Published: September 07, 2008 12:03 am         

Local developer: Enid must clean up for its economic life

Higher fuel prices are changing the paradigm of retail sales in non-metro communities, but can a regional retail center like Enid take advantage of that coming re-ality?

Local developers and business leaders believe Enid can maintain and grow as a regional retail hub, but challenges must be met.

Longtime developer Bob Berry thinks some things need done to position Enid for retail growth, and he isn’t shy about telling people his ideas.

But Berry, chairman of a Greater Enid Chamber of Commerce committee studying what to do with empty big box stores, is convinced a main priority has to include cleaning up the city along the main entrance to Enid:U.S. 412.



Stopping the spread



Berry has been promoting cleanup in Enid for many years. In the last two years, Enid City Commission has committed resources to doing just that.

Berry said all unsightly areas of the city need maintained, but more needs to be done than just marking areas for improvement.

By improving unsightly and dilapidated areas seen from East Garriott, or 412, Berry thinks it will encourage businesses to develop the older parts of Enid, which would help build up those areas. By doing that, the city can in-fill and use existing infrastructure, rather than continue to spread out.



Future’s not looking good



In spite of Enid’s resilient economy, national and global business strategies will shape Enid’s retail community and 40 percent of its income, Berry said.

The effect on Enid from an expected national retail reorganization could result in a loss of 100,000 to 200,000 square feet of retail and restaurant space in 2009-10.

Some will be small tenants, but he expects a number of the “big box” retail space to go away, along with stand-alone casual dining. Just this week national chain Steve & Barry’s announced it will close its Enid location in Oakwood Mall.

“National and regional retail directors will meet from November 2008 through January 2009 to determine the direction they will go. Before they meet, the regional managers will travel to each site to size it up for any future action after year-end sales are tabulated,” he said.

Those regional directors will tour their areas of responsibility prior to that meeting, and Berry is concerned about what they will see in Enid. Everyone’s first impression of Enid is seen from U.S. 412, he said. That area along East Garriott contains some older, dilapidated structures that need demolished.

Berry is concerned if those regional managers see unattractive or “junky” looking areas, they will report Enid is not the type of town for stores that sell high-end items.

“Enid doesn’t look like it fits higher retailers,” Berry said. “Cleanup has to do with refinancing basic infrastructure. Cleanup is a basic economic issue, I’m not just doing it to make people mad,” he said.



Local economy stable now



Brad Blankenship, president of Security National Bank, said real estate and new construction still are strong in Enid, which equates to homeowners purchasing high-end appliances, like washers and dryers and refrigerators, and other big ticket items. That equates to improved sales tax revenues.

The Enid real estate market remains stable, and custom housing construction continues.

Blankenship sees one issue that could be dangerous down the road — the mortgage crisis on the east and west coasts. He said there has been a tightening of the secondary mortgage product, which may result in first-time homebuyers or those with no established credit running into problems qualifying for a home loan.

Credit scores have been raised to 680 and above, which could be a problem for young people because they do not have the benchmark credit score.

Blankenship said the loss of Steve & Barry’s is a problem for Oakwood Mall, and he said there may be some overbuilt space, but he does not agree on the extent of it.

“If you drive down the street and see Applebees and Chili’s, their parking lots are full every evening,” he said.



Fueling the concern



Blankenship agreed gasoline prices may change the way people do things. He said there are single mothers working at the bank who have adjusted their lifestyles because of higher gas and grocery prices.

At Greater Enid Chamber of Commerce, Blankenship’s cousin, Jon Blankenship, partly agrees.

“There is a cost threshold where the cost of gasoline will create a decision-making process for people. It stands to reason people taking vacations are altering their behavior and staying closer to home. That could easily enter into shopping at home and not going to Tulsa or Oklahoma City,” he said.

That would be good for Enid in the sense businesses like to capture more of the retail sales dollar.

“There is a sense we are over-retailed and need to use existing space. Some of it can continue to be retail but others may have different uses.That approach is better than to continue to grow west and promote urban sprawl,” he said.

Blankenship said retail areas in disrepair may be candidates for demolition or renovation for retail or other purposes, all to promote in-fill.



Competition to the south



Berry believes Enid can position itself as a retail hub, and there is plenty of existing empty retail space to accommodate retailers.

If no serious action is taken, the city of Enid could face serious risks, he says. Enid only encompasses 16 of the 99 types of prime businesses subject to taxes and only seven traditional retail categories generate more than 70 percent of Enid’s total sales tax.

Berry believes the biggest predator to Enid will be an expanded Quail Springs Mall in Oklahoma City. The state’s capital city is a major destination, and he said they are attacking the entire state to obtain bigger chunks of primary trade area.

Berry believes new retail or restaurant construction in Enid will hurt, not help. He believes the town already has too much retail and restaurant space. Further dilution of sales in existing stores causes them to close, losing “brands” and creating empty boxes.

The idea, he said, is for people to get more of what they want to buy and increase the number of brands available, not retail space. He likened it to an economic Marshall plan.

Berry said with improvements to Oklahoma 74 leading into Oklahoma City, “Enid and all areas north are now vulnerable, which is why Oklahoma City is promoting improvement of that highway.”

However, he believes $4 per gallon gasoline may reduce travel.



Getting out the good news



Enid has a good story and needs to report it by the end of the year, he said. Among the good things happening:

• Enid retail sales are up 8.11 percent in the first six months of 2008.

• As over-built as Enid retail may be, Enid is not as bad as elsewhere.

• Enid is in the strong Oklahoma City media market so advertising in Enid is affordable.

• Enid rent and occupancy costs are low, even after major rent concessions in big markets.

Enhancing Enid’s image in its traditional west market and a potential east market will help.

It’s time for Enid to “quit acting and talking like a loser,” Berry said.



The highways, byways



There are several things the city can do for promotion, including publishing retail sales data to make people understand Enid is not in a recession

Berry also promotes privately funding an Enid Community Foundation account for tax deductible cleanup work focusing on dead tree removal, demolition, clean up and painting. Those should be completed as much as possible before spring green-up, he said.

Areas needing attention first, he said, are Garriott from Farmland east of Enid to Wal-Mart on the western side. He recommends completing that by the end of March. Also, Grand and Independence streets from Garriott to Maine need cleanup work completed by the same time.

Berry recommends demolition of 102 E. Garriott, which is owned by the city. He also recommends forced demolition of several properties visible from Garriott, with economic assistance, and privately funded permanent maintenance. Some owners cannot afford to do what needs to be done to their property and need financial assistance, he said.



A thorn in their side



Enid city commission is talking with Enid/Garfield County Industrial Alliance about how to finance increased staff and possibly split the community development and economic development arms of the foundation.

Berry also encourages the city of Enid and OG&E Electric Services negotiate an agreement to bury remaining utility lines on Garriott.

He promotes hiring a retail consultant for 2009, following in the footsteps of Altus and Oklahoma City’s Bricktown and Mid Town.

Other recommendations include eliminating or better defining restraints to retail, restaurants or hospitality space. Berry likes the more flexible airfield environs ordinance passed by the city commission re-cently. That ordinance provided some flexibility to a strict air space protection ordinance passed for Vance Air Force Base.

All this should be done to determine Enid’s trade area and define targets of improvement. Inventory of other cities’ successful strategies could be effective here, Berry said.

He also promotes facilitating conversion and revitalization of empty big box retail space, which recently has been noted by Atwoods purchase of the old Wal-Mart building, St. Mary’s Regional Medical Center’s plans for the old Homeland store and Varsity Square.

Those are the tip of the iceberg of Ber-ry’s list of ways to improve Enid. And he said he plans to continue to be a thorn in the side of Enid officials until someone listens.