CRAP ALERT!* New Mall Opens in Lehi

In what seems like an exercise in absurdist theater, Lehi has just opened a new mall: The Outlets at Traverse Mountain. Apparently no one from that city has ever visited any other cities and consequently observed that malls are a colossally bad investment. Just last week in fact I mentioned that the best local example of a mall is in serious trouble.

In reality this is Salt Lake City’s mall bubble expanding outward; each successive developer or community thinks a new mall will be an economic savior. And it is, at least until another developer comes along and builds another, better mall.

In economic and development circles, this approach (usually as applied to housing) is often referred to as a Ponzi scheme. Building ever more malls as the existing ones fail seems to fall into the same category.

So who is foisting this Ponzi scheme onto Utah County? Apparently it’s the Craig Realty Group, a Newport Beach-based shopping center developer “that specializes in upscale factory outlet centers.” That quote comes from this BS-laced press release.

Naturally, the Craig Realty Group (via KSL) — which seems to have used a computer and perhaps Google maps but never firsthand observation of the real world — eschewed the phrase “Ponzi scheme” in favor of this justification for the mall’s existence:

The developer wanted the location for a lot of reasons. It is right off the freeway, in between Salt Lake and Provo, and next to Cabelas. The variety of businesses and prime location should attract male and female consumers, especially with the new mall bringing many stores to Utah for the first time.

This is perhaps a good time to remember the many failings and false promises of Cabelas and big boxes generally. (Also, a Scheels recently opened in one of the worst buildings in Utah, and it’s just up the freeway from Cabelas.)

Of course, I could be wrong. Perhaps in 100 years this mall will be a thriving epicenter of social life and economic vitality. But if that happens it would be truly unprecedented.

Orem has a dying mall. Apparently, Lehi wanted one too.

More likely, this project will provide an example of how not to grow a city. It’s a perfect example of big, cataclysmic investment that operates under a failed model of placemaking. It’s car centric in a world moving away from cars. It’s nonlocal and generic, both in what it offers and in its design. There is no precedent for its long term success — not just economically but as an asset to a thriving and vibrant city.

In other words, in the end it’s just more crap.

*Too often people who build crap aren’t called out for it. The KSL article about the Lehi mall is a great example, failing as it does to critically examine anything regarding malls generally or the project specifically. After my recent post on crap, I decided that if no one else is going to call these people out, I guess I should.



Filed under Development, driving, economics

7 responses to “CRAP ALERT!* New Mall Opens in Lehi

  1. Tosh

    WOW!! i think you NAILED this one. as both the provo and orem malls struggle with vacancies, its too bad some of this mall space couldn’t have been better used, or even, had them go to DOWNTOWN PROVO and fill up the vacancies we have there! that would’ve been better….but yes, this will be interesting to see what we have in the next decade up there…..

  2. Sarah

    Driving down the freeway I feel like I’m in southern California…I loathe the ugly sprawl

  3. Joel Wright

    Note that it is an Outlet Mall, and the prices will be lower on many things, and Utah County residents are notoriously cheap. Also, they have stores that don’t exist in other locations. And I don’t think this Lehi Mall is nearly as grand or ambitious as either the Orem or Provo malls originally were. Should be interesting to see how it works out. So long as Lehi didn’t have to massively subsidize it, let the market figure it out.

  4. Brandon

    It’s probably fair to say that malls are mostly cannabalistic, and will take sales away from other existing malls. But, there is little incentive for cities to work in a collaborative manner regarding mall planning. In fact, they are very incentivized to steal the tax revenue from a neighboring city, particularly if a development group is going to foot a large part of the bill. There should be a short-term “bump” in revenues, until the next latest/greatest mall steals the revenues away (as you described.)

    However, let’s talk about the Thanksgiving Point corridor. I see it as an up and coming development area, particularly due to the many technology/growing companies that are building there. (Adobe, Microsoft, AtTask, Nature’s Sunshine, etc.). The upcoming opening of the Frontrunner station will be a huge incentive for workers in this area to commute via rail rather than car. I’d love to know how TP is designing that business park and surrounding areas (including Cabela’s and this new mall) to take advantage of the Frontrunner station and make it convenient for people to use it.

    With a lot of open land still in the area, I wonder if more dense housing areas could be built here (or near other Frontrunner stations) to encourage people that work in TP to use Frontrunner. There is a dire shortage of restaurants in that area as well (Del Taco and JW’s are chains… plus cafes at TP and Cabela’s round out the options) giving opportunities to be more forward-thinking regarding future development that will come in the very near future.

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