Elderberry's employee Ashley Schlafman mixes a smoothie at First & Main.
Frustration is building faster than business in the First & Main development, as numerous planned tenants reconsider opening up shop.
Fairmount Properties, developer of the shopping center, currently faces a breach of contract lawsuit from tenant Blue Ridge Mountain Sports, as well as claims by Morgan Thalhimer Inc. seeking payment for recruiting tenants.
Blue Ridge Mountain Sports claims Fairmount owes them $262,000 in reimbursements for store construction. Of $312,000 due, Blue Ridge Mountain Sports received only $50,000.
The case also cites a clause in the contract that would add interest for late reimbursement.
Morgan Thalhimer helped recruit tenants such as Elderberry's, SportsClips and Maggie Moo's. The company said in court documents they are owed $50,000.
Diane Elder, an owner of the smoothie shop Elderberry's, said the development has not produced the same business opportunities originally promised.
"A lot of what's supposed to go in there hasn't materialized," Elder said, citing "all the back and forth on the movie theatre, which really was the number one draw for us because of the foot traffic."
Frank's Theaters originally planned to put a cinema in the space adjacent to Books-a-Million. A company representative said they are no longer involved.
Restaurant chains Sonic and Arby's have also pulled out of planned locations in the development.
Blacksburg Partnership President Diane Akers said the weak economy likely led to national chains pulling out of the development.
However, she also said there is hope for renewed interest in the development as the economy rebounds.
"Hopefully, as time goes on and the economy improves, some of those things that have gone away will want to come back," Akers said. "Maybe there will be a new person or a new company that will bring in a movie theater, but I don't think you can really predict that."
Additionally, local businesses such as Classic Image Salon and Day Spa, as well as Beamer's Steakhouse, have delayed moving to the development.
Elderberry's will first attempt to make a new agreement with Fairmount, but could resort to a lawsuit if those attempts fail.
"We currently are negotiating with them right now, renegotiating our situation and hope that it doesn't end up in litigation," Elder said. "Obviously, we would exploit that option if we were forced to, but we're hopeful we can continue the negotiations we're in right now."
Elder said shops such as Elderberry's and Maggie Moo's had viewed the planned movie theater as a major part of business.
"It's really hard to gauge your hours, because you stay open, and then there's not a theater, so there's not the foot traffic," Elder said.
Akers said the development is experiencing the same troubles as the national economy.
"First & Main is similar to many retail developments across the country in this economy right now," Akers said. "Developers are not building right now. There's not the demand, and then retailers are leery of opening stores. So I think what is happening here is pretty typical of what is happening across the country."
Elder said some obstacles are to be expected when moving into a shopping center, and hopes to find success at First and Main.
"We're just trying to move forward in a positive way," Elder said. "Basically, when you go into any center there's always all kinds of issues."
A real estate firm hired by Fairmount to find tenants for the development pursued Elder's business.
"They begged us to come in there," Elder said. "They solicited me for two years, and I just think that in the end they'll do right."
Akers said the Blacksburg Partnership, which helps recruit businesses for the Blacksburg area, still has interested businesses, but most are hesitant to open up shop in the current economic conditions.
"We continue to talk to businesses that are interested in being in Blacksburg," Akers said. "It's slow, because whether it's a national retailer or a local business, people are just worried about opening businesses right now."
Fairmount did not return calls from the Collegiate Times.
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The worst thing folks can do right now is panic. There isn't a single shopping center or central business district in the nation (and frankly, in the world) right now that isn't facing exactly the same set of concerns. So this should not be lumped into the negative swirl that has been created periodically around this project. The good news, the center is open, and I for one visit once or twice a week. The restaurants are great, the selections are great as well. What we need to do as citizens of our community is visit and use these businesses as often as one can within their personal budget and time. The worst thing we can do is turn our backs and wait to see what happens. What Fairmount needs to do is Aggressively recruit a movie theatre tenant...then reapproach other businesses. Activity is ticking upward in many parts of the country, so there's some good news there. Just keep it positive or you pre-destin the outcome.
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G, what we need to do is behave however we wish. I will never visit a business because I feel obligated to help it stay open.
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Also, for me, panic is a welcome surprise. Remember how our average national credit card debt is approaching 5 figures? Remember how people are losing their shirts to bad housing investments? You call it panic when people close their wallets, I call it a step toward financial prudence.
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