Feature

MSCA Connection February 2012msca-online.com

Minnesota Shopping Center AssociationVol 26. No. 2

1

FEBRUARY 2012

In this Issue

Success Story ---------- FEATURE 1

Punch Pizza ----------- SNAPSHOT 1

Gent Cuts ------------- RISING STAR 3

Driessen/Wittrock - MEMBER PROFILES 5

Deals, Trends etc - PROGRAM RECAP 6

Legislative Update -----------7

Ifyou’ve shopped at some of the Twin Cities regionalmalls recently, you may have noticed the start or finishof renovation projects such as Southdale, Mall of

America, and Maplewood Mall. These properties are puttingsignificant investment into new pylon and monumentsignage, exterior entries, interior mall common spaces,updating top to bottom flooring, paint, ceilings and lighting.This may be a surprising commitment of funds during adowntime in the retail industry when so many retailcompanies are employing cost-saving measures andscaling back on investments, especially propertydevelopment and enhancements.

Burt Flickinger, director of retail consultancy StrategicResource Group recently noted that “the U.S. has entered a500 day retail recession, and before it’s over, the U.S. will seeweaker retail sales, more store closures and even additionalretailers joining Borders in bankruptcy.”1 Given this trend,

mostly due to a weak labor market and low consumerconfidence, why do mall owners invest in such large scaleimprovements?

According to Maureen Bausch, Mall of America’s executivevice president of business development, it was a keybusiness decision. “We had commitments from retailers newto our regional market who would sign leases if mallwalkways, or boulevard upgrades occurred. “Mall ofAmerica, known for housing a strong collection of nationallysought after retailers, prioritized their requests. As a result,South Avenue was transitioned into a luxury destination,touting tenants like Desigual, Michael Kors, Armani A/X andStuart Weitzman. Southdale Mall, purchased by Simon in2007, will begin renovations this summer/fall. The mall hassuffered through the recession with a major anchor vacancyfor five years and experiencing a 13% vacancy rateaccording to Cushman & Wakefield.2 The renovation will

Connectionby Natina James, RSP Architects

A Success Story during aRetail Recession

Concept Description: Quick-casual concept, focused on authenticwood-fired neapolitan pizza. 16-years-old, Twin Cities-basedWebsite: www.punchpizza.comNumber of Units: 7Current Locations: Highland Village, Eden Prairie, Lake Calhoun,Northeast Minneapolis, Wayzata, Grand Avenue, Stadium VillageType of unit: CorporateOwner: John Puckett and John SorannoGrowth Plans: Focused on metro area next 5 years, 1-2 stores per yearTotal/Typical SF: Approximately 2,100 sfTypical Site Characteristics: Good visibility and parking, highenergy retail area, high quality co-tenants, outdoor patioReal Estate Representative: Mike Finkelstein, The Ackerberg GroupArchitect: Natina James, RSP Construction Contractor: Vern OlsonAdditional Facts/Narrative: Punch has experienced healthy salesgrowth in this difficult retail environment. Customers areincreasingly valuing high quality foods, served efficiently. The pizzacooks in 90 seconds at over 800 degrees. Developmentconcentrated in established retail markets along and inside of the494/694 ring, with priority to Edina and Roseville locations.

Snapshot

Punch NeapolitanPizza

msca-online.com MSCA Connection February 2012

Success Story - continued

2

continued on page 7

bring a new anchor, Herberger’s, andshould build momentum to sign newtenants and improve existing relationships.

Other strategies to attract and maintaincustomers include creating destinationdining, family restrooms, kids’ play areasand hot spots for wireless internet and othermedia. Locally, Maplewood Mall hasrenovated its existing restrooms as well asadding family restrooms and nursinglounges. Developers are experimenting withother interesting ideas to attract or keepmen in their properties longer. Some havecreated a living room with soft seating andtelevisions offering news and sports. Wehope to see it appear at some properties intown this fall.

Investment in technology

Notice how when you surf the web, adstailored to your recent search history popup on the screen? Imagine a store thatknows your shopping history, preferencesand sizes, and when you walk in the door,you are greeted with a text listing items thatmight interest you. The stores may not bethere yet, but it’s starting to happen.“Haydock sees the in-store experienceincreasingly meshing with and mimickingwhat happens online and a time whencustomers will be given incentives toidentify themselves the moment they step inthe store through some type oftechnology.” Some retailers and owners arealready investing in new technology.Shopkick is an example of retailers usingcommunication through smartphones tohave customers earn points upon checkinginto the local store.3 More traditionalpromotions through technology bring incustomers. The Event Rotunda at Mall ofAmerica unveiled an approximately 24’x13’LED television and a new Bose soundsystem. This allows more people to enjoyevents by improving sight lines and soundfrom every location and level in theRotunda. They’ve also introduced newdigital “on-mall signage” (basically two LEDscreens back to back) which improves theexisting advertising program. Now tenantshave an affordable and easy way tocommunicate information, including newtenant announcements. The electronicdisplays are the sustainable way to deliverinformation, increase the amount ofretailers advertising, and provide fresh, newcontent in comparison to the existingprinted banner advertising program.

What about the internet?

Internet shopping has replaced catalogueshopping for many in the younger

generations. Bricks and mortar stores mustseamlessly merge their inventory,distribution and management programswith their online partners. They must provideservice, expertise, convenience andexperience. The customer must have a“seamless” experience – remember whenthe customer was always right? There is noone answer to what retail should be, but toexperience some very different solutions tothe same problem – turn on that computer,iPad or phone and go shopping onAmazon.com. Then hop in your car andstop in at Apple and go across the street toBest Buy. Which were successful? Was itfrustrating not having an expert to talk toonline or did the numerous reviews andvideo suffice (as offered by Amazon)? Werethe Apple employees knowledgeable? Didthe store have what you wanted in stock? Ifnot, could they have it shipped to the storefor free? Could you pay for your item rightwhere you were standing (the employeesutilize a mobile device to run your creditcard)? One analyst signaled out Best Buy asan example of a poor in-store customerexperience. “The ‘shopping environment’ isthe opposite of fun and informative. It’sdepressing and humiliating, as in ‘I can’tbelieve I had to go to Best Buy to get this.’”4

Customers want access to knowledgeableemployees instead of seeking outemployees who do not know the products.Brick and mortar retailers need to transformtheir liabilities of physical locations withlimited hours, high labor costs and inventoryinvestments into assets that complementtheir brand, expertise and overallexperience.5

Regardless of available technology, societyalways needs gathering places and publicspaces. Regional malls have supplementedhistorical gathering places such as citycenters. Bausch emphasized that thesuccess of renovation is the attraction ofthe new tenants, but the renovatedenvironment certainly helps too. Worldwide,a retail renaissance is occurring based onthe observations that brick and mortarstores can provide the same benefits asonline shopping, in addition to a pleasantshopping experience itself, and the instantgratification of a purchase. The future ofconsumerism is urban, which in turn isexperienced through a retail culture. Inother words, consumers still enjoy shoppingfor products and services in the real worldmore than ever, and Mall of America, withits new upgrades, can deliver on thatpromise.

It takes a commitment to develop andmaintain an evolving customer experience,

2012 Sponsors ACI Asphalt Contractors, Inc.

Aspen Waste Systems, Inc.

Barna, Guzy & Steffen, Ltd.

Bremer Bank, N.A.

CBRE

CSM Properties

Chuck & Don's Pet Food Outlet

Colliers International |Minneapolis-St. Paul

Cushman & Wakefield/NorthMarq

Cutting Edge PropertyMaintenance

Doran Construction

Faegre Baker Daniels LLP

Fendler Patterson Construction, Inc.

Fredrikson & Byron, P.A.

Gray Plant Mooty

Great Clips, Inc.

H.J. Development, Inc.

Inland Real Estate Corporation

Jones Lang LaSalle

Kraus-Anderson Companies

Larkin Hoffman Daly & Lindgren Ltd.

The Lawn Ranger Outdoor Services

Leonard, Street and Deinard

M & I, a part of BMO FinancialGroup

MFRA, Inc.

McGladrey

Messerli & Kramer P.A.

Mid-America Real Estate –Minnesota, LLC

Midwest Maintenance &Mechanical, Inc.

Minneapolis/St. Paul BusinessJournal

Minnesota Real Estate Journal

Oppidan, Inc.

The Opus Group

Paster Enterprises

Prescription Landscape

RLK Incorporated

Regis Corporation

Robert Muir Company

Ryan Companies US, Inc.

TCF Bank

TCI Architects/Engineers/Contractor, Inc.

Target Corporation

U.S. Bank

United Properties

Venture Mortgage Corporation

Weis Builders, Inc.

Wells Fargo Bank, N.A.

Westwood Professional Services, Inc.

Wipfli LLP-CPAs & Consultants

MSCA Connection February 2012msca-online.com 3

In the past, whenever Michael Boyle wasin need of a haircut, he was disillusionedwith his choices. He desired more

attention and service than one can find ata typical discount cuttery and felt out ofplace at his wife Crystal’s full-service,female-oriented salon. This market gappresented an opportunity for the Boyles todevelop Gent, a haircut and groomingconcept focused on men. In August, thepair debuted their first location at theintersection of Grand Avenue and VictoriaStreet in St. Paul, Minnesota.

Gent’s focus is on salon services for men ina comfortable, casual environment. Itcombines the services of a traditionalbarbershop with the offerings andamenities of a full-service salon at areasonable price point. Cuts start at $29and other services include color, straightrazor shaves and mustache and beardtrims. (Gent also offers a 10% discount to allmilitary, police and fire personnel.)

The masculine,comfortable receptionarea welcomes you withoversized leather chairs,a 55” flat screen TV, afridge stocked withwater and soft drinks, afresh coffee station andiPads preloaded withgame and magazineapps. Six stylist stationsare each equipped withold-school barber chairs

and dedicated shampoo sinks as well asTVs for individual client viewing.

Gent offers several lines of premium haircare products as well as shaving andgrooming merchandise. In addition, Gent

carries men’s accessories and gift itemsincluding cufflinks, wallets and barware.Over time, the Boyles intend to expandtheir retail and gift selection. Appointmentscan be made at 651-797-4294 and walk-insare welcome.

Gent Cuts & Grooming, 867 Grand Avenue,St. Paul, 55102; 651-797-4294;www.gentcg.com

by Andy mcDermott, Shea, Inc. Rising Star

Gent Cuts & GroomingTHIRDTHURSDAYS

NExT mEETING: Thursday, February 16, 20124:00 pm – 5:00 pm atCooper Pub – West End1607 Park Place Boulevard, St. Louis Park 55416

MSCA member hosts arePeter Armbrust and BradKaplan, both ofCushman & Wakefield/NorthMarq.

Who: MSCA membersand their colleaguesWhat: Casual networkinghosted by MSCAmembersWhen: Third Thursday ofevery month from EITHER8:30–9:30 am OR (newthis year) 4:00–5:00 pm.Why: Create synergy inthe commercial realestate industry—shareideas and stories andmake new effectiverelationships.

There is no fee for thisevent. Food andbeverage are notincluded. RSVP to Stacey ispreferred, but notrequired.

MSCA ReceivesAward

NAIOP presented MSCAan award at theirAwards of Excellenceprogram held onJanuary 26. MSCAreceived a DiversityAward for outstandingcontributions inpromoting, supportingand increasing diversitywithin commercial realestate.

n n Galleria Edina has lots going on: Schmitt music is moving to nearbySouthdale Square shopping center in Richfield. Also leaving are A Pea inthe Pod and Que Sera. Both are leaving at the end of the month.

Home design retailer Arhaus will open a 15,000-sf store in the fall.European-influenced footwear and accessories store, marmi, will opena 1,980-sf store in the late summer. Twin Cities-based Allure IntimateApparel, is opening a 1,800-sf space. Several Galleria stores aremoving to new spots in the mall, including Bang & Olufsen, ColeHaan, Papyrus and Hammer made.

n n A new Dollar Tree store will be opening in the Rice CreekPlaza in New Brighton across from Cub Foods.

n n Tao Natural Foods, 2200 Hennepin Ave. S., closed forremodeling Jan. 1. The business has been open since 1968 with acafé serving all organic and mostly vegetarian food, and a storewith supplements and other natural food products. The retailarea is being condensed to make room for an upgrade to thecafé which will offer more seating, an expanded menu, moregrab-and-go, pre-prepared items, and the addition of an all-organic selection of beer and wine.

n n Duplex, a restaurant at 2516 Hennepin Ave. S., has closedafter a six year run.

n n Bloomingdale’s announced they will close the Mall ofAmerica store in March. Reports have speculated that Vonmaur department store may fill the space after a recentannouncement that it would replace Bloomingdale’s atPerimeter Mall in Atlanta.

n n Blockbuster Video announced that it will close 11 moreTwin Cities area locations. The list of stores includes: AppleValley, Blaine, Cottage Grove, Columbia Heights, Duluth, EdenPrairie, New Hope, Savage, Wayzata and Woodbury, plus one inHudson, Wis. Blockbuster stores are generally considered to beprime real estate locations.

n n Charming Charlie, a women’s fashion boutique, willopen in 9,000 sf of the Circuit City space that closed in ArborLakes, Maple Grove. The new store will be the third location in theTwin Cities. The other locations are in Woodbury and at West Endin St. Louis Park. 

n n Apple recently announced plans to operate “mini-stores”inside 25 Target stores in markets that cannot support a full lineApple store. Target will have an agreement to offer Apple productsin a special space set aside for the mini-stores.

n n Dollar General, which operates 9,800 stores in 38 states,announced that it plans to open 625 new stores in 2012. There are

currently 16 locations in MN, and a company spokesperson said thatDollar General will expand the number of stores in MN.

n n mona Restaurant will replace the Black Bamboo restaurant in theAccenture Tower. Mona will offer American cuisine with a “chef driven”

menu.

n n The Valley Tap House is now open in Fisher Marketplace in AppleValley. The space was formerly occupied by Majors Sports Cafe. The new

restaurant offers casual dining with American cuisine.

msca-online.com

MN Marketplace

M A R K E TEvents

Feb 16 Third Thursdays event

Feb 21 Learning Session

Mar 7 monthly Program – Trends

Mar 14 Business Day at the Capitol

Mar 15 Third Thursdays event

OFFICERSPresidentPaula mueller, Northtown Mall/Glimcher Properties1st Vice PresidentRonn Thomas, Cushman & Wakefield/NorthMarq2nd Vice PresidentDeborah Carlson, Cushman & Wakefield/NorthMarqTreasurerBob Pounds, Colliers InternationalSecretaryDana Andresen, Chuck & Don’s Pet Food Outlet

DIRECTORSTony Barranco, Ryan Companies US, Inc.Janet Goossens, Kraus-Anderson CompaniesTom Heuer, Aspen Waste Systems, Inc.Jen Helm, Cushman & Wakefield/NorthMarq Curt Larson, City of BlaineHans Rasmussen, Robert Muir CompanyJennie Zafft, Cousins Properties, Inc.Immediate Past President (as Director)Peter Berrie, Faegre Baker Daniels

COmmITTEE CHAIRSGolfCindy Weber, Engelsma Construction, Inc.michael Gross, Midwest Management, Inc.Learning SessionCindy macDonald, Kraus-Anderson CompaniesKris BrandtLegislativeLeah maurer, Cushman & Wakefield/NorthMarq Paul Berg, U.S. BankmSCA CaresZach Stensland, Colliers InternationalHerb Tousley, Exeter Realty CompanyNewsletterAndy mcDermott, Shea, Inc.Gregory Brenny, Fafinski Mark & Johnson, P.A.ProgramBrent AndersonJeff Orosz, CMARetail Report michael Broich, Target CorporationSponsorshipShelly muelken, Marketplace CommercialWendy madsen, Ryan Companies US, Inc.STARR AwardsDerek Naill, Associated BankLuann Johnson, Rochon CorporationTechnologymark Robinson, Paster EnterprisesKate mcCall Beazley, Beazley Consulting, LLC

STAFFExecutive DirectorKarla Keller Torp(P) 952-888-3490 (C) 952-292-2414 (F) 952-888-0000ktorp@msca-online.comAssociate DirectorStacey Bonine(P) 952-888-3491 (C) 952-292-2416 (F) 952-888-0000sbonine@msca-online.com

2012 Leadership

W A T C H

MSCA Connection February 20124

Press releases are printed based upon availability of space and relevance to the local market.

To view mSCA programpresentations,

visit www.msca-online.com, go to Events, and

click on Presentations.

MSCA Connection February 2012

Primary career focus? Development of and investment in retail real estate.Secret talent? Bilingual.One word that describes you? Optimistic.First car you owned? 1963 Plymouth Fury.What would you rather do than go to work on monday morning? Travel with my family.What did you want to be when you grew up? An Olympian.Very first job? Janitor at the Culligan plant.mentors? Bill McHale, Whitney Peyton, Mike Scott, Doug Sailor.Favorite cereal and why? Wheaties, Breakfast of Champions! If you were an animal, what would you be and why? Ruby-throated Hummingbird; they flyforward and backward, hover in place, and with speeds of 70+ mph can take out aneagle in one strike.Favorite places that you have travelled to? Katmandu, Tikal, Guilin, Rome.How long have you been an mSCA member? 20+ years.

Bill WittrockRSP Architects, Ltd.

Vincent DriessenThe Driessen Group, LLC

Member Profiles

Primary career focus? Retail Architecture for 28 years.Secret talent? “Cliff Claven”-like grasp of the obvious.One word that describes you? Boy Scout.First car you owned? 1971 Ford Pinto Wagon affectionately known as the “Mercedes Pinto.”What would you rather do than go to work on monday morning? Be a Kindergartenteacher for the morning. What did you want to be when you grew up? If ever were to grow up…I have alwayswanted to be an architect. Don’t know why.Very first job? Besides delivering 220 papers for the Mankato Free Press from 4th-9th gradein school, I detassled corn for three summers and also held a part-time short-order cookposition with El Seis Mexican Restaurant in Mankato. mentors? Michael Plautz, RSP founder; Norm Abplanalp, Montgomery Ward Sr. Architect;Dale Everson, Madison Marquette; Bob Lucius, RSP.Favorite cereal and why? Oatmeal with maple syrup, raisins and walnuts. One bowl lasts allday! Besides, it is the classic breakfast of the Midwest!If you were an animal, what would you be and why? I would be a river otter because theyslide on their bellies for fun.Favorite places that you have travelled to? Backpacking in Maine; Sienna, Italy; Seattle, WA.How long have you been an mSCA member? Since 199-early-something; a long time, Iguess.

5msca-online.com

Bryan LarsonMadison Equities

Paula PortKW Commercial Midwest

matthew AllmanOppidan, Inc.

Bill TroutDonlar Construction

Nick murnaneThe Opus Group

Ryan BluhmWestwood Professional Services, Inc.

matt LucasSteiner Development, Inc.

Jim GrayNorthtown Mall/Glimcher Properties

Don ParnellMenard, Inc.

Hugh D. RobinsonTri-Land Properties, Inc.

Craig SeabergVillage Green Landscapes

maura CarlandColliers International | Minneapolis - St. Paul

Debbie FerryGoodwill Easter Seals

Brian BusserTCI Architects/Engineers/ Contractor, Inc.

New Members

Steiner Hires Lucas.Steiner Development, Inc.announces the hiring ofMatt Lucas as Vice President– Development. Matt isresponsible for sourcingdevelopment business forthe Steiner companies aswell as real estateinvestments for the Steinerportfolio. Matt will conductunderwriting and marketanalyses, and negotiate thepurchases of developmentsand acquisitions for thecompany. Additionally, hewill take the lead forSteiner’s projects for allgovernmental approvals.

Please send Member Newsto Stacey Bonine.

Member News

msca-online.com MSCA Connection February 20126

JANUARY 2012ProfessionalShowcase

NaturalGreen Landscapemanagement is a full-service provider oflawn/landscapeinstallation andmaintenance, as well assnow and icemanagement. Theirexperienced fieldoperators are supportedby an office staff which isdedicated to providingMSCA professionals withuseful and timelymaintenance updatesand cost-effectiveprograms that are withinbudget. Contact themtoday to ensure worry-free maintenancetomorrow.

by Judy Lawrence, Kraus-Anderson CompaniesProgram Recap

Deals, Trends & Outlooks

Barry Brottlund of Insite CommercialReal Estate, Inc., and Bruce Carlson ofMid-America Real Estate, moderated

an informative panel on what variousbrokers see on the upcoming trends in ourlocal retail industry.

2011

Looking back on 2011, the panel agreedthat things had improved over the periodfrom 2008 to 2010. Stefanie Meyer of Mid-America Real Estate saw 2011 as arebounding year, where Chris Simmons ofColliers International stated that last yearwas much improved over the declines wehave seen since 2008 and noted thatsubstantial vacancy has been reduced dueto the infilling of many of the big boxproperties.

2012

Meyer felt that 2012 is going to be more ofthe same; rents remaining flat, while kick-outs, free rent and co-tenancy clauses willcontinue to be requested. She is primarily atenant representative, so she is pleased tonote that the market is still tenant driven.

Justin Wing of CSM Corporation echoed thistrend and commented that negotiationswere really tough. Chris Moe of H.J.Development pointed out that thecorporate tenants feel no sense of urgencyso negotiations can really drag out.Simmons indicated that he expectedadditional fallout in the coming yearespecially in the office supply, bookstoresand electronic areas. It seems that there isa tendency for today’s consumer to browsethrough some stores, secure the SKU fromthe good that they desire and go homeand surf the internet for the best pricing. It isas if some of the retail stores are simplyacting as showrooms.

Grocery-anchored centers continue to bethe most desirable. There are less closings inthese centers. Whole Foods, ALDI, andTrader Joe’s have been infilling many of thebig box vacancies in town. Simmons feltthat Cub Foods’ and Coborn’s newlocations would pick up once the housingmarket improves.

As for the coming year, the panel expectedto see growth in quick-service food. Whilesome expected growth with discounters,Meyer noted that, in some circumstances,Twin Cities’ demographics, includingdisposable income and education, maymake the area somewhat undesirable forthe discount user such as Dollar Store andGoodwill. She also observed that sometraditional “mall” tenants are looking atother venues. She cited tenants such asAnn Taylor Loft looking favorably atgrocery-anchored centers.

miscellaneous

n The panel felt that landlords wouldcontinue to see co-tenancy andexclusive requests.

n The good thing about technologyadvances is that retailers like to see apresentation that can be downloadedonto their iPad and reviewed beforetheir site visit, thus narrowing down theproperties to be visited. This saves boththe tenant and the broker time.

n The bad thing about technologicaladvances is that some people becomeso dependent on their phones, iPadsand email that they are unable tocommunicate effectively face to face.

Conclusion

In closing, it is important to note that asbrokers or tenant representatives, we needto be knowledgeable about the market aswell as the properties. This is a relationshipbusiness, and success or failure will dependon your ability to relate to both the tenantand the landlord. We need to manage ourtenant’s expectations as well as be directwith them regarding the nature of thebusiness.

Finally, when asked what made him excitedabout going to work each day, Moe statedthe most profound comment of the sessionwhen he said, “I am excited to go to workeach day because there is a cubicle therewith my name on it.” Amen.

January presenters – l to rBruce Carlson, Mid-America Real Estate (moderator)Chris Simmons, Colliers InternationalJustin Wing, CSM CorporationStefanie Meyer, Mid-America Real EstateChris Moe, H.J. DevelopmentBarry Brottlund, InSite Commercial Real Estate (moderator)

Be sure to check our newformat for registeringonline for MSCAprograms. Log in underyour profile and it pre-fillsall of your information. Inaddition, if you hold a CElicense, you will now bereceiving your certificatesvia email and, goingforward as of January 1,2012, you are able toaccess all of your MSCACE credits through yourprofile!

Tech Tip:

RegisteringOnline forMSCA Programs

Small Talk

The high profile issues for the 2012 legislative session, whichbegan on January 24, 2012 will be a bonding bill, aproposed jobs plan, and the selection of a construction siteand financing plan for a new Vikings Stadium. This istraditionally a “short” session year, in which major budgetissues are off the table.

Unlike the 2011 session, this legislature is fortunate to bestarting with a budget surplus instead of a deficit.Minnesota’s economic forecast was released in Novemberand projects an estimated $876 million dollar balance forthe 2012-13 biennium, all of which is statutorily dedicated tostate reserves.

An important issue on the mind of many legislators will be theNovember elections; when all of the members of the MinnesotaHouse and Senate will face reelection in new districts.

Specific issues on the 2012 Legislative Agenda for MSCA:

n Statewide Property Tax. Lawmakers may reduce theStatewide Property Tax and vote to eventually phase itout entirely.

n Sales Tax Expansion. Expansion of the state's sales taxbase has already been discussed as a way to increaserevenue collections. An expansion could includeclothing, tax preparation, advertising and legal services,and other services.

n Transportation Utility Fee and other Impact Fees.Proposals to allow local units of government to imposefees on property owners could be seen as a way tomitigate other cuts to local governments.

n Taxing Internet Sales. Proposals to collect sales tax oninternet sales will be discussed during the 2012 session.

MSCA Connection February 2012msca-online.com 7

People you know,

People you trust.952-937-5150 westwoodps.com

and a brand experience. Mall owners also have begunhosting events to attract customers, as well as attractingnew tenants and creating unique and welcomingatmospheres. Locally we will see more competition toattract customers to retail venues. For instance, MOA iscommitted to completing the Mall renovation through2016 with an average budget of roughly $10 million peryear.6 Next up is the southeast courtyard; in the fall wewill see Southdale’s renovation, and the Galleriacontinues to evolve. Retail venues are trending towardcreating quality destinations. Experiences rule.

1 http://www.cnbc.com/id/43881205/US_Is_at_the_Start_of_500_Day_Retail_Recession_Analyst“US is at the start of 500-Day Retail Recession: Analyst”

2 http://www.startribune.com/business/112835989.html “Herberger’s likely to fillhole at Southdale anchor hole”.

3 http://www.portfolio.com/companies-executives/2012/01/09/how-data-is-changing-customer-service-at-retail “The Future of Retail”.

4/5 http://www.forbes.com/sites/larrydownes/2012/01/02/why-best-buy-is-going-out-of-business-gradually/5/ Why is Best Buy going out of Business… Gradually

6 http://www.bizjournals.com/twincities/print-edition/2011/02/11/mall-of-america-to-spend-7m-on-east.html “Mall of America to spend $7 million on east siderenovations”

Success Story - continued from page 2

Legislative Update

msca-online.com MSCA Connection February 20128

Stats: S O C I A L m E D I A

The social media landscape isfragmented. A recent study byJanrain finds people use Facebookto interact with friends and family,Twitter to follow influencers andshare opinions, LinkedIn for theirprofessional network, and Gmail,Yahoo! or Hotmail to communicatedirectly with contacts. Combined,these networks boast over 1.5billion accounts.

Social Login and SocialSharing Trend Data(% of Online Social Media Users)

Social media Q4 Q32009 2011

Facebook 27% 42%Google 37% 29%Yahoo! 11% 11%Twitter 6% 8%Windows Live 4% 4%Other 14% 5%

Social Site Preference forRetail Shopping(% of Online Social Media Users)

Social media Q1 Q32010 2011

Facebook 39% 49%Google 22% 29%Yahoo! 26% 12%Twitter 3% 3%Windows Live 5% 5%AOL 3% 3%

Source: Janrain, November, 2011http://www.mediapost.com/publications/article/163463/social-sharing-trends.html

NEW CHAPTERIt's January again, and not only does it mark thebeginning of a new year, but also the beginning of anew chapter for The Caring Tree. The Caring Tree wasfounded in 1993 by the Minnesota Shopping CenterAssociation (MSCA) as a statewide outreach project. Since that time, TheCaring Tree program has been a collaborative effort between social serviceagencies, the community, the MSCA and its members.

The Caring Tree’s mission is to promote educational success for Minnesota’s K-12 students in-need by ensuring that they have the appropriate schoolsupplies. With today’s economy, our year-round campaign is as important asever. To date, nearly 200,000 students have enjoyed a better start to theirschool year, thanks to The Caring Tree’s collection of financial contributionsand school supplies.

With the focus on continuing to assist as many students as possible, The CaringTree board has appointed a new executive director, Melissa Philibert. Long-time leaders Karla Keller Torp and Stacey Bonine will be transitioningadministration over the coming months.

Melissa has spent the last 11 years working in financial services, in relationshipmanagement, product development and operational management roles.The variety of these positions will serve her well as she takes over The CaringTree reigns. Melissa was born, raised and currently resides in South Minneapoliswith her husband and their two young boys. She has a Bachelor’s Degree inCommunications from the University of St. Thomas, and a passion for givingback to the community.

Melissa will be dedicated solely to supporting the mission and goals of TheCaring Tree, and it is our hope that while there is a new contact, you continueyour support whether financially or in-kind. We appreciate all those who haveplayed a part in The Caring Tree's past success, and look forward to theexciting opportunities in store for 2012 and beyond!

Warm Regards,

Karla Keller Torp n Stacey Bonine n Melissa Philibert

Please note new contact information for The Caring Tree:

Melissa Philibert, Executive DirectorThe Caring Tree5413 Nicollet Avenue, #130, Minneapolis, MN 55417 Phone: 612-834-1700 Fax: 952-238-6681melissa@caringtree.orgwww.caringtree.org

Small Talk

Do you, as an mSCA member, know exactly how many networking opportunities there are each year within mSCA?

n 10 monthly programsn 6 learning sessionsn Retail real estate programn STARRSM Awards programn Annual golf tournamentn Annual bowling fundraisern A minimum of 14 Third Thursdays networking (new this year – offering morning AND afternoon on some occasions!)n Business Day at the Capitoln Legislative education sessionn New for 2012: Four (4) philanthropic volunteer networking opportunities!

maximize your visibility for yourself and your company and increase your networking!

My MSCA