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"It is the best undeveloped retail location in the city of Indianapolis
and Carmel—anywhere around here."
Greg Gurnik,president,Lauth Property Group
Retail wonderland
Uni q ue open-air center planned for Carmel
Clay By Dana Knight 520,000 square-foot Ico nry"
dana.knig htC�i ndystaccom
Terrace estled on the edge of an explosive re- retail center planned detaof
tail hub in Carmel is 50 acres of green Clay Terrace will open by 2004 at ''
Location trees and fields. the southwest corner of 146th aes
Big box retailers Lowe s,Kohl's,Me-
.; Southwest cor Street and U.S.31.
I` ner of 146th nards,Galyan s and Best Buy are ad ��
ad-
jacent to the plot.So are hundreds of The project
-e_----:x,,,,‘- �
Street and thousands of residents with plenty of disposable in- cost:$9U we�tfield Mario"c3u tv
U.S 31 come.
Ground-. Vacant acreage here?Not for long. million 0 161st St
i3l' A massive$90 million retail complex featuring Size:520,000 ,
By the end of high-end national retailers and white tablecloth res- square feet, i °' t
taurants will open by 2004 at the southwest corner 450,000 of that ' 14601 Sty
the year of 146th Street and U.S.31.The Carmel City Council retail and New ,)
Opening approved zoning for the project earlier this week and 70,000 office development ..
By 2004 construction will begin later this year. Developer. 1315t St. a ..
The 520,000-square-foot mixed-use center,named g io
Target area Clay Terrace,is being developed by Lauth Property Group Property o s
Group ; -~
Developers ex- Group. Carmel Mile oil
pest the retail "There really aren't too many projects anywhere t --. . .-
area to draw that are half-a-million square feet in an open-air cen 146th St.
I ter,"said Bill French,retail analyst with Colliers Tur-
25smi es to the
ley Martin Tucker."But it's an extraordinarily dy- -
namic area.You've got the explosive and wealthy Unique
north and 20 population in the Carmel market,then you have a ,
mile storefronts
miles west of trade area to the north which virtually is boundless." resembling -.
the site,in con- According to research by Lauth,the retail center is retail stores „ill'',ditV V to Con of earl _"1#. 1 =,._ -.
sumers from expected to serve about 330,000 residents with an av
erage household income of$102,000. 1900s. x 31
northern Mari- ,
on County and "It is the best undeveloped retail location in the
all of Hamilton city of Indianapolis and Carmel—anywhere around
County. here,"said Greg Gurnik,president of Lauth.'It's the Four-lane L. ` ' .
combination of the very,very strong demographics boulevard , p" `V
Residents in and the fact that you are at the intersection of two (an ' One major
target area major,major thoroughfares." extension of '
The village-style com lex has already drawn in- Rangeline anchor with
328,351 P y Road)will 1 six smaller
terest from a number of high-end retailers,at least f stores
run through
e��E � half of which will be new to the Indianapolis area, 1` \
said Gurnik. the project A
houseiwid
j? r"' 3 While Gurnik declined to name specific tenants with parking ` M.,; V
in front of i -.lib because the deals aren't yet official,name retailers the shops. "
$101,629 such as Lord&Taylor,Crate&Barrel,Talbots and Wt.
•For informa- Ann Taylor have been said to be interested.
The project falls under the retail classification of '" 1
Lion about P 1 x
the project, open-air concept,but Gurnik claims the complex will `.
visit www.clay- be unlike anything in central Indiana. i i V
terrace.com. A village-style theme will permeate the project ' ' Anchor
with a four-lane boulevard weaving through throu the corn Village-like
i Other retail 1—
stores - ,,' �` _ including
See Retail, a C7 I }Restaurants] benches and
4 a .. . elaborate
landscaping.
ter-. a d A }1 1
s ,. h ,zo' . u § ' gyiee \N
`e-
,�;w - � . i* (s ' Marsh . * '
, Barnes& ,•s *
Noble a""" ..._2 7f
41 :1.4,,a.
a t Kohls 437,.:, :.::, ,.a `. ,, ,� _,__-7,-i, _..,.,.. a.„,,erli.r.,„f.,,,,,, Nis,k1/41 , ,.. 1 ,,.
. - `r- °"
., Lowe s
Wit. _ � '�� � C`_ owe ��,.� � ,?50jeet �
iti g, o
/7,4-, ''... '' - - ,-1= ._ / '''" ;\ ' , '-,:,''-,.4ct:, 4 .
i ,,....„- ',.:4;er ',-''„s- s ' , ' .1 -7-77—*\ ,, ittitit., ,...,....,
/ *,
1l,,� -.:
Source:Lauth property Group �. Ryan Mabry 1 staff graphic
SNP SATURDAY,SEPTEMBER 7,2002 C7
R etai' anchors and retailers that are
Successful and more upscale
could be key to success,Kava-
nagh said.
•Analysts are sure Clay Analysts have no doubt Clay
Terrace will be successful. Terrace will be successful.Car-
mel Cl mel residents spend hundreds
of millions of dollars outside of
plex—an extension of Range- their home city each year,ac-
line Road—and parking spaces cording to Gentleman Associ-
on the sides of the streets. ates,an Indianapolis-based re-
Benches,water fountains and tail research firm.
extensive landscaping will be "Our studies reveal that
featured. more than$1 billion in retail
"A variety of unique store- sales is currently leaving the
fronts will also provide the feel- Carmel market which,in my
ing of the pedestrian-friendly opinion,is staggering,"said
villages of some time ago,"said Karen Gentleman,president of
Gurnik. the firm."(There is a)clear and
Open-air centers are one of compelling case for a project of
the fastest-growing segments of this scale and quality."
shopping centers in the nation, Carmel has lacked adequate
according to the International retail facilities for years,said
Council of Shopping Centers. Carmel Mayor Jim Brainard.
Most open-air centers are "We've heard that for years
more of a strip-mall setting with and we see that ourselves.
big-box anchors such as Wal- That's why this project was ap-
Mart and Kmart,said Malachy proved,"he said."We think
Kavanagh,spokesman for the there's enough of a need for re-
council of shopping centers. tail in this area to support this
And those centers are failing project.It will help bring syn-
nationwide as tenants go bank- ergy to the area."
rupt and leave,he said.Finding ■Call Dana Knight at 1-317-444-6012.
U.S1. 31
■Dense office complexes
Tuesday,September 10,2002 produce more tax revenue.
Section NA From NA1
"We're always under pres-
InfoLine:624-INFO(4636) sure to do that," Brainard said.
"There's always retail devel-
opers trying to locate in the
on and Marion counties U.S.31 overlay corridor."
Brainard said keeping fur-
'ST ther retail development out
helps keep Carmel's tax rates
low, because the tax revenue
from business offices is much
greater than from retail stores,
which take up more space.
"It's the mix between our
■ business tax base and our resi-
dential tax base that keep our
tax rates as low as any city our
size in the state,"Brainard said.
And it's a mix city officials
officials are no longer willing to tamper
with.
"We have a great balance be-
, tween businesses and homes
here," said Council President
Wayne Wilson, who voted
■ Cl wants to see against the ordinance that es-
' Last puzzle piece tablished the Lauth Property
office buildings, not The Lauth development will — Group development last week.
retail centers, in rest complete retail Z "
M Are we going to mess with
development on Area of Hamilton' the mix that has made Carmel
y zone. each of the four
of U.S. 31 overlay detail Co. the most desirable address in
corners at the the state of Indiana? I'm not
By Bill Ruthhart intersection of , „ s.69; willing to do that."
bill.ruthhart@indystar.com 146th Street and •Call Bill Ruthhart at 1-317-570-4482.
As city officials begin to wel- U.S.31. ` ■yes`
come Clay Terrace,a new 520,000 \ T
square-foot retail center, to Car- Retail 1 Marion\o.
mel's northside, they also warn development
that the development will be the project village
last of its kind in the U.S.31 cord-
Barnes ,Plarzka
dor. 146th St. &Nobler
CARMEL
a... Lowe's
kir a., 31,
"After this,I don't even want to ' Clay ;
Terrace
hear of any more retail develop- v \
ment in the corridor, and I don't //4 Mile
want. to see another developer 431
come in here selling another de-
velopment,"council member Ron E.weaver f staff graphic
Carter said."This is it,I'm not vot-
ing for any more retail develop- Brainard said. "We'd like to keep
ment there." that space open for when the
Cannel's Planning Commission business office market improves."
and City Council took steps Brainard said an exception was
nearly 20 years ago to limit the made two years ago, when the
amount of development along council and Planning Commis-
U.S.31 by creating a special over- sion decided to allow retail de-
lay zone. That zone prohibits re- velopment at the intersection of
tail development along that corn- U.S.31 and 146th Street.However,
dor,and the mayor and other city he and other city officials are not
officials are adamant about keep- willing to make any more excep-
ing it that way. tions.
"I would hope we don't see any
more retail there," Mayor Jim See U.S.31,Page NA2
Tuesday,SepternberiO,2002
SectionNA
InfoUne~ 624~INFO (4636)
1ST
I u.s. .31
.. Dense: office complexes
produce more t'l)e'revenue.
From NA1~'
"We're always uilder. pr~s-
sure. to. do that," Brainard scud.
"There's always retail devel-
opers trying to .locate in the
U.S: 31 overlay corridor.", .
Brainard said keeping fur-
therretail'development out
helps. keep CaImel's tax rates
low, because the tax revenue
from. business offices is much
greater. than from ret!ill, stores,
which take up more space. .
"n's the mix ,between our
busmess tax base and our resi-
dential tax base . that keep. our
tax rates as loW .as any cityo~
size in the state," Brainard scud;
And it's' a mix city officials
are no longer willing to tamper
with; '. .
"We have a great balance be-
tween businesses and homes
V here,"said Council President
Wayne Wllso~\. . who voted
against the ordinance that. es-
tablishedthe Lauth Property
Group development last ;week.
"Axe we going to llless with
the mix that has made Carinel
the . most desirable. address in
the state of Indiana? I'in not
willing to do that."
. Call Bill Ruthhart at 1:317-570-4482.
on and Marion' counties
New c.e.otel'
., ..": .
is last one" .
officials say
Lastpuzz;le . piece
The Lauth development will
completeretail . .,
developmerifon
each of the fou(
.' corners at the"
By Bill Ruthhart intersection of
bill.ruthhart@indystar.com 146thStreet and
As city officials. be~ towel" U.S. 31.
come Clay Terrace, anew 520,000 '
squarti-foot retail center, . to Car..;
'mel's northside,they alsowam
, that the dev~l()pment .}IVill be ,the
last of its Jdrid 41 the U;S. 31 com- ,
dor. .
. Cityw~tst() see
, office buildings,' not
retail centers, in ,rest '
OfU.~.31 overlay zone.
"After this, I don't even wantto
hear; of any more retail develop-
mentin the comdor, and I don't
wapt.to .see another developer
come in~ereselling another de-
velopment," council member Ron
Carter said. "This is it,I'm notvot-
ing 'for. any . more. retail develop- Brainard' said. "We~d like to, keep
ment there." tl;lat~paceopen fo~when.. the
Carmel's Plahning CoIIlI!lission bUsiness office.inarkef imp~ove~;"
and City Coundl took steps. . Brainard~d an exception was
Jiearly20 years ago to.lin1itthe. made two years ago, when the
liJn()Uotof development along council and Plahning coIDJlliS-.
U.S. 31 by creating'a special()ver~: sion d~cidedtoa1low retail de-
lay zone. That zone prohibits re- velopmentat the iriterse~on of
','tail development along that com- . 'u.s. 3l.'andl46th:Street.However,
dot, and the mayor and oth'e~ dty . he and other citY officials are not
offic~als are adamant about keep- Willing to make any more 'excep-
irig it that Way. tions. .
"1 would hope ;we don't see any ,'.
mo],"e retail there," M~or' Jim SeeD.S: 31, Page NA2
INO'IANAPOLlS BUSINE.SS JOURNAL. . SEPTEMBER 9-15,2002 .3
$90M center cleared
Judge rules
for.Oxford
Upscale retail project planned for Hamilton County in 2004
By Katie Maurer
IBJ Reporter
next spring with the center's
opening set for the third quarter of
2004, Lauth President Greg
Gurnik said. The price tag
includes costs for constrUction
and purchasing the ass~mbled
land from 20 separate owners.
. Some' of the ground-up to 20
acres-will be set aside for an
extension of Rangeline Road,
which currently ends at U.S. 31.
The new road will veer to the
northwest and cut through. Clay
Terrace on its way to l51st Street.
As a lifestyle center, Oay TerTace
is expected to include several.
upscale retailers and restaurants in
an open-air configuration. The
design of the center, spearl1eaded by
Dallas-based RfKLAssociates,.Win
evoke a "main street" feeling, with
heavy landscaping, benches, out-
door lighting, a variety of storefronts
and open space. Parking will be rel-
egated to space behind the center:
Lauth is not ready to identify
potential 'tenants, . but, according' to
Gornik. many will be the same
stores typically found in a tradition-
al shopping mall. With new .mall
constnIction on the declfue, many
well-known. chains are turning to
lifestyle centers for growth, he said
'''There's not a lot of new malls for
the retailers to go into and it d~n't
make sense for them to be in a typi-
cal strip center," Gornik said.
The relatively new concept of a
lifestyle center, named for Mem-
. phis-based d~veloper Poag & .
McEwen Lifestyle Centers, is one
of nine distinct shopping concepts .
recognized by the International
Council of Shopping Centers. .
Last winter, Icse convened a
task force to draw up a defInition
of the popular new retail format
and' identify some 30 lifestyle
centers for an industry report.
Of those, 17 are in the warmer
climates of Florida, CalifoInia, .
Georgia. South Carolina. Alaba-
ma. Tennessee and Texas; seven
See RETAIL page 14
A large retail mecca in Hamil-
ton County will be getting n~arly
half a million additional square
feet of shops and restaurants with
the newly approved Clay Terrace,
a $90. million "lifestyle center"
planned bya local developer. .
The Carmel City Council on
Sept. 3' approved the 520,000-
sqqare-foot project, which will
contain 450,000 square feet of
retail space and 70,000 square
feet of office space. Lauth Proper-
ty Group will develop the center
. over the next two years on 70
acres at l46th Street and U.S. 31
in northern Clay Township.
Clay Terrace will join two'
existing shopping centers in the
immediate vicinity-Village Park
Plaza on the east side of U.S. 31
and Greyhound Pass on the west.
Construction is expected to begin
Clay Terrace
Developer: Lauth Property Group
Cost: $90 million
Size: 520,000 square feet, 70 acres
Components: 450,000 square feet of
retail, 70.000 square feelof office
Projected annual retail sales: $188
million
Completloll-date: third quarter 2004
W:;,WiH f!lture site of Clay Terrace
."', existing retail
-- future Rangeline Road extension
Source: Lauth Property Group
18J GraphidBrad Turner and Katie Maurer.
./
14 · INDIANAPOLIS BUSINESS JOURNAL · SEPTEMBER 9-15, 2002
OXFORD
Continued from page 3
Securities and Exchange Commission
and the Securities Division of the Indiana
secretary of state.
Caudill didn't buy the former employ-
ees' arguments.
He ruled that the four meh had planned
for more than six months to start their
own business, that they used an Oxford
client list to solicit business through a
mailing, that they signed the non-compete
agreements and that, as a way to break the
agreements, they tried to use the securi-
ties allegations as leverage.
Oxford in April.
Those non-compete agreements pro-
hibit each of the financial planners from
doing business in a county with more
than five Oxford clients for one year after
leaving Oxford employment. Counties
covered by that agreement include Mari-.
on, Hamilton, Johnson, Hancock,
Delaware, Boone and Madison counties
and counties surrounding Fort Wayne,
Columbus and Bloomington.
The preliminary injunction is the latest
chapter in an ugly court battle that erupted
earlier this year.
In mid-April, financial planners Leslie
Michael, Richard Evans, John Wortman
and John C. Trott left Oxford within days
of one another. In part, the departures were
triggered by the discovery that the four
were planning to fonn their ownfmancial
planning business, OXford officers said.
Negotiations over their departures
commenced immediately, but the two
sides could not reach agreement.
Shortly after leaving Oxford, the for-
mer employees opened Valeo and,
according to court records, successfully
recruited about 50 of Oxford's approxi-
mately 120 clients.
In June,Oxford sued the financial plan-
ners and their new company to enforce
the non-compete and confidentiality
agreements.
In July, the former employees responded
by alleging that the non-compete and
confidentiality agreements had been
broached because Oxford had committed
securities violations. The former employ-
ees also filed complaints with the U.S.
"Some are saying
that non-competes
are not worth the
paper they're
written on. That's
not true.".'
John F. Maley. Barnes & Thornburg
attorney representing Oxford
Caudill prohibited the planners and
their company from disclosing or using
any Oxford information in their posses~
sion, and ordered them to give Oxford's
property back to the company and to
allow a computer forensic expert appointed
by Dxford to go through their computers
and personal planners.
"We asked' for strong relief and we
obtained strong relief," said John R.
Maley, one of the Barnes & Thornburg
attorneys who represented Oxford.
He also said the decision reinforces the
importance of non-compete agreements.
"Some are saying that' non-competes
are not worth the paper they're written
on," he said. "That's not true."
Maley said he also expects "the regula- .
tory bodies will be interested in
[Caudill's] findings," which Oxford plans
to share with them.
E. Davis Coots, attorney for the former
Oxford employees, said his clients are
reviewing their options.
"This is their livelihood and their liveli-
hood is going to be seriously curtailed
while this order is in place," but they will
comply, he said. .
The four men are considering an
appeal, Coots said, but the terms of the
injunction would remain in force during
the appeal process.
Maley said there were other ways the
planners could have pursued securities
concerns.
"If they really had concerns, they could
have walked into the compliance officer
and reported them," Maley said; Oxford
has a compliance officer, and two law
firms work on regulatory compliance for
. the company, he said.
Maley said Oxford is planning more
legal action against the four former
employees and Valeo.
"Oxford has been greatly damaged and
intends to pursue it," he said.-
E-mail: pmorrison@ibj.com
UPCOMING FOCUS
Professional Services
SEPTEMBER 30
RETAil
Continued from page 3
are in the Midwest; four in the West; and
two on the East Coast. Nearly all are in
affluent areas, according to the ICSC
report.
Cold weather can dampen sales at
lifestyle centers, but they are usually less
expensive to operate than enclosed malls,
said Mark Perlstein, a retail broker whose
firm, The Linder Co., owns the Mer-
chants' Square and Merchants' Pointe
shopping centers at 116th Street and Key-
stone Avenue.
Unlike a. regional mall, which is
enclosed, or a power center, which is
anchored by several "big-box" stores, a
lifestyle center usually contains several
small specialty stores, sit-down dining
and entertainment in a village-style out-
door setting. According to ICSC, popu-
lar tenants at such centers are Gap, Ann
Taylor, Banana Republic, Victoria's
Secret, Williams-Sonoma and Pottery
Barn.
A true lifestyle center does not have
large anchor tenants such as department
stores or big boxes like Wal-Mart, Home
Depot or Meijer. Most range in size from
150,000 square feet to 500,000 square
feet, while a regional mall could be as
large as 800,000 square feet.
Shopping centers around 146th and
U.S. 3 f contain at least 1 million square
feet and include Target, Wal-Mart,
Kohl's, Menard's, Lowe's, Marsh Super-
markets, Barnes & Noble, Galyan's and
Regal Cinema.
While that seems like a heavy dose of
retail, the area population is actually
underserved, consultant Karen Gentle-
man of Gentleman Associates said.
"It's a gem of a site," she said of
Lauth's acreage. "I've been in the retail
research business since 1980 and I can't
recall a site with this kind of development
potential. "
According to her research, there is .13.3
square feet of per-capita shopping center
space in the area, compared with the
national average of 22 square feet. And
demographic data show the population in
the region, which covers most of Hamil-
ton County, growing twice as fast as the
rest of the Indianapolis area. .
But some aren't convinced by the num-
bers.
"I personally was not comfortable with
whether or not that amount of retail was
needed," said Wayne Wilson, an at-large
member of the City Council, who, along
with councilor Kevin Kirby, voted against
the project. The vote was 4-2. Councilor
Luci Snyder did not vote.
Wilson, who is running against Snyder
and Mayor Jim Brainard in next May's
Republican mayoral primary, said he is
concerned that other retail centers in
Carmel could lose tenants to Clay Ter-
race.
He also took issue with the retail use
from a revenue standpoint. Clay Ten"ace
will be in a special tax increment financ-
ing, or TIF, district that taxes revenue cre-
ated by the project to fund road improve-
ments in the area. Office space would
generate much more revenue, Wilson
contended, providing that the city would
bide its time until the listless office mar-
ket rebounded.
"I guess I'm one of those individuals
who was willing to wait," he said.-
E-mail: kmaurer@ibj.com