Brick and mortar retail in Clifton Park and across the country suffered another gut punch with the announced liquidation of Toys R Us stores. The chain is closing up shop and with it, closes the chapter of another long standing retailer that could no longer remain viable.
Y2K was my first day in office. In the preceding weeks, a public announcement that Boscov’s was locating a store in Wilton was big news. During that time I could not confirm the deal was final so we pursued Boscov’s. What did we have to lose? The Clifton Country Mall(now the Clifton Park Center) had a tremendous amount of empty space and the exterior of the building still featured that circa 1970s orange hue. I remember taking Philip to the mall when he was very young. It was a decent option on a bad weather day. He could run through the empty halls past the vacated storefronts that once featured a string of recognizable names. There was nobody for a little kid to bother and he wore off some extra energy. Plus, you could always conveniently park next to building so no long walks through the inclement weather. The huge Builder’s Square building in the Crossings had been sitting empty for a while and Grand Union was on its way out of business. During my first run for office, I spoke of the need to revitalize Exit 9 and devise a plan for the future. At that time retail was our focus.
We then embarked on a public effort to court Boscov’s. Perhaps if we could show Mr. Boscov the community wanted his store in CP and we were serious about redeveloping Exit 9, he and his team would consider our community. The Town didn’t have a website to speak of at that time. Steve Bulger, who has recently accepted a federal position with the SBA, worked hard on the project. Over a short period of time more and more people wanted to join the effort. After a couple reams of your correspondence was collected and sent to Boscov’s, we received a kind thank you for your interest note. But, we did have the opportunity to show Mr. Boscov our interest and then we had the pleasure to meet with him on a couple occasions. Al Boscov passed last year. He was a wonderful person, a tremendous leader, an incredibly hard working individual and a visionary who built an incredible business. I learned a great deal from him.
We were thrilled when he called to tell me Boscov’s was coming to CP. The then owners of the mall changed the name of the property to the Clifton Park Center and invested some money in the property. Finally the orange was replaced with a more pleasant, although plain, corporate gray. Soon thereafter Target tore down the Builder’s Square and Kohl’s was moving into the old Grand Union space.
Fast forward several years and online shopping was growing exponentially each year. This snowball has continued to pick up steam running over any brick and mortar store that gets in the way. Facing the coming reality and when reflecting on the contingent of large stores in CP, it became clear we needed to move in a different direction from a retail “all the time, every time” thought process. This was difficult to face, since retail drives sales tax and offers services close to home. Every County and municipality relies on sales tax receipts and now we had to move away from retail and diversify the economy. To some extent it was counterintuitive, but a necessary move. Municipalities in Saratoga County participate in the County Sales Tax formula that shares tax receipts regardless of where the transaction takes place. The exception is Saratoga Springs, as the city decided to go it alone and leave the formula. Clifton Park was and is a major revenue generator for everyone in the County. Our economy has diversified, with hospitality and healthcare now playing a significant role in Clifton Park’s economy. And yes, sales tax is charged on hotel rooms so we could replace some lost revenue if less retail became a reality. We now generate substantial bed tax for the County. The other consideration is tax base. Clifton Park does not assess a General Fund Property Tax, but sustaining a municipality’s tax base when facing the reoccurrence of empty commercial properties is vital. We must retain and grow value to offset school taxes and other assessments.
As the economy began to diversify, it became clear we must face the reality of struggling brick and mortar retail with a new vision that would incorporate new segments of the business marketplace and follow the trends of capital investment. Our efforts to redevelop Exit 9 had been successful, but challenges remained. We began the Town Center Planning Process. During the planning process KMART closed, which validated the need to move this concept forward. Unfortunately, attracting new retail is very difficult in this business climate. Clifton Park is not a large population center where retailers “need” to locate. We have a limited universe of prospective retailers interested in locating in a municipality like CP. The status of brick and mortar retail has further limited the universe. We need to consider different business uses and building types to maintain our tax base and ensure we are prepared as the next evolution of Exit 9 occurs. We can be a victim of circumstances we cannot control or prepare for the inevitable evolution with a new plan that positions CP for success in the future. The Town Center had a number of goals including:
-improve aesthetics
-improve pedestrian access
-improve connectivity between entities and properties
-diversify the economy
-sustain the success of Exit 9
It is also true that a diversified and successful Exit 9, may assist us in retaining retail and attracting new opportunities in this sector. If Exit 9 reverts to its dubious status prevalent in the late 90s, nobody benefits.
The initial Town Center Plan reviewed the area west of I-87. We are now beginning the process of Phase 2, which will focus on the east side of I-87. One result of the plan was the allowance of residential, on a limited basis, in the Exit 9 area. Mixed use buildings that feature both business and residential uses is also allowable. For those living in the Exit 9 area, you have access to many retailers big and small, the library, YMCA, a new public area(former Shen Land), movie cinemas, many restaurants, gyms, healthcare options etc. Through the public meetings, workshops and charrettes we hosted through the Town Center Planning process, it was evident our community was very interested in this topic. We enjoyed a great deal of participation and the elements of the plan were based on your opinions and ideas.
When reviewing commerce areas in municipalities like CP across the country, there is likely one of two models- a regional mall model or a downtown. We believe we can have both. A successful and diversified mall property as well as the elements of a vibrant downtown. We know who we are and what we can be. We are not attempting to emulate any other municipality. Instead we believe we can blaze our own trail, proactively making the correct decisions for our collective future.
At a recent Saratoga Chamber event I discussed the time frame in today’s business cycles. It wasn’t long ago we spoke in terms of business cycles lasting 15 or 20 years. Now, business cycles are 5 or 10 years. In some industries less than 5 years. Each year there are new disruptions to legacy business models that are slowly struggling to adapt. We believe instituting changes and plans for the future from a position of strength is preferable to waiting for the inevitable downturn that occurs when doing the same thing you have always done. Decisions made in desperation or from a position of weakness are rarely successful.
Clifton Park and Beyond 