to accommodate facilities such as restaurants.
At the ground breaking, developers emphasized the quality of the development, with will include landscaping such as shrubs, trees and bridges.
Mayor Kevin Wood said a lot of work has gone into the development planning s that it will not only improve the local shopping experience, but also be an attractive addition to town. "We’re excited to be here today," Wood said at the ground breaking. "It sounds like it’s a family dream and it’s certainly a dream for this community."
April 14, 2006 - Financing for 47th Street development
An Overland Park developer’s plan for a 21-acre development at the southwest corner of 47th Street South and Broadway goes back before the Wichita City Council Tuesday.
David Christie, a commercial developer with D.J. Christie, Inc., will ask for $1.5 million in tax increment financing for infrastructure, demolition, site work, parking landscaping and relocation costs.
He plans to replace the existing multi-tenant shopping center with a new 135,000 square foot Home Depot store and a 30,000 square foot retail center on the vacant land to the west.
Total development costs are estimated at $8.6 million. The development, Christie says, would employ 200 people at an estimated hourly wage of $12.
The action also will require the establishment of a redevelopment districted bounded by Water on the west, Broadway on the east, 48th on the south and 47th on the north.
This news article taken from the Wichita Business Journal
December 2, 2005 - Retail Portfolio in Midwest Trades Hands
The properties range in size from about 12,000 to 62,000 square feet, and include three centers in Illinois (Champaign, Decatur and Jacksonville), three in Indiana (Crawfordsville, Decatur and Huntington), three in Michigan (Benton Harbor, Owosso and Sturgis), two in Kansas (Chanute and El Dorado), and one each in Minnesota and Ohio (Little Falls and Mansfield, respectively).
"Though there are still fewer buyers in smaller markets than in major metro areas, there’s been a distinct increase in interest in secondary and even tertiary markets recently," said George Good, executive vice president in the Chicago office of CB Richard Ellis, which represented the seller in the deal. "Investors are recognizing that there are stable properties in these smaller places, some of them even offering slightly better returns than in larger markets."
All of the properties in the portfolio are of relatively recent vintage, built in the mid-1990s adjacent to Wal-Marts, though Wal-Mart developed and owned its own stores, which were not part of the sale. Since the properties were developed, the retail giant has expanded into supercenter concepts in six of the locations, and has relocated or announced a future relocation of four stores to develop supercenters elsewhere in the market.
The seller, Malan Liquidating Trust, was formed in August 2004 to sell the remaining assets of Malan Realty Investors Inc., a former REIT. Since that time, the entity has sold 46 properties for about $200 million. The buyers were partners D.J. Christie Inc., a metro Kansas City-based private investment group, and Block and Co., a Kansas City, MO.-based real estate firm.
This news article taken from the Commercial Property News website
March 27, 2005 - Finding a new home in Hays Kansas
An incentive package agreed upon between the city and the developer D.J. Christie of Overland Park to bring Home Depot to Hays was two-fold and totaled $3.6 million.
The first component of the package was a transportation development district bond issued temporarily by the city in the amount of $1.4 million.
The TDD bonds are to be used for the development of road infrastructure leading to the 30-plus-acre development site. This includes the construction of two streets leading to the development, Sherman Avenue and General Hays Road.
The second of its kind issued in Kansas, the TDD bonds, according to City Manager Randy Gustafson, are unconditionally guaranteed by Home Depot.
The development will showcase Home Depot as the major draw and will eventually include one other "big box" store and possibly four other retail stores.
Read the full article at The Hays Daily News
March 25, 2005 - Emporia to get big retailer
An Overland Park developer plans to create a big box retail development in Emporia, a real estate broker said.
DJ Christie, a broker/developer with DJ Christie Inc., of Overland Park, is coordinating the development of 35 acres or 1,250 feet of frontage, which is three city blocks at US-50 highway and Graphic Arts Road, said KB Thomas Jr., real estate broker with American Real Estate, of Emporia.
Thomas is representing the seller of the property, Thomas Enterprises, which is owned by his father, Ken Thomas, and brother, Jerry Thomas.
The deal hasn’t closed yet, Thomas said. It is zoned as industrial right now, and it has to be rezoned as commercial in order to make it happen, Thomas said.
A spokeswoman with DJ Christie said DJ Christie wrote a letter of intent to develop the land, but the sale of the land hadn’t closed yet. Attempts to interview Christie were unsuccessful Thursday.
Thomas said he didn’t know which retailers would be located at the development.
Christie was the developer of a Home Depot in Pittsburg that opened March 10.
Thomas said the Emporia development has good exposure to the Kansas Turnpike and Interstate 35 and U.S. highway 50.
He said plans with the stated and the Kansas Turnpike Authority are to realign the turnpike and bring a road into the frontage of the property, where there will be a roundabout, Thomas said. The realignment in summer 2006 will make the turnpike safer, he said.
Thomas said the development would be the biggest retail development in Emporia in 20 years.
This news article taken from The Topeka Capital Journal