MASON CITY – News reports indicate this week that national retailer J.C. Penney may be near bankruptcy.
According to CNN Money, J.C. Penney’s stock “hit a 13-year low Wednesday as investors grow increasingly concerned about the future of the 112 year old iconic American retailer.” Shares briefly dipped below $10 per share, prices not seen since 2000.
A JPMorgan analyst has reported that the company could run out of cash in 2014 if sluggish sales for the retailer do not improve soon.
CNN Money also reported that “The retailer’s fall from grace during the past decade has been dramatic,” noting that promises from a new CEO “to remake J.C. Penney by eliminating discounts and bringing in new brands failed miserably.”
J.C. Penney is one of two anchors in Mason City’s Southbridge Mall, along with Younkers Department Store. Many residents feel that if one or both anchors fail, Southbridge Mall would be in a dire situation. With at least a dozen storefronts empty, the mall, which had its grand opening in 1985, has seen better days.
“The loss of an anchor store at Southbridge Mall could be difficult to fill as the city sprawls westward even as population continues to dwindle,” an observer noted. “Indianhead shopping district is where all the new activity is headed.”
J.C. Penney stock (JCP) is up 10% today in early trading.
“The loss of an anchor store at Southbridge Mall could be difficult to fill as the city sprawls westward even as population continues to dwindle,” an observer noted. “Indianhead shopping district is where all the new activity is headed.”
That’s the same old same old–cities empty out, and to keep or increase the tax base, cities expand in geographic area, hoping to make up for the emptied core.
Of course, with plenty of vacant land already existing within the city and plenty of infrastructure, it makes absolutely no sense for the city to build new infrastructure on the edges.
It’s expensive, a waste of resources, and you have fewer taxpayers supporting an ever larger infrastructure.
None of this sprawl occurred “naturally”. It occurred as a result of conscious decisions made by zoning and political leaders.
Come to think of it, “Hacker” is a perfect name for this blogger. Another plant.
Actually I have voted for Max in the past so please don’t put a label on me.
Then don’t sound like an insider.
You sure fooled me because your comments look as if you have your nose is up the Chamber’s butt.
Max,
You should be prepared to answer these questions. Some are important, but most are just self-serving questions to promote more of the same.
Hacker, I can see right through you!
Max Weaver would be a much better Mayor then our current Mayor.
The big bro-ha-ha will be, how is Max going to perform?
If the Chamber, Globe Gazette, and community Elite would treat Max fairly and quit creating fault when it isn’t warranted, Max would not display the frustration that he has in the past. In all the years I have observed Max, the side of him that comes out wrong has always been after he has been attacked, lied to, and totally mistreated by the Media and back biting politics from other council members or Chamber of Commerce officials.
That all needs to stop!
You want a positive direction for Mason City? Put people in office that will put ALL of Mason City FIRST. Our current Mayor and City Council has clearly not done that and it has left a bad taste behind.
Max Weaver has promised me he will put the whole community first and build consensus on issues, unlike the way government is conducted now.
This would be a most welcome and positive change. I am voting for Max Weaver and you should too.
Hacker got outed!
Look to candidates who will add to our community.The November elections are just around the corner. this is a great time to look at the candidates. time to find out what they want to accomplish if elected.
how about finding out how their position on issues move us forward as a community.
I am far more interested in what they will try to accomplish in a positive approach than what they want to stop or take away.
it’s time to move on and identify opportunities, rather than setting still. Time to start looking at things we can do rather than complain about what has already happened.
What does the candidate think about Tif
What does the candidate think about downtown
What does the candidate know about the unfunded retirement mandate
What does the candidate think about the decaying buildings on north federal
What does the candidate think about the future of the buy out properties
What experience does the candidate have in understanding how businesses and industries choose communities
What does th candidate think of our parks
What does the candidate think we can do to encourage more new housing starts
What does the candidate think of our zoning ordinances
What does the candidate think of tourism
What does the candidate think of our city services
PLease feel free to add to th discussion. nit can be a good sounding board for the community or just be the bench that bitters set on and complain.
@Hacker-good questions all. The only additional things I can think of is where do they stand on raising taxes, where do they stand on supporting all of the people, and where do they stand on the Chamber of Commerce. I am sure other people would have more questions.
@LVS don’t let Hacker fool you. He is clearly a Bookmeyer supporter!
@Anonymous-OK, but I am not. I am for Max all the way and I will bet he can answer those questions better than Bookie can. At least Max will be honest about it.
Haker,
Are you listening?
The city council should have listened to Stan Romans when the mall was being talked about being built. He said way back then that the mall was going to cost Mason City more than we were ever going to get out of it. If memory serves me, he was called anti-growth back then. The guy is looking like a genius now for those who remember the debate. That hunk of crap should have never been built. The mall was the deathknell for downtown Mason City, and they’ve been looking for answers ever since it was built.
If the old downtown could have been saved and restored, and I’m talking about many of those old gems down there, not just on Federal, we would really have something. Everything got torn down, now look at us. No foresight here, bad leadership from the greedy. Still going on.
Let’s look at the givens
One current mall management is horrible.
corporate policies are bad
overall malls are struggling all across the country-it’s not strictly a Mason City issue
Lifestyle malls are viable
A casino is not ever going to happen
Downtown is a whole lot more than a shopping center
WalMart gets 60% of the grocery dollars spent in America
The old buildings were crap long before SouthBridge
the downtown farmers market isn’t working
Friday night live has been a huge success
The hotel is a huge draw. Go in and look at their guest sign in log
Now let’s get positive suggestions for improvements, not the same old pissing, moaning and complaining.
Hacker, you are running away from reality.
Actually you have to be one of the elite trying to put a good spin on a terrible history of Mason City failure.
The use of the Frank Lloyd Wright bar built by the taxpayers for the wealthy is a great example of how the taxpayers are being taken for a bunch of saps.
If the well to do want a fancy Frank Lloyd Wright hangout they should have paid for it themselves.
I like the idea of getting the Chamber and long time movers and shakers out of the way and let someone else lead the city in a positive direction.
We need to let Mason City grow by allowing jobs to come to Mason City. Real jobs that pay decent wages, not a bunch of retail jobs or once in while employers that just happen by.
Jobs will only come with NEW leadership removing the stranglehold that the Chamber gang has on Mason City. That would be a huge positive development.
How about rent the biggest bulldozer the city can find, and drive it right through the center of the mall. If Mason City wants a vibrant, bustling, downtown, there is only one way to get it. We have to have a road that runs through the center of downtown Mason City. No road through the center = a dead downtown.
My Suggestion:
@Just Saying, said, “I see a lot of people complaining, but no one wants to step forward and do anything, or offer a concrete answer of what should be done.”
This is what should be done and the best solution for the Mall and all of Mason City.
STOP LETTING THE CHAMBER OF COMMERCE, AND THE SAME GANG THAT HAS always BEEN IN POWER KEEP ABUSING US.
This good for nothing bunch has been the root of Mason City’s problems for decades. They are a lying, negative bunch of scoundrels in it for themselves.
After all these years and millions of dollars we have given to that downtown bunch of bums, we have a dead downtown and NO JOBS coming to town. Meaning full jobs!!!!
The only label I can give these bad guys at the Chamber Of Commerce, Globe Gazette, and there elite gang is, there are the REAL BOGEYMAN!
To make this change, it has to start in the VOTING BOOTH.
Get rid of that nasty crowd and you will start bettering Mason City.
My suggestion.
But bookmeyer ran on the “more jobs” ticket… Where are the jobs eric? November will be here before you know it. I hope people remember the Eric of four years ago and the eric we have today.
9 bucks an hour jobs, 26 of ’em out west
Surely Eric, to raise a family on that, you must jest
Once IC System left town, call center jobs we did lose
While Eric schmoozed Robin and her cronies over cups ‘o booze
Mayor Eric Chamber Of Commerce Bookmeyer,
enough said.
Downtown shopping malls only succeed now if they’re turned into what are called “lifestyle centers.” In other words, not just retail stores but restaurants, bars, salons and spas, maybe chiropractors and dentists, etc. If the mall had local ownership and a manager who’s lived here longer than just a few months, they’d know that, have the contacts to do it, and be getting it done. The new ownership/management charge for everything anyone wants to do in the mall, so of course no one’s doing anything, and there’s a huge drop in foot traffic. Let the scouts, youth groups, nonprofits, etc. stage their events in center court free of charge again, and the situation will start to turn around immediately. Once again, much of the problem is just plain bad management.
You have some very good ideas. I will expand later as time permits. But you are on the right track.
Years ago when the mall was built, it was thought to be a wise investment. Time has proved that it wasn’t, but that is looking at it from todays viewpoint. The mall is there, so we have to deal with it. The question is, are we going to keep moaning over the problem, and suffering with it, or are there people out there who can come up with some other vision of how we can overcome the problem. I see a lot of people complaining, but no one wants to step forward and do anything, or offer a concrete answer of what should be done.
@just saying-I believe I have said this before (many times) if you want to revitalize the downtown area and attract new retail business there we should tear down the worthless mall and open Federal Avenue back up. There is no one I know that will open a retail down there when access is so limited. They depend on walk in customers and unless you are going to a CPA or the dentist there is not much reason to go downtown. They killed it when they blocked off the access. Now, all that being said, it will probably never be the way it used to be but, it will certainly be better than it is today.
I don’t think it is access. I think it has to do with putting everything under one landlord who can command anything they want from their renters. Eventually renters go out of business or move out. This is where big box out west got it’s launch. People don’t mind making a few stops driving a short distance from location to location. If you look at the average body type in this town, they don’t do a lot of walking by shops. The mall is inconsequential. It was just the last thing that happened before downtown started dying. It is however sitting where an event center would have a decent home.
@Anonymous-why would you want a event center there when we have NIACC, The Fair Grounds, All of the motels as well as the High School? It would be redundant as well as another ongoing expense for the taxpayer.
@LVS – And I think I have told you this before. The city will never use your idea. 1) It makes too much sense. 2) It would probably work and take care of our downtown problem 3) It wasn’t thought of by Robin Anderson. So unless you’re Robin in drag, I’m afraid you’re fighting a losing battle.
Good points. The fairgrounds are circling the drain. Only a matter of time before they are dead and sold off. Having tens of people on the “board” is a liability and not an asset. NIACC is way the hell out of town would generate little foot traffic downtown. The high school is not a venue that would work for anything worth going to see or do outside of high school activities. But this is just my two cents. Our mall will not stand. I have seen the same problem in other towns of the same size. Bigger towns have the same problem but on a much smaller scale.
@just saying-I think you are correct, but it makes me feel good to say it again. I have been saying it for year. Jolas, McNider and Kew made a killing on the mall at taxpayer expense.
I think “Hacker has it all wrong” is completely right and should run for mayor.
I think he is!
I know people have strong feelings about the mall but the project happened 30? years ago. Can’t we just move forward? The discussion about the impact to the mall if Penny’s closes is part of moving forward. The discussion about all the now dead folks who pushed the project isn’t.
We must NEVER forget what happened to Mason City and the terrible way our downtown was ruined, ALL AT THE EXPENSE OF THE MASON CITY TAXPAYERS.
This information is very relevlent today as the SAME gang is running the city, but just have different names.
Stay focused folks!!!!!!!!!!!!
Yup, and ‘ya got that right…
Penneys is dying…Sears IS dead.
There will never be a casino in Mason City. Casino locations are state approved. No new casinos will ever get built if they would severely damage
an existing one. Those comments just show how uninformed and uneducated those contributors are. to be truly objective one would have to look at the property taxes that the mall has paid and compare that to what those old run down buildings were paying. The real disservice to Mason City downtown were slum landlords Lyle Bergo, Sam Raizes and others who had crap buildings. the Mall started the trend for Mason City becoming a regional retail center. unfortunately some major retail chains came in and moved west since it was cheaper to build on bare round than tear down buildings and build. Plus McNider got lots of city help too. Most of your contributors are men and in general we are damn poor retail mall shoppers. the Mall is designed for women and since most women today work that is why the mall is busiest on weekends.
Hacker, the city knew full well that the best place to build a Mall was where Hy-Vee West down to Kaplin is now on the West Side. The professors in Ames, at the College, who hold degrees in development informed the then leaders the downtown was NOT the best location. The Mayor and City Fathers were told a Mall built out west would strengthen the downtown. Of course that was never made public, but it’s true, I was at the meeting in Ames with the city big shots. Heard it myself.
The Globe Gazette was told that also but they withheld that information form the people of Mason City too.
Tollbridge was all about money and paying off the downtown building owners so they could retire and leave town. And that is just what they did!
Raises, Fox, MacNider/Pennys, and all the downtown buildings were paying good taxes and when they all got together and started pushing a downtown Mall they quit updating their buildings. The basic structures were sound. The City was in cahoots with those downtown owners and did not send out the city inspectors to cite them for not keeping there buildings up. THERE WERE CODES IN PLACE TO TAKE CARE OF THEM
The downtown mall was a ruse from the get go.
As far as Mason City becoming a retail hub? That would have happened anyway. All the big department stores were expanding back in the 80s. Shopko, K-mart, Target, Wal-mart, ect. Southbridge had absolutely nothing to do with making a Mason City a retail hub. That is just all BS.
Also, the taxes would have went up on the downtown buildings just like the rest of Mason City’s real estate and we would be collecting more in taxes then what Tollbridge is paying now!
Been a lot of Bull spread in this town about that whole downtown mess. All the truth has still not been told.
At the end of the day, it destroyed Mason City’s downtown!
Sorry
Reading the comments it is apparent that the Chamber of Commerce and City Leaders have really really screwed Mason City up badly.
Like someone said, and they just keep throwing more money at it. Someone has been lining their pockets!
Hey Anonymous, thank you for the comment, my position as not changed all these years, it would fill all the buildings that are empty, get rid of all the blighted houses on the west end of the downtown, enhance the downtown, bring lots of jobs to Mason City, proceeds could help with tax relief here in Mason City, this would help all the citizens of Mason City, including the school system. Just like Worth County, The Wright Hotel would always be full, and people would drive for miles from the North Iowa to come to Mason City. Just saying, but I don’t think the Council would even look at this option. The Mall would house a great Casino, with lots of parking, and all the money it will generate for our City. Maybe the candidates might think of this, or even the incumbents, which i don’t think will happen. Sounds good huh?
I have the solution!…close the mall down and turn it into a casino. Tax the crap out of it, and the city can build all the pet projects they want. Problem solved.
beautiful, I mean outstanding….it could be done, there are gaming companies that would look seriously at this proposal
@peter..I also made the same comment about the library, even though I have enjoyed the library it is time for it to go, and would make a very nice card room/casino.
IMHO we should gut most of it and turn it into a convention center. Dome of the stores are even large enough to house an indoor sporting area. Hosting events such as those would bring in the types of taxpayers that would dump a good chunk of revenue into our area and help revitalize downtown. I realize its not that simple but its a great idea.
@Quinn-are you nuts or just ignorant. Why in the hell would you want to put all of the motels with convention rooms out of business not to mention NIACC and Music Man Square. Turning that into a convention center would be nothing but a permanent burden on the tax payers. They are having a hard enough time as it is. There is not enough need for something like that in Mason City. It requires a study before that type of project is taken on. You need to think before you speak.
Straight out of weavers playbook. As a long time poster to NIT I would expect more of you than just logical fallacies and intellectual dishonesty. Yes, more of me sounding pompous because I am calling them as I see them. This isn’t idiocracy, using redundant ad hom attacks and more slippery slope fallacies don’t prove your point. Not to mention you taking what I say out of context. I said convention center, not convention rooms. The idea isn’t for a group of 15 insurance agents to gather there to work on their continued education credits or celebrate a 50th wedding anniversary. It’s for conventions, large ones. Examples; comic book conventions, gun shows, anime conventions, video game conventions, tattoo conventions, art exhibits, etc. Things that could bring thousands of people to Mason City to spend their money here. Those types of activities are not threatening to the hotels and in fact would probably help there business as most conventions can last for days, and well they will logically need somewhere to sleep. If you weren’t aware there was a video game conference here in Mason City earlier this year, not much room, not many showed up.
@Quinn-what do you think Music Man Square is there for. That is what they do. The way I understand it they are having a little bit of a tough time booking and you want to take business away from them for your pet projects. Think before you speak. No wonder you don’t have a chance of getting elected. The best you can hope for is to take votes away from Weaver.
@LVS I am fiscally conservative by nature. I am looking at Mason City’s future and potential. I am trying to raise that bar. There is no way the Music Man Square could hold a convention with the possibility of hundreds of vendors and thousands of visitors. There is nowhere in a 90 mile radius aside from the fairgrounds that could do that. We need to work with what we have and capitalize on what we have and can have. I’m not going to sway Weavers followers because they already have their minds made up. Bookmeyers voters and young families however I will appeal much more to.
Quinn is right, the mall could be like the metrodome. Once they tear the real one down, maybe we can borrow some of the pieces to finish up ours.
I agree if we had any leadership in this town we would of had the casino and the downtown would be busy.
We did not get the casino because of baseless fears mainly by the church community and other “civic” minded leaders. The casino has been proven to not be the devil they said it would be. Instead it has generated multi millions for worth county. Booze, cigs, even credit card misuse does more damage to familys than a casino ever would.
You want the Park Inn filled every single night of the week, and make it profitable? Build the casino just a few steps away. Maybe Steve Noto and his friend Kim Pang should get together and get this done.
I was told that one of the church’s in town, which I won’t name, was going to ask Diamond Jo for some money. Imagine, biting the hand that could feed you….Quite an after thought.
Mike Servantez had said that for years. He would sit down at the mall and tell us guys it would solve the age old problem of wasted space 🙂
Sears is on it’s way out, it’s just a matter of time. Maybe JC Penny is moving to Mexico, either way, Younkers won”t be far behind. Welcome to Mason City, almost dead, but not forgotten…
If you think the mall is a dying horse, just drive by Sears and look at that dead behemoth.
Has anyone actually gone into Sears lately? They don’t sell clothing at all anymore! Just a few remaining shoes and appliances/electronics
Very true. But I still buy some appliance there when the have some great deals.
Its no longer Sears, its Sears/K-Mart with both stores represented in a city why waste floor space to compete with itself.
Just wondering, while the mall may prove to be a poor long term investment, we may still be far better off and money ahead then having the obligation of all those abandoned, slum buildings that stood on south federal, generating no income with the meter running.
Mason City is NOT better off at all. Those were sound buildings with great architecture. If they were there today, they would be paying way more then the Southbridge buildings do.
I had heard the owners of those buildings were encouraged to let them fall into disrepair. It would make sense.
The mall that was supposed to “save” downtown “failed” long ago. A closed J.C. Penny would only punctuate this fact.
Just do a rough count of cars in the parking lot downtown vs. those at Wal-Mart + Target + Staples + Menards + Mills + Hy-Vee + etc. on any given day to realize it has long been “over” for quite some time.
Back in the late 70s and early 80s Mason City spent 10 million dollars in Community Development Block Grants the city had saved up. This was used to buy and clear the land for the mall. Then there was another 4 million in Water and Sewer Revenue Bonds sold to redo the water and sewer lines in the Mall area. (paid thru your water bill) Also the taxpayers voted to approve an additional 7&1/2 million in General Obligation Bonds to finish buying and clearing the land.
The Mall Partners were supposed to pay those 7&1/2 million in General Obligation Bonds off, but at about halfway through the bond payments the Mall went bankrupt and YES you guessed it, the taxpayers paid the remainder of the bonds off.
Oh, and then there is the perpetual parking lot maintenance/snow removal that City Employees provide through the street department. Maybe the Mall does some re-reimbursement but I am sure it doesn’t cover it all.
One more thing, the taxpayers pay the electric bill to light up the Mall’s parking lots too.
If you add up all the money thrown at Mason City’s downtown it would be well over 50 million.
Just think of the JOBS we could have BOUGHT with that money?
Then the stupid city fathers gave tax increment financing to the MacNider’s Wal-Mart/Westside development to take the retail stores away from downtown. (More free taxpayer dollars giving to the rich)
Isn’t this spreading the wealth UP just great?
Mind boggling isn’t it?
I didn’t know the city pays the light bill at the mall parking lot. How can that be confirmed?
The mall has a private contractor remove snow.
@Observer-then why have I seen city plow trucks up there plowing?
The “drive” on the south side of the mall is still a part of 2nd St. south so the city plows it. McKiness moves the snow in the parking lot and hauls it away.
50 million dolalrs—macnider didnt get a dime from “the stupid city fathers”. In fact, they used the tax increment that wal-mart created to fund some of the northbridge project–which is downtown. All macnider asked the city for was a zoning change–which he barely got.
@jvs, you are full of it. Check the records. MacNider got paid handsomely for the old Penny’s store building which they owned. MacNider was happy for their buy out and when they got their money out of the downtown they went out and built the Wal-Mart/Westside development on the taxpayers dime.
Then they started luring downtown Mall business’s and potential new business’s out to their money making Westside Development.
They just got another $400,000.00 to build another department store out there.
No loyalty to Mason City at all, only their wallet. My opinion!
no you check the records. I said macnider didnt get tax increment financing for the development of indian head/wal-mart and he didnt. In fact he paid out of pocket to improve the city infrastructure(hwy 18 improvements). the only thing he asked for was a zoning change which took years to get approved. the increment that was created by the development did not go to macnider-it funded, in part, the north bridge project. the money from the old pennys bldg was no more than a drop in the bucket compared to the investment macnider made on the west-end. YOU have the facts wrong–I know thats the way you and others on here want to believe things–but its not factual. sure,the current Marshalls project is being funded, in part, by tif but thats not going to macnider its funding the building project.
They don’t own the mall but they had to pay for all the infastructure and road work involved. Who do you think paid for that. We didn’t pay for the new Fareway store either but we have millions involved in moving them.
Good point and same old leaders in charge now as then, namely big landlord marinos. Hope we get some good change this election. Matt, Max, Jodi.
Lets turn it into a huge indoor skating rink. Everyone submit an idea and maybe we will be one step ahead of our city council when the doors close.
It’s likely that JCP will go into a managed bankruptcy or receivership, much like Kodak, Sears and all the other old time American Giants. That’s not to say that the mall as so many others in mid size cities isn’t in a world of hurt with no immediate signs of recovery.
DUH the mall already failed who wrote this crap? Went in there the other day, it is like a rural casino without the smoking. Old broken down peeps staggerin’ ’round, a tired, bored security officer, empty shops all over. No hopes, no prospects.
And the real pity of the mall going bust is that the city just finished paying it off a few of years ago. Now all we need to do is finish paying for Northbridge which is a Marinos left over and we can find another downtown project to waste our money on.
the city owns the mall? since when?
Paying the mall off was to our advantage. When it goes belly up we will be free of any long term mall obligations. But watch out, the tax base however will need to be picked up by increases to you and I. Either way, the reality is that we all suck it up.
Mason City is not especially unique in this way, Iowa towns are littered with dying down towns, mom and pops gone forever and the proliferation of Wally World.
We all drank the cool aide. Thank you Sam Walton.
The mall will make a lovely Mercy Campus.
@Anonymous,
I was thinking the same thing, Mercy would be a good fit there.