In an Oct. 23 e-mail to the town’s staff, Queen Creek Town Manager John Kross stated local retailers are feeling the effects of a changing economy.
Some of the national chains with stores in the town are considering closing stores, possibly in Queen Creek, Mr. Kross stated.
"As for our budget, we made conservative retail sales tax projections this fiscal year," he stated in the e-mail. "We did anticipate an increase in sales tax due to new retail opening, but since those projections were conservative to begin with, we may not need to make adjustments to those projections even with additional store closures. The town of Queen Creek’s retail sales tax for the first quarter are actually ahead of projections, and hopefully this trend continues."
Queen Creek Economic Development Director Doreen Cott said her staff works to promote the town to potential developers even during an economic downturn.
Manufacturers and industrial developers are sought as well as retailers, Ms. Cott said.
Outreach includes calls, e-mails to developers and attendance at regional conferences, such as a recent one organized by the International Council of Shopping Centers.
"We were there marketing the town of Queen Creek," Ms. Cott said. "We did meet some new developers from the California market and we touched base with some of the Arizona developers."
Ms. Cott said many retail development projects in town are moving forward. The Queen Creek Crossroads project, on the southeast corner of Ellsworth and Rittenhouse roads is moving ahead, but no particular tenants have been announced, Ms. Cott said.
More restaurants are slated to move in to Queen Creek Marketplace on the southwest corner of Rittenhouse and Ellsworth Loop roads, including Macayo’s and Chick-Fil-A.
A Costa Vida restaurant is expected to open in the Cornerstone at Queen Creek center on the northwest corner of Rittenhouse and Ocotillo roads, according to Ms. Cott.
Some retailers have put a hold on plans to locate in Queen Creek because of the economy, including JC Penney, Ms. Cott said.
The town’s smaller plazas have also been slower to secure leases, she added.
"As far as our commercial centers, we’re seeing the activity. It’s definitely encouraging," Ms. Cott said. "We’ve been told the major tenants are meeting projections."
Greg Saltz, a sales and leasing agent for De Rito Partners, agrees not everything has come to a halt in the development community.
"For the most part we’re fine," he said of the Queen Creek Fiesta, a 73,000-square-foot development on the southwest corner of Rittenhouse and Ellsworth roads.
Discount Tires, Arby’s, McDonald’s, Brake Masters, IHOP and AmTrust Bank are on board for the project, according to Mr. Saltz. Deals with Tutor Time and AM/PM are in the works, he said. Some of the development should be able to open by the third quarter of next year.
The retailers are going in on the exterior of the development. Mr. Saltz said the slowing economy may change plans for the development’s interior portion.
"Originally we had shops slated for the interior," said Mr. Saltz, adding now the company is shifting and looking at a single user for the large space, possibly a hotel. "Because of the slow market, we’re pursuing it right now."
Other developments are pulling back on plans until the economy turns around.
