Enter Entertainment

By KAREN ROBINSON-JACOBS

Aug. 30, 1998 12 AM PT

TIMES STAFF WRITER

GLENDALE — Born during a time when bell-bottoms were hot the first time, and shopping malls were primarily designed to promote product sales, the Glendale Galleria and many of its ‘60s- and ‘70s-era compatriots are now trying to reoutfit themselves to latch onto the latest marketplace craze--the blending of entertainment and retailing.

Eyeing the success of such shop-a-tainment hybrids as Universal’s CityWalk, developers around the nation are spending millions of dollars bringing in everything from multiplex theaters and movie studio stores to higher-end restaurants, in an effort to teach old malls new tricks.

In a nod to the industry shift, developers hope that two new projects will bring fun-seeking shoppers into the heart of Glendale--the Glendale Marketplace, a so-called “urban village” just east of the Galleria that celebrated its grand opening Aug. 15, and the $150-million Glendale Town Center, essentially an expansion of the Galleria that last week received first-round approval from the city’s Redevelopment Agency.

“Across the nation, people are renovating older malls to add on entertainment,” said John Konarski, vice president of the New York-based International Council of Shopping Centers. “It’s not a wave, it’s a flood. I’m having a hard time thinking of [an older mall] that isn’t doing this. That’s where this industry has moved. It’s an important part of the industry now.”

Although projects such as these thus far have been largely applauded by consumers weary of boxy, cookie-cutter structures that promote more of a sense of cash-and-carry than relax-and-linger, the development is not without its downside.

Communities, including Glendale, often must pony up millions of public dollars to aid in the renovation efforts. And if the upgrades are successful, they draw scads of new shoppers into areas that may already face vexing traffic woes.

Despite these drawbacks, public officials and developers wary of outside attractions are diving in, eager to protect local franchises that in many cases provide the lion’s share of a community’s sales tax base.

“There are changes in the region, in the market that are encroaching on our market,” said Derrill Quaschnick, assistant director of the Glendale Redevelopment Agency.

He said the proposed Town Center project would give the Galleria, which opened in 1976, “an opportunity to update itself and not lose the competitive edge that it has. It’s important for this to remain a top-notch rate center.”

Plans call for the Town Center to be a 700,000-square-foot development on 15 acres between Central Avenue and Brand Boulevard, south of the Galleria portion of the mall that opened in 1983 and includes Nordstrom and Mervyns.

Backed by Donahue Schriber Realty Group of Newport Beach, the managing partner of the Galleria, the project, on which construction is slated to begin in fall 1999, is expected to incorporate a host of good-time features. Those include a Mann Theater multiplex with as many as 12 screens, a “GameWorks-type” adult multimedia arcade and upscale restaurants, according to Daniel Donahue, chairman of Donahue Schriber.

The Redevelopment Agency has committed $51.5 million to the project, including land acquisition and a $5-million cash contribution. Part of that total is a $1.18-million annual payment to reimburse the developer for the cost of building a 3,000-space parking garage.

Quaschnick stressed that because the parking payments will be made over 22 years, the actual value of the city’s contribution, with inflation factored in, is closer to $40 million.

From Quaschnick’s perspective, it’s money well spent.

“Entertainment retailing, lifestyle retailing, that’s where most centers are going,” he said. “All of those things are changes seen on the horizon that are needed for the Galleria.”

Donahue acknowledged that the mall had a chance to add entertainment at least twice, when it lost two department stores. Orbach’s closed in the late 1980s and Buffums closed in 1991.

Instead, in both cases, the developers decided to bring in more retailers. These days, developers are listening to the cry of patrons clamoring for entertainment.

“A lot of us respond to the squeaky-wheel theory,” said Donahue. “You can use a theater complex as a tremendous draw, perhaps even better than a department store.”

The Glendale Marketplace, developed by Regent Properties of Beverly Hills, already has helped encourage many area residents to think of downtown Glendale as an entertainment destination.

“It’s got this Old Town Pasadena flavor to it,” said Glendale resident Leslie Waltzer, as she, husband Michael and their three children completed a visit to Borders Books.

It was getting dark, but the sidewalks were filled. A couple strolled leisurely by, arm in arm, carrying his and her bags from Old Navy, one of the Marketplace’s anchor stores.

“You can walk here and you feel safe,” Leslie Waltzer said. “It’s somewhere you can take the kids. It’s got the Old Pasadena feel without having to go all the way to Pasadena.”

The latest additions join existing draws like the nearby Alex Theatre and the Exchange, which also features a Mann Theater complex.

So far, the Waltzers and other Marketplace visitors say, traffic and parking have been manageable.

But Glendale City Council member Ginger Bremberg said a number of residents have expressed concerns about a potential traffic nightmare, especially during the holidays.

“Oh yes, there’s a good deal of concern about traffic,” said the three-time mayor of Glendale. “It’s been addressed in quite a bit of depth in the [environmental impact report], and our traffic and parking commission is looking at that.”

A “gigantic,” 1,100-space parking structure was built adjacent to the Marketplace, Bremberg said, adding that another large structure is planned for the Town Center.

“The residents and some of the retailers have expressed concern about the traffic,” Bremberg said. “It’s a serious concern and we’re not ignoring it in any way.

“But if [shoppers] don’t come in their cars or on their pogo sticks, we don’t get the revenue.”

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

The retail cluster around the Glendale Galleria got a boost with the mid-August opening of the Glendale Marketplace. The shopping district is slated to expand again as construction begins next in the fall of 1999 on the 700,000 square-foot Town Center. Both developments aim to lure strolling shoppers from areas like Old Town Pasadena.

Glendale Marketplace

Broadway and Brand, east of Glendale Galleria 170,000 square feet.

Cost: $50 million

Status: Grand opening held Aug. 15

Anchors: Old Navy, Good Guys, Tower Records, Linens ‘n Things

Entertainment: Four-screen Mann Theater

Developer: Regent Properties, Beverly Hills

Glendale Galleria

Broadway and Central 1.4 million square feet.

Cost: $128 million

Status: Opened 1976; Most recent renovation 1997

Developer: Donahue Schriber, Newport Beach