…or is it just the whirligig of Time?
Bob Congel gets spanked by Daddy Citi.
“That amount has largely gone to pay expenses for Destiny personnel, Web site creation, high-priced marketing consultants and marketing gimmicks such as painting the existing Carousel mall green, with only approximately $5.4 million spent on actual (construction) trade costs that the borrower claims are associated with store build-out, and none on tenant allowances,” the bank said.
About a year ago, Destiny repainted almost the entire interior of Carousel Center — most of it in shades of green — to emphasize the green technologies it says will be incorporated into the expansion. Citigroup also said that despite years of effort and the claimed expenditure of millions of dollars, Destiny has been unable to produce even a single executed lease for the mall expansion…
“Borrower has admitted to Citigroup that traditional approaches to leasing mall space have been a failure, and as an alternative, borrower has pursued a series of novel and previously untested leasing concepts to fill the mall,” the bank said. Those concepts include an approach the developer has named “Arendi,” in which the mall provides market research to tenants by using technology to track consumer behavior in the stores, in return for below-market rents and an increased share of profits being paid to the developer, Citigroup said.
Not sure Bob wanted that Big Brother strategy to get out just yet. Oh well.
But he promised world-class shoppertainment… and he has delivered. Pass the popcorn — I am feeling mighty shoppertained right now!
Updated: Here’s more.