Coffee Talk

Coffee Talk

+ Beall's to ring the bell

for a new battle

Steve Knopik, chief executive officer of Bradenton-based retailer Beall's, is finally talking about the K-word.

And it's not his last name. Instead, Knopik is talking about the threat posed by Kohl's Corp., the Menomonee Falls, Wis.-based department store chain.

Kohl's, which is one of the most similar to Beall's in the department store segment of the retail industry in terms of layout, merchandise and price points, is planning to open nearly 50 new stores nationwide Oct. 4, including nine in Florida. One Kohl's is planned for Naples, while another store is scheduled to open in eastern Manatee County, a few miles from where one of the more popular Beall's is located. Kohl's currently has 23 stores in the state, compared to the 75 Beall's in Florida.

Knopik and several other Beall's executives rarely discuss Kohl's, either in public settings or in media interviews. Not because they are intimidated by the chain, but for differentiation purposes: Beall's has spent years marketing itself as the preeminent Florida lifestyle store, something it says a national giant like Kohl's can't duplicate. (Beall's outlet stores operate outside Florida, while its flagship department stores, a separate business unit, operate exclusively in the Sunshine State.)

But Knopik, speaking recently at a breakfast meeting sponsored by the Economic Development Council of Manatee County, spoke openly about Kohl's. His comments were prefaced by stating that overall, Beall's isn't likely to grow revenues much, if it all, in 2008. The company, which reported $1.2 billion in 2007 revenues, has grown revenues just about every year the last decade.

"The entrance of Kohl's into the marketplace is a new challenge for us," said Knopik, one of six panelists at the EDC's annual economic performance update.

And this challenge comes on top of the one facing nearly every other retailer: how to prosper in the non-prosperous economy. At Beall's, says Knopik, the strategies the company is undertaking include reducing risk in trying new and unproven ideas, slowing investment in equipment and new ventures and making expense-control a top priority.

But like Coke to Pepsi, Knopik says he's confident that Beall's troops - in a competition-makes-you-stronger kind of way - will respond with a top-notch effort in any ensuing market share battle with Kohl's. Says Knopik: "We're better because they are here."

+ Gulf Coast builders' group

looks to hire new leader

The Gulf Coast Builders Exchange, a prominent lobbying and networking group for contractors, builders and developers in Sarasota and Bradenton, is looking for a new leader after severing ties with longtime Executive Director Jay Brady.

Brady, a well-known voice in the construction and development circles, was let go Aug. 19 after several board discussions on his tenure during the past few years, Coffee Talk has learned.

Plus, the exchange's board chairman, Doug Sutter, vice president of Sarasota-based Sutter Roofing, says the organization is seeking a fresh face as it moves into a new headquarters in Lakewood Ranch early next year and begins to expand its membership reach to Charlotte and DeSoto counties.

The exchange, a nonprofit organization made up of 450 members, has formed a special executive search committee to find a replacement for Brady. It is accepting resumes through Aug. 29.

"We had become a little stagnant and our efforts as an organization were going down," says Sutter, who added that he and the board thought Brady had done an excellent job guiding the organization through this year. "We want to be the voice of the construction industry and we want that voice to be heard."

To many in Sarasota and Bradenton building circles, Brady's voice was a booming presence over the past decade, at once zealous for the cause and tireless in understanding the details of an issue. He had been with the organization 14 years and there was one constant for much of his tenure: A passionate defense of the belief that less government intervention translates into a more robust development industry, which in turn boosts the region's economy.

Sutter, though, says the majority of the board thought Brady was almost too opinionated at certain times. Says Sutter: "We feel we need someone who can work closely with politicians and can be more flexible and bend, while still sticking to our mission."

Reached at home Aug. 20, Brady told Coffee Talk he was disappointed in the board's decision. He says one of his proudest accomplishments with the organization is that he leaves it in the best financial position it has ever been in, even considering the current market slump.

"I've got things I want to do," says Brady, "and they've got things they want to do."

Brady, who interned for Sarasota County's planning department while a University of Florida undergrad in the 1970s and later served as planning director for the town of Longboat Key, was ambiguous about his future plans. He says they include writing, consulting for county governments and builders on impact fee issues and working on some political campaigns.

Brady takes the "never-say-never" approach to running for elected office on his own one day.

+ Wiregrass bucks

retailing trend

At a time when many retailers are slowing down or stopping expansion, and when some developers are delaying retail construction, The Shops at Wiregrass in Wesley Chapel is bucking the trend.

Pottery Barn, Williams-Sonoma, Cantina Laredo, Brass Tap and Yamato Japanese Steak House are among the newly announced tenants joining a roster that includes Barnes & Noble, Brighton, Chico's, Coach, J. Jill, Talbots, White House Black Market, Victoria's Secret and GrillSmith.

So how have developers Forest City Commercial Development and The Goodman Co. done this?

By finding a good location and knowing retailers.

"The slowing economy has not impacted the leasing efforts at The Shops at Wiregrass, as retailers and restaurants continue to see the long-term value of entering this market," says Keith Brandt, vice president for retail leasing in the east region for Forest City.

"The ideal location, coupled with Forest City and The Goodman Company's relationships within the retail community, has attracted three major department stores into this new development," Brant told Coffee Talk.

The 800,000-square-foot, Main Street-style outdoor shopping center at state Road 56 and Bruce B. Downs Boulevard is scheduled to open Oct. 30.

Other retailers there include American Greetings, Aveda, Brass Tap, Brown Shoe Closet, Cacique, Cantina Laredo, Christopher & Banks, Hollister, Hot Topic, Juice Zone, Learning Express, Limited Too, Pottery Barn, Put a Cork in It, Stride Rite, Williams-Sonoma and Yamato Japanese Steak House.

It is anchored by Dillards and Macy's, as well as JCPenney, which opened in 2005.

The shopping center is only a few miles from two other large new, open-air regional retail developments emerging in New Tampa/South Pasco County: Cypress Creek Mall on State Road 56 and The Groves on State Road 54.

+ Opus also hopes

to buck retail trend

As Wiregrass continues to lease up its retail space, the Tampa office of Opus South is quietly planning a $160 million retail development of its own, in Tampa's Westshore area.

Opus is in the early planning stages for a multi-story 600,000-square-foot retail development with parking decks at Cypress Street and Dale Mabry Highway called Midtown Tampa Bay.

John Flavin, vice president for the Florida Region for Opus South, told Coffee Talk that when the original plans for an office building didn't take shape at that corner, his retail staff approached him with a multi-level project similar to Dadeland Station in Miami. Flavin stressed that the project was still in the planning stages.

Opus South recently visited the International Council of Shopping Centers convention in Kissimmee to gauge interest for Midtown. Flavin could not reveal the names of the retailers interested in the project. But he did say they were "big box" stores, such as Best Buy or Barnes & Noble.

+ Need to cut costs?

Check your assessment

Tampa attorney Jim Soble offers a reminder for chief executives and chief financial officers at this time of year: Check the assessed value of your property.

At a time when governments are looking for continued and additional sources of revenue, property assessments, used to figure out taxes, are one way to recover funds.

However, the value of many properties has declined.

"Business property owners need to review their TRIM notices to make sure the market values are in line," said Soble, administrative partner with Ruden McClosky's Tampa office.

Because Jan. 1 is the valuation date on the notice, the market value of some properties may have decreased since then. So some businesses should challenge the county on the assessments.

"We've done many over the years," Soble says. "There's been some significant adjustments. Some of those were commercial and condo conversion projects."

Soble expects even more de-valuation his year. The challenge process can take four to eight weeks. Soble says the county staffs cooperate with businesses to arrive at an accurate assessment: "It's not adversarial. We did a couple last year that were very amicable."

+ Correction

A real estate brief in the Review's Aug. 8 issue contained an incorrect name. It should have read: "The purchase entity Seaside Resort Holdings LLC mortgaged the Seaside Inn & Resort to 1st Manatee Bank for $2.36 million."