Buckley questioned whether as a society we were “becoming too dependent on incentives” from the public sector.

“There are some who say incentives ought to be eliminated altogether,” said Downing. “Some say we need to expand certain incentives. So this is going to be a difficult legislative session.”

When questioned once again as to whether political jurisdictions had become too involved in the development process, Browning answered: “I know it looks like public sector is involved in most projects, but it’s probably not as much as you think we are.”

Although Chase Simmons recognized the problems implicit in government involvement, he noted, as well, that until rental rates go up, or construction costs get slashed, incentives will remain a critical part of development, especially in infill areas.

“Ten years ago,” said David Block, “we were doing stuff conventionally. We didn’t have TIF and tax incentives, but that’s when restaurants and retailers and other people were paying the freight. Volumes were there, and everything was good.” Times have changed. “You have to do what you have to do.”

“I haven’t seen a pro forma yet with structured parking in retail that works without incentives,” added Simmons. “If we want this group to focus on infill, they need incentives to get them done.”

Buckley observed that the way to attract families to infill areas begins with good schools, but does not end there. “If we can develop good quality shopping in these infill areas,” added Buckley, “I think we can bring a lot of people back.”

Department Stores and Hot Spots

Owen Buckley asked Dan Lowe of RED Development, who works with numerous department stores, how these operations seem to have shaken the doldrums and made a comeback.

As Lowe noted, the department stores that have remained viable today—J.C. Penney’s and Macy’s in Lee’s Summit, for example—did a great job of understanding what their consumers were looking for and providing it.

“What I think is most interesting with Macy’s,” added Lowe, “is that they understand the definition of value as much broader than simply price.” Among the things that add value to a shopping experience, according to Lowe, are convenience, easy parking, and good customer service.

As Jeff Haney noted, the Lee’s Summit Macy’s and J.C. Penny’s opened without the support of a true lifestyle center with other tenants but have prospered nonetheless. Beauty Brands and other shops have opened there, as well. “It’s a mixture,” said Haney. “It’s not a pure high-end lifestyle center; it’s a mixture really of what works.”

Other parts of the metro are prospering as well. John Rubenstein said of Barry Road and I-29, “It’s booming.” He also cited Missouri-291 and I-70 in Independence. “That whole quadrant is doing well,” he added, “and I think Johnson County does well, although it’s horribly over-stored.”

Owen Buckley countered, quoting a sage within the industry, “We’re not over-stored. We’re under-demolished.”

Jeff Berg observed that the Village West area around the Kansas Speedway also was doing well. He cautioned, however, that within each category of retailers there are fewer players these days.

David Block pointed out that the Liberty Triangle area “is as hot as anywhere in town.” He added, however, that the ground costs in that area were covered by tax-increment financing (TIF). Without those incentives, Block added, “It’s going to be hard to see new development happen.”

As a result of incentive packages and increased competition for good tenants, David Hickman argued, retailers are relocating and taking advantage of some very aggressive tenant packages. “We’re definitely seeing some shifting going on right now,” he noted.