Mixing the Bay Center retail stew

Wayzata retailers who largely favored the redevelopment of Wayzata Bay Center are preparing for a reshuffling of retail in the city.

Roughly six of the 18 retailers in Wayzata Bay Center are considering being a part of the new Bay Center, according to Ed Briesemeister, managing partner of Wayzata Bay Redevelopment Co.

At least another two businesses near the Bay Center are considering being a part of the redevelopment.

Retailers will likely firm up their plans in the months ahead.

The retail situation was compared to a Rubik’s Cube by Briesemeister.

“We expect to resolve this with the tenants over the next month or two,” Briesemeister said.

Last year a retail study by McComb Group, Ltd. confirmed the fears of many of a decline in Wayzata’s retail climate. Supporters of the Bay Center redevelopment regularly predicted that a new Bay Center would be successful CPR for retail in the city.

But construction comes first.

Bay Center retailers are watching each other while deciding how long to stay open there during construction.

Some retailers could be swayed into closing earlier if a large number of them decide to close up shop during construction due to the possibility of decreased shopper traffic. But having many of the stores in the mall stay open is another possibility.

“This holiday season is such a question mark, that a lot of the retailers here are going to get through the holidays and then size up” their plans, Briesemeister said.

Mark Lindblom, owner of Lindblom Jewelers, said it’s likely the business will be in the new Bay Center.

“We would love to have the store of our dreams, so to speak, in this new location. They’ve actually got spots in mind for us,” Lindblom said.

He also put the chances of the store staying in the Bay Center during construction at 90 percent, but said it depends on what other retailers do.

“If enough businesses decide that this mall is not a viable mall anymore and we get enough businesses that don’t stay, then it won’t be a viable place for us,” he said.

Construction on the east block on Lake Street is planned to start in the spring of 2009 at the earliest, if the anchor tenants for the hotel and office portions of the east block are still on board, Briesemeister said.

There hasn’t been any indication from either about a change of plans, he said, though apartments could be a backup plan if the hotel deal falls through.

The west block is planned to be started a few months later than the east, he said, to provide extra time for the condo market to improve.

“The thought has been all along that we would sort of bridge the recession by building during that period, building that phase one. To date we really haven’t had to change our plans,” Briesemeister said.

The deadline for starting construction on the east and west block is June 30, 2010.

Bob Fisher, owner of Bob’s Shoe Repair, said he’s planning on having his business be part of the new Bay Center, a project he said is the best thing to happen to Wayzata in 100 years.

“For those of us that decide to tough it out or wait it out it’s going to be a good deal. I’d love to be able to stay right here until they have my place built. But even if that doesn’t happen it’ll still work out,” Fisher said.

Don Colpitts, owner of Picture This…Framed, would only say that he’s still considering relocating to the new Bay Center.

The Foursome is also expected to be in the new Bay Center, Briesemeister said.

Steve Youngstedt, CEO of Youngsted Cos., said the company has a purchase agreement for a Shell station that would allow it to move Youngstedt’s Wayzata Goodyear to Wayzata Boulevard between Central Avenue and Superior Boulevard. The company is pursuing that option while keeping open the option of being part of the new Bay Center. Youngstedt said the company has been welcomed by the developer, but that a spot there would probably be out of the company’s price range.

“Banking’s pretty tough right now and if we get our financing through and get it in a way that’s affordable to do, we’ll probably go forward with the Shell station,” Youngstedt said.

He said the Planning Commission meeting for the proposal is scheduled for Dec. 15.

“We’d like to say in the Wayzata area,” Youngstedt said.

Retail rents in the new Bay Center would be comparable to businesses on Lake Street, at an average of about $32 a square foot, Briesemeister said, compared to rents at the current Bay Center that range anywhere from $5 to $27 per square foot.

The city of Wayzata is still considering the new Bay Center as a site of the Wayzata Bar and Grill and the city’s municipal liquor store, said City Manager Al Orsen.

One store that’s currently having its going out of business sale is The Elegant X clothing store, owned by Jim Burnett and operated there for almost 40 years.

Burnett said that a number of factors went into his decision to retire. Among them is that his wife Mary Jo, who did much to help run the store, passed away three years ago.

“Customers stand there and cry because they don’t know where they’re going to go and shop. It’s been a very emotional time for me,” Burnett said.

An upcoming knee surgery, the economy and the long wait for a new Bay Center were other factors in his decision, he said, adding that he’s been strongly in support of the redevelopment.

“I tell the customers we had a good run, and now it’s time to move on,” Burnett said.

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