Category Archives: business

The Twilight of the Indoor Mall

The Awl looks at the death of the mall

In the nineteen fifties, people with money began leaving the cities in unprecedented numbers. They were getting married, getting jobs, starting families, and buying houses—they were moving to the suburbs. A Time Magazine article in 1954 observed: “…since 1940, almost half of the 28 million national population increase has taken place in residential suburban areas, anywhere from ten to 40 miles away from traditional big-city shopping centers. Thus, to win the new customers’ dollars, merchants will have to follow the flight to the suburbs.”

They did, and the suburban shopping mall was born.

But the original idea for the mall was not just about retail. Victor Gruen, the father of the suburban shopping mall, envisioned something much bigger. He wanted outdoor areas, banks, post offices, and supermarkets; he wanted to give the suburbs a soul, one inspired by the public squares of European cities. But that never happened. Instead malls were faceless, sprawling. Gruen was so disappointed with what malls became, he gave a speech in 1978 in which he said, “I refuse to pay alimony for those bastard developments.” Malls turned out to be the very monoliths of soullessness that Gruen had tried to overcome.

It’s not just that there are better malls than Collin Creek in the Dallas area. It’s that there are so many malls; Dallas has more shopping centers per capita than any other city in the United States. And according to some estimates, fifty percent of indoor malls nationwide will die over the next two decades—partly because some shoppers are opting for newer, better malls, but also because, as a recent Guardian article put it, “the middle class that once supported” mid-market malls is dwindling. Or, put yet another way, by retail consultant Howard Davidowitz: “What’s going on is the customers don’t have the fucking money.” Which, of course, wasn’t always the case.

As these old malls die off, they’re being replaced more and more by upscale, outdoor shopping centers—with lofts, grocery stores, offices, public meeting areas, and day cares. At least four have popped up in Dallas within the past ten years, and they’re always packed. Sixty years after Gruen’s ideas were bastardized by short-sighted developers, they are finally seeing their day. Inklings, maybe, of the suburbs finding their soul.

To counter this, maybe there is some life for malls in winter cities.

You can hardly blame the Finns for wanting to shop in giant, self-contained malls. After all, winter tends to start early in Finland (like, November) and end late (say, in April). Temperatures in Helsinki, which is at the nation’s extreme south, with a relatively mild maritime climate, rarely get above freezing in the coldest months, and have been known to go as low as -30 degrees Fahrenheit. In late December, the sun in Helsinki doesn’t rise until well after 9 a.m., sets soon after 3 p.m., and stays low in the sky — only getting to about 6.6 degrees above the horizon on December 27, for instance (compare that to New York, where it reaches an altitude of 26 degrees on the same day).

So it’s no surprise that the idea of walkable urban centers are a hard sell in Finland. Still, some in the nation are calling for Finland to rethink its love affair with the shopping mall.

Yet recently I have been shocked at how quiet Confederation Mall is (a ghost town), Lawson Heights Mall, and Midtown Plaza is when I am in there.  Then you look at how busy at the same time other places are.  Maybe we are growing tired of malls as well. 

The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

This is an extremely depressing read in Rolling Stone about how incredibly corrupt the U.S. banks and are how comfortable the Obama administration has been in letting in continue

In September, at a speech at NYU, Holder defended the lack of prosecutions of top executives on the grounds that, in the corporate context, sometimes bad things just happen without actual people being responsible. “Responsibility remains so diffuse, and top executives so insulated,” Holder said, “that any misconduct could again be considered more a symptom of the institution’s culture than a result of the willful actions of any single individual.”

In other words, people don’t commit crimes, corporate culture commits crimes! It’s probably fortunate that Holder is quitting before he has time to apply the same logic to Mafia or terrorism cases.

Fleischmann, for her part, had begun to find the whole situation almost funny.

“I thought, ‘I swear, Eric Holder is gas-lighting me,’ ” she says.

Ask her where the crime was, and Fleischmann will point out exactly how her bosses at JPMorgan Chase committed criminal fraud: It’s right there in the documents; just hand her a highlighter and some Post-it notes – “We lawyers love flags” – and you will not find a more enthusiastic tour guide through a gazillion-page prospectus than Alayne Fleischmann.

She believes the proof is easily there for all the elements of the crime as defined by federal law – the bank made material misrepresentations, it made material omissions, and it did so willfully and with specific intent, consciously ignoring warnings from inside the firm and out.

She’d like to see something done about it, emphasizing that there still is time. The statute of limitations for wire fraud, for instance, has not run out, and she strongly believes there’s a case there, against the bank’s executives. She has no financial interest in any of this, no motive other than wanting the truth out. But more than anything, she wants it to be over.

In today’s America, someone like Fleischmann – an honest person caught for a little while in the wrong place at the wrong time – has to be willing to live through an epic ordeal just to get to the point of being able to open her mouth and tell a truth or two. And when she finally gets there, she still has to risk everything to take that last step. “The assumption they make is that I won’t blow up my life to do it,” Fleischmann says. “But they’re wrong about that.”

Good for her, and great for her that it’s finally out. But the big-picture ending still stings. She hopes otherwise, but the likely final verdict is a Pyrrhic victory.

Because after all this activity, all these court actions, all these penalties (both real and abortive), even after a fair amount of noise in the press, the target companies remain more ascendant than ever. The people who stole all those billions are still in place. And the bank is more untouchable than ever – former Debevoise & Plimpton hotshots Mary Jo White and Andrew Ceresny, who represented Chase for some of this case, have since been named to the two top jobs at the SEC. As for the bank itself, its stock price has gone up since the settlement and flirts weekly with five-year highs. They may lose the odd battle, but the markets clearly believe the banks won the war. Truth is one thing, and if the right people fight hard enough, you might get to hear it from time to time. But justice is different, and still far enough away.

 

Detroit with a Boardwalk

A great piece on Atlantic City in Politico

Four of its 12 casinos have closed in the last year, including the Revel, the newest and glitziest, despite a $260 million, taxpayer-funded gift courtesy of Gov. Chris Christie. A fifth, the Trump Taj Mahal, is on the brink. The gaming industry—proponents never call it gambling—has lost nearly 8,000 jobs since the beginning of the year and its revenue, which hit a high of $5.2 billion in 2006, is down nearly 50 percent. Add to that the city’s $65 million budget shortfall, pending layoffs of as many as 300 city workers and a tax base in free fall.

Sure, the still-sluggish U.S. economy is a factor. The loss of the East Coast gambling monopoly that Atlantic City enjoyed for nearly 20 years is another. Poor planning, lack of foresight and the failure to expand the city’s attractions beyond casinos are part of the mix. Even acts of God played a role: Though the city wasn’t devastated in 2012 by Hurricane Sandy the way other Jersey Shore towns were, tourism plunged in the immediate aftermath at a time when the city could least afford it.

But there is something else at play, something in the city’s DNA that is painfully obvious to anyone who’s lived or worked there.

Even during its halcyon days, Atlantic City was an enterprise built around blue smoke and mirrors. Think, Nucky Johnson, the inspiration for HBO’s Boardwalk Empire, and the wide-open rackets of gambling, booze and prostitution during Prohibition.

It was all about grabbing whatever you could, whenever you could from whomever you could. The city worked on a 12-week economy, Memorial Day to Labor Day. Get the tourists and vacationers into town. Sell them the beach and the Boardwalk and then send them home broke. The Miss America Pageant, held in Atlantic City for most of its years, was part of that con. It was the 1920s brainchild of a city huckster looking for a way to extend the summer season for another week. The city was born as a come-on, a fugazy.

Wonder why Atlantic City is failing? The better question, the one asked by people who know the town: Why did anyone think it would ever succeed?

How our shopping habits cause asthma in California children

Here is the story of how globalization is ruining the health of California children

The community that epitomizes the pollution warehouses can bring is Mira Loma.“Our quality of life is in the tubes,” said Gene Proctor, 73, who has lived in Mira Loma Village for 43 years. “I wish people shopping in Tucson, Arizona, in other places, I wish they could see the little kids around here, their respiratory problems.” His great-granddaughter has asthma, and his 3-year-old great-grandson, he said, “coughs like a smoker.”

Population 21,000, Mira Loma is so small and poor it doesn’t have a movie theater, a community center, or even a moderately upscale restaurant. What it does have are 90 warehouses and a whole lot of big rigs: Trucks rumble through 15,000 times every day. In just half an hour on a recent afternoon, 269 trucks passed by the big plate glass window in the front of the Farmer Boys truck stop on Etiwanda Avenue.

That is more than one every seven seconds.

Avol, the professor at the USC Keck School of Medicine, began visiting the town in the early 1990s as part of a study of air pollution and children’s health across Southern California. Back then, he said, researchers chose Mira Loma because it sits at the “end of the tailpipe” of the Los Angeles basin, meaning the prevailing winds off the Pacific Ocean blow L.A.’s infamous smog east until much of it arrives in Mira Loma. So it was rural yet had a lot of ozone and smog. Other places in the study, such as Santa Barbara and Long Beach, were picked because they were thought to boast clean air or because they were in industrial areas.

When the study began, Mira Loma residents complained to researchers about the smell of dairy cows, herds of which clustered on vast pastures and cow yards. But in 1987, Riverside county supervisors revamped the general plan for Mira Loma, clearing the way for massive warehouse development.
“In the course of a few years, the dairies disappeared,” and what had been “open pasture became streets and warehouses, lined with trucks,” Avol said. “Mira Loma turned out to be a very interesting place to study.”

The trucks made the already bad air worse, bringing in diesel particulates, very small particles that can enter the lungs and travel to tissues throughout the body. They are associated with asthma, heart disease, neurological problems, and cancer.

In Mira Loma, children were found to be growing up with stunted lungs compared with children living in places with better air. Their lungs were growing at a rate that was 1 to 1.5% slower, Avol said, so that “after their teen years, they were about 10 to 12% lower in lung function than children who had grown up in cleaner places.”

He added: “We have no information at this point that supports the idea that they ever catch up.”

Studies from other Inland Empire communities are also dire. In a neighborhood near the BNSF rail yard in the city of San Bernardino, Loma Linda University researchers found that adults have more respiratory problems, and children alarmingly high rates of asthma, even when compared with other polluted communities.