A CLOSER LOOK -- Big support key for Triangle Square

Lolita Harper

COSTA MESA -- Times are rough, once again, at Triangle Square.

But a look back at the center’s history shows it is no stranger to

embattlement, and support from big name anchors offer encouragement for

the floundering property.

In the past 10 years, Triangle Square has experienced its share of

problems, consistently suffering from a failure to retain tenants and

complaints of poor management. Even with a change in management

companies, the center is still having problems filling empty store

fronts. Triangle Square has six vacancies, with Whole Foods -- soon to be

No. 7 -- scheduled to leave in April.

While the center has seen a slue of turnover, the big names that

anchor the shopping center said they have no intention of leaving,

confirming a solid base of support for the troubled square.

Claudine Leaf, a national spokeswoman for Niketown, said the Orange

County store was exceeding expectations despite the center’s troubles.

Leaf said there is no indication that Niketown would leave, or even want

to leave the troubled center.

Of course, the large athletic retailer has felt the effects of the

recent economic downturn, she said, but sales at the Orange County store

are consistent with Niketowns across the board.

“Before Sept. 11 we were doing very well in Orange County -- even

exceeding budget,� Leaf said.

Because of its Southern California location -- where people are known

to be more active and involved in physical fitness -- Leaf expects the

Costa Mesa store to make a strong comeback, even ahead of other stores.

Tom Estes, the property manager for Triangle Square, said the property

was designed as a destination center, meaning shoppers come to the site

for a specific reason. It is not a mall and is not intended to attract

people who want to walk around and shop.

Niketowns success could be attributed to the fact that the store is

itself a retail destination. Most shoppers go to Niketown for a specific

reason.

However, it isn’t just big-name stores that are doing well.

Steele Platt, owner of the Yard House, said his restaurant has been

successful at the center for a similar reason: because it is a

destination restaurant and does not depend on foot traffic, or the lack

thereof, at the square.

“We don’t rely on anything else in this center to be successful,�

Platt said.

Platt said he is happy with business at the center -- where he has a

good location with good visibility -- and has no intentions of leaving.

Officials for clothing giant GAP also said they have no plans to close

the Triangle Square store. They would not, however, comment on sales,

foot traffic or their general success at the center.

Both GAP and Niketown were original tenants and both were instrumental

in gaining support for the historically tumultuous project.

Triangle Square was originally designed to create a formal downtown

area for the city. The shopping center, along with the Pacific Savings

building -- now called 1901 Newport -- and the Costa Mesa Courtyard, were

to be the cornerstones of a central metropolis.

The downtown area was designated for redevelopment in 1973, as city

officials claimed Newport Boulevard was blighted. The $6.4-million

Triangle Square project did not come into play for 16 years when it was

approved May 24, 1989.

The project quickly encountered many hurdles, as issues of eminent

domain and condemnation came up during the face lift process.

Ultimately, condemnation was avoided as small businesses on the

4.5-acre site settled with the city, accepting relocation funds.

Former mayor Peter Buffa, now a Pilot columnist, was a member of the

council when Triangle Square was approved. He said dealing with possible

condemnation was the most controversial and traumatic part of the

project.

“It is typically the most difficult thing a city council does because

you are taking someone’s property from them. Those were some of the worst

meetings I have been through,� Buffa said.

Funds for allocating the site, used to buy the land and relocate the

current tenants, were borrowed from the developers.

City Manager Allan Roeder said the risk to build the unusual center

lay with developers, not taxpayers. Costa Mesa officials required the

developer to put the money for the project up front and then agreed to

pay it back over time. Roeder said the city prefers to negotiate that

way, rather than have the money put up by taxpayers, hoping that it get

repaid.

The city is still repaying its 15-year loan to Triangle Square

developers. The city pays users a portion of the property taxes it

receives from the center to pay back the loan. Property tax increased

substantially with the center’s development, so the city gives a little

back as repayment, he said.

“We’re just refunding a hair of the property tax that they pay

annually,� Roeder said.

Despite all the ups and downs -- mostly downs -- Triangle Square has

gone through in its almost 13 years, former city officials stand by their

decision to approve the project.

“The center was a tremendous make-over for downtown Costa Mesa,� Buffa

said.

Buffa added part of the recent problems are a product of recession and

management issues. The right mix of tenants must be found and then

marketed to the public to make the center successful.

Donn Hall, who was on the council when the center opened, agreed with

Buffa, saying changes need to start with the center’s management.

“It’s just a deduction but it seemed to be quite successful when it

was sold and now it is in the dumps,� Hall said. “Regardless of the state

it is in now, I still stand behind my decision that it was a solid

project.�

Triangle Square officials said they are working on major changes for

the struggling center but will not release details.

Mayor Linda Dixon said whatever they do, she hopes the changes will

create an environment that will attract people to downtown Costa Mesa.

Buffa said he is confident in the center’s ability to overcome

obstacles.

“It prospered in the past and it will in the future,� Buffa said.

* Lolita Harper covers Costa Mesa. She may be reached at (949)

574-4275 or by e-mail at o7 [email protected] .