Denton to Brownwood: Is all "getting over our heads" local ! Grab a cup of " Joe " and read on ....

Posted on Mon, Sep. 04, 2006

A little help from the public
The man behind Arlington's town center has a history of getting tax incentives for his projects
By ANDREA AHLES
STAR-TELEGRAM STAFF WRITER

Successful town centers are supported by their towns.

And for Steiner + Associates, that often means public financing for roads, water and sewer lines and parking garages when the developer builds a new center.

That worries some Arlington residents as the Ohio development company works on plans for its multimillion-dollar Glorypark town center, the big mixed-use project planned by Steiner and Texas Rangers owner Tom Hicks.

Although the firm has not officially asked Arlington for public financing, Yaromir Steiner acknowledges that his projects usually involve public incentives. He said they do so because they require utilities and parking facilities that are significantly more expensive than the typical mall development and because they create public green spaces.

"People sometimes think that the public help makes the developer richer," Steiner said in an interview Friday, adding that the types of incentives his developments receive can only be used on public infrastructure. "These types of projects will not work without public help."

But some Arlington residents are concerned that city leaders might give Glorypark tax incentives without any public discussion. Under state law, economic development deals can be discussed and negotiated behind closed doors.

Deborah Gagliardi, an architect who ran for City Council last year, said Steiner's previous projects haven't lived up to their hype.

Gagliardi, who will make a presentation on Steiner's older projects to the City Council during the open session Tuesday night, said she does not oppose new developments. Rather, she says, she wants developers to assume considerable risk.

"The city should not be in the business of owning retail space," Gagliardi said. "The developer needs to have an equal amount of equity in the project as the city."

Glorypark will be a multiphase retail, residential and office complex between Ameriquest Field and the new Dallas Cowboys stadium. Hicks has said the partnership could spend close to $1 billion to build 5 million square feet in the next 15 years.

Steiner, who has been a developer with partners on numerous projects in the Midwest, Southeast and Northeast, said his projects get tax incentives because they are helping communities create or redevelop town centers.

Some of his projects have fared better than others.

His premier project, Easton Town Center in Columbus, Ohio, is a popular shopping and entertainment center. In New Jersey, where he used public money to expand the state aquarium, Steiner is building the first privately financed building on the Camden waterfront in decades.

But two of his eight projects have not been as financially successful as the others: Centro Ybor in Tampa, Fla., and Newport on the Levee in Newport, Ky., near Cincinnati.

The Centro Ybor retail center hasn't attracted enough visitors and in the past two years has missed $1.5 million in payments on a $9 million loan from the city. Steiner has since sold his 25 percent share of Centro Ybor.

Occupancy at Newport on the Levee dropped below 75 percent in 2003, and parking lot revenues were unable to fulfill bond payments on the project. The project also went through several ownership changes. Steiner sold his interest in the shopping and entertainment complex in 2005. City officials in Tampa and Newport did not return calls for comment.

Steiner said all of his projects except Centro Ybor had public financing deals where the project's added property taxes were funneled back to pay for its infrastructure needs. The taxes often paid off bonds issued to finance road construction, water and sewer lines and parking garages within the projects.

For example, the city of Glendale, Wis., a Milwaukee suburb, issued $43 million in bonds to pay for infrastructure improvements to Bayshore, a 1950s-era mall that Steiner was redeveloping for retail, residential and entertainment uses. Those bonds are being paid back with the taxes generated from the increased property value of Bayshore, said city administrator Richard Maslowski. And to protect itself from defaulting on the bond payments, the city's agreement with Steiner states that Bayshore will be valued at no less than $320 million in 2008, the first full year the project is open.

Although there were some cost overruns on a parking garage the city built for the project, Maslowski said Steiner agreed to pay the extra construction costs and worked with the city to resolve any issues that arose during construction of Bayshore, which will open in November.

Steiner "actually delivers the project and the quality and the quantity that he said he was going to do," Maslowski said.

Mark Robbins, a professor of public policy at the University of Connecticut, said tax-supported developments are becoming more common with very large projects, such as these town centers.

Some of those projects are good for cities, while others don't work out as well, he said. But Robbins added that governments should be cautious about giving out tax incentives if they can't measure the real benefits of a project for their community.

City leaders have said Arlington would help pay for Glorypark's infrastructure needs, most likely with a tax increment financing district. Councilman Robert Rivera said that tax incentives are a tool the city uses to attract new business to Arlington and that a project like Glorypark will add to the city's tourism.

"In the same way the city of Arlington was proactive in publicly supporting the ballpark and the future Cowboys stadium, it's in Arlington's can-do spirit that we look at every economic opportunity to enhance our economic engine," said Rivera, declining to comment specifically on the Glorypark project.

Dale Attebery, a former city parks board member, said the city should not give any private developers tax incentives, particularly since real estate developers traditionally have not received public financing deals. For example, Attebery said, home builders usually build subdivision streets at their own cost before giving them over to the city for public use.

"I am concerned that we are getting over our heads on so many tax-supported issues that at some point in time, it is going to create a great deal of financial difficulty for Arlington," Attebery said.

Steiner said his "record is on the table" and that his projects, so far, have generated significant taxes and created jobs for their communities.

"If we have one reputation, it is to always deliver more," Steiner said. "We always under-promise and do much better projects."

Glorypark

Yaromir Steiner has not asked Arlington for public financing, though his projects often use it. The planned $1 billion office, retail and residential town center will be built next to Ameriquest Field.

Columbus, Ohio

Easton Town Center, a retail and entertainment complex being developed by Steiner, has over 170 tenants and attracts millions of visitors each year. From 1998 to 2004, it generated $8.1 million in property taxes to cover the city's bond payments.

Camden, N.J.

Steiner was hired to renovate and expand the state-owned aquarium, and completed the work last year. This summer, Steiner broke ground on the Ferry Terminal, the first privately financed building on the Camden waterfront in decades.

Newport, Ky.

Since it opened in 2001, Newport on the Levee has struggled to maintain occupancy and has had several owners. Steiner sold his stake in 2005 but still operates its centerpiece, the Newport Aquarium, which recently spent $4.6 million on an expansion.

Andrea Ahles, 817-548-5523 aahles@star-telegram.com

source: http://www.dfw.com:80/mld/dfw/15437219.htm
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Posted on Mon, Sep. 04, 2006

BATTLE FOR FRY STREET
Residents, others team up to try to persuade developer to renovate, not raze, buildings
By HEATHER ANN WHITE
STAR-TELEGRAM STAFF WRITER

DENTON -- Almost 7,000 people have signed a petition to save an eclectic area of restaurants, coffee shops, bars and shops just north of the University of North Texas.

The Save Fry Street coalition has collected signatures from students, residents and other supporters since members learned in May that United Equities Inc. of Houston had purchased a beloved block of Fry, between West Hickory and West Oak streets, with plans to demolish much of the strip and add new storefronts.

The coalition plans to present the petition to the Denton City Council on Oct. 3, but members doubt that they'll be able to help business owners who have already been evicted or who may eventually be relocated. "It just makes me sick," said Ashlie Adams, 22, a senior who is studying art at UNT. "It's taking away from the college town. Part of Fry Street's charm is that it's old. There's lots of history. It's so rich in college atmosphere. They take that away, and the kids aren't going to come."

Little is known about what United Equities plans for the strip.

A preliminary site plan filed with the city early this year shows that the developer proposed replacing the strip center with "University Town Center," a project that would include six buildings with parking in the rear, bricked walkways and a north-south through street.

Business owners said the developer has evicted two businesses. The Cool Beans bar, which occupied two spaces in the strip center, was to vacate one of those spaces by Friday. Mr. Chopsticks must be out by the end of the month after winning a 30-day extension, the restaurant's owner said. Other businesses, including coffee shop Uncommon Grounds and clothing store Alter Ego Vintage are gone.

Buster Freedman, United Equities president, could not be reached for comment. Tim Sandifer, the company's vice president of acquisitions, development and leasing, said final plans should be filed within the next month. "We are very enthusiastic about this development and will be pleased to share this information when it is finalized," Sandifer wrote in an e-mail.

Mike Cochran, a Save Fry Street member and former Denton councilman, said he met with Freedman this year and spoke with the developer about possible retailers for the strip, including a CVS pharmacy and Starbucks coffee.

The coalition's mission is to encourage Freedman to renovate some structures rather than raze them, Cochran said. Fry Street has been around since the early 1920s, though its buildings have not received historic designations.

"Looking at trends around the country, they build new buildings that look like fake 1920s commercial centers," he said. "It seems to me sort of wasteful and unnecessary to tear down something perfectly good and rebuild something fake in its place."

Cochran said coalition members have tried to point out options to the developer.

"Being from Houston, he didn't understand the community well," Cochran said. "It seems like he hasn't done his homework. We've tried to let him know what it means to the community."

The president of the Denton Chamber of Commerce, however, said there may be a better use for the area. Fry Street doesn't generate as much tax revenue as other Denton developments, such as the Golden Triangle Mall, said Chuck Carpenter, chamber president. "We recognize its attractiveness in terms of a hospitality destination," Carpenter said. "This is not a dis of Fry Street. I just don't know if you can view any of that as significant."

Some business owners are making adjustments to survive.

Numchai Tamprateep, owner of Mr. Chopsticks on Hickory, plans to move out by Sept. 24. Freedman offered him space in a new building, Tamprateep said, but with a 600 percent increase in rent. Instead, Tamprateep plans to move temporarily to Quick Stir -- his second restaurant -- on Scripture Street about a block away. He'll reopen Mr. Chopsticks when a new building at 1115 Hickory St. is complete.

"I'm pretty sad," said Tamprateep, whose restaurant had operated in the same spot for 22 years. "I have a good customer base. They've been loyal and good to me. I hope they follow me."

Robert Slusarski, owner of The Tomato, is nearly certain that United Equities will ask him to relocate the pizza restaurant, which also has operated in the same location for 22 years. He said that he has been in contact with the developer, but that plans have not been finalized.

"I'm upset," Slusarski said. "As far as I know, they will be tearing down the current building. I don't know where I'll be, but that's my main source of income. I don't want to close."

Martin Bruno, owner of the Cool Beans bar, said he was shocked when he was served with an eviction notice in early August. His bar has been open for 12 years and spans two spaces in the strip center. He plans to scale back into a smaller, original space, which will not be affected by the construction.

"I hate losing my portion of the building," he said. "But I do understand what Freedman's trying to do. I'm not either for or against it."

The change is disconcerting for Liesl Lipford, a junior German major. She favors a cleanup of the area, but she said students don't want a mass-marketed or corporate area.

Lipford, who lives on Hickory Street, said the area is a second home given the amount of time she spends at its coffee shops and restaurants. She compared the area to Sixth Street near the University of Texas at Austin.

"We look at things differently. We don't want them making everything cookie cutter. These places are staples," the 21-year-old said. "I am going to be sorry to see these places go."

ONLINE: www.savefrystreet.com

FRY STREET REDEVELOPMENT

Denton residents organized as the Save Fry Street coalition are collecting signatures on a petition to persuade a developer to preserve the character of a strip known for its eclectic group of retail shops, restaurants, bars and coffee shops. The area includes the 1100 block of Fry, Hickory, Oak and Welch streets.

Affected businesses are:

Mr. Chopsticks

The Tomato

Texas Jive

Naranja Cafe

Bagheri Italian

Restaurant

Spirit Station

Java Flakes

Uncommon Grounds

Treasure Aisles

Bottoms Up

Talon Comics Shop

Cool Beans

SOURCE: www.savefrystreet.com, Star-Telegram research

Heather Ann White, 817-548-5400 hwhite@star-telegram.com

source: http://www.dfw.com/mld/dfw/news/state/15437123.htm
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Starbucks puts lid on runaway coffee freebie

September 1, 2006

BY SHAMUS TOOMEY Staff Reporter
A free iced coffee e-mail campaign at Starbucks that was meant to be small instead turned grande when someone changed the coupon's wording and spread it online, forcing the chain to kill the promotion.
The e-mail coupon was originally distributed Aug. 23 to "a limited group" of employees in the southeast part of the country. They were encouraged to send it to friends and family, the company said.
But the coupon's wording offering a free iced coffee was altered to allow for any iced drink, including the pricey frappuccino. Soon, it had been spread to hundreds of thousands of people nationwide.
The coupons hit Chicago stores in recent days. At one downtown Starbucks, 60 coupons were cashed in Tuesday, workers said.
Because the original promotion was valid, the "113" code on the coupon was accepted by cash registers at the chain.
Validity debated
Starbucks pulled the plug late Tuesday, saying the promotional e-mail "has been redistributed beyond the original intent and modified beyond Starbucks control."
Before then, people around the country debated online whether the coupon was valid or not.
"To all you non-believers: ive had 3 cups of free iced coffee today, and one free frapuchino," a spelling-challenged person in California wrote on the digg.com Web site.
Another retorted it was obviously a fake coupon, writing: "Want me to make you one that gets you free hot coffee too? How about a free happy meal?"
Starbucks employees here said customers have taken the end of the free ride in stride.
"People figured it was too good to be true," a barista said.

stoomey@suntimes.com

source: http://www.suntimes.com/output/news/cst-nws-scambucks01.html
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Starbucks Coupon Update:

Friday, September 8, 2006 · Last updated 3:38 p.m. PT

Starbucks sued in NYC over canceled freebie coffee coupon

By SAMUEL MAULL
ASSOCIATED PRESS WRITER

NEW YORK -- Starbucks Corp. was sued for $114 million Friday over its recall last week of a coupon that entitled the holder to a free large iced drink being promoted by the giant Seattle coffee retailer.

Peter Sullivan, the lawyer who sued on behalf of a 23-year-old Starbucks regular who felt "betrayed" when her coupon was not honored, accused the company of fraud and said he will request class-action status to include the "thousands who were misled" by the offer.

On Aug. 23, Starbucks e-mailed the coupon for the free grande drink to selected employees with instructions for them to forward the coupon to friends and family. The offer was valid through Sept. 30.

But, Sullivan said, Starbucks got jittery and refused to honor the coupon after the company saw how widely it had been distributed. "I believe they were surprised by how successful the promotion was," the lawyer said.

"The excuse proffered by Starbucks, that they did not believe that an offer released over the Internet would be so widely distributed, is ridiculous," Sullivan said. "Clearly, Starbucks chose to initiate a viral marketing campaign to counteract their slumping sales."

A spokeswoman for Starbucks said company officials had seen Sullivan's press release but not his court papers and would have no immediate comment.

Sullivan said he saw lines of coupon-carrying caffeine customers outside Starbucks coffee shops in New York in response to the promotion, and when they could not redeem the coupons "they felt let down and angry."
One of those people, Sullivan said, was his client, Kelly Coakley of Queens, who works as a paralegal and administrative assistant in another Manhattan law office.

The $114 million the lawsuit asks for approximates the average cost of one cup of Starbucks coffee a day for all of the people turned away for the 38 days the offer was valid, Sullivan explained. "That's a very conservative figure," he said.

He did not explain how they determined how many people had tried to redeem the coupon.

source: http://seattlepi.nwsource.com/local/6420AP_NY_Starbucks_Sued.html