Collegian Venues - your weekend starts here
  Advertise with the Daily Collegian



Get a deal with Daily Collegian Coupon Corner
  The Digital Collegian - Published independently by students at Penn State
NEWS
[ Friday, Jan. 30, 2004 ]

Building up, shutting down
Borough unable to support business growth

Collegian Staff Writer

While the windows of the Ames department store in Hills Plaza have remained dark for more than a year, the recent closure of other stores may be signs of suburban State College being overbuilt, some real estate agents and community groups say.

Tony Vita, owner of Vita and Vita Realty, which rents out Hills Plaza, said he could not comment on the status of any potential buyers of the previous Ames store, which closed after the company filed for bankruptcy in 2001.

Last year, potential replacements included stores such as Home Depot, Wal-Mart and Kohl's. None of them have yet come to fruition.

Vita said State College cannot support the addition of new, larger shopping centers, such as the shopping plaza on Colonnade Way, without older stores in less visible locations going out of business.

"The Colonnade has 600,000 square feet, Nittany Mall has 350,000 square feet and Hills Plaza has 200,000 square feet ... they happen to have room," he said. "Everyone likes brand new."

Greg Maynard (junior-geography) said when he visited the new Circuit City, 48 Colonnade Way, employees were more visible than customers.

"It's one of the nicest Circuit City's I've seen, but no one is in it. There's always more employees than customers," he said.

Agent Tom Henderson of Marx Realty, the real estate agency for some businesses on Westerly Parkway, also said State College can support only a certain number of businesses in proportion to its population.

Henderson compared State College to a community able to financially support 10 gas stations, but unable to effectively patronize 15 gas stations.

"There's normally a correlation between population growth and retail space. Store developers get excited when they see the area growing -- the wheels are set in motion," Henderson said. "It's not until after the cycle is well underway that oversupply results."

Oliver Carley, policy analyst for 10,000 Friends of Pennsylvania, said lack of municipality coordination as well as state policy fragmentation are responsible for the urban sprawl the area may be experiencing.

10,000 Friends of Pennsylvania is an organization that reviews economic development in the state to foster responsible land use and conserve natural resources.

"Pushing for state agencies to agree on a single message for economic development and multi-municipality planning ... by cooperating through agreements to include a centralized bureau might help," Carley said.

Implementing tax base sharing -- splitting earned revenues from a store among adjacent municipalities -- might also ease any economic tension the area may be experiencing, he added.

Pennsylvania lags in terms of its productive workforce age bracket, which is composed of people 24 to 35 years old, Carley said.

"There's not a lot to attract people [to the area]. Older towns are dilapidating because growth is spreading outward," he said.

Maynard suggested that a lack of funds, as well as inadequate bus transportation to off-campus areas, are reasons college students might not patronize businesses.

Ryan Dangle (senior-recreation and parks management) said State College is not different from many other areas and that location may be a factor that some people don't consider.

"As far as having empty businesses, you can't wait for one business to fail to replace it with another," he said. "An area requires demand. If a grocery store is needed, it will be there."


PHOTO: Kristen Perkins
PHOTO: Kristen Perkins
Ames closed two years ago. Real estate agents have not been able to fill the vacant space. Some business leaders have said that State College cannot support further growth.
 

Send an Opinion Letter to the Editor about this article.


   





TOP  HOME
Blogs  About  Contact Us  Back Issues  Advertising 

Copyright © 2008 Collegian Inc.
Updated: Friday, January 30, 2004  2:19:46 AM  -4
Requested: Friday, October 10, 2008  11:14:08 PM  -4
Created: Wednesday, May 07, 2008  6:44:46 PM  -4