RETAIL: Plans to tear down part of Westmount Shopping Centre have store owners scrambling
By NORMAN DE BONO, The London Free Press
The mall owner plans to demolish the section of the mall where Shaw's store is located and Shaw says she can't afford the cost of renovating a new space in the mall, or the higher rent.
A move by Westmount Shopping Centre to demolish part of its building is pushing some retailers out of the south end mall.
The mall has applied to tear down up to 80,000 square feet to make way for more parking, and retailers being pushed out of the area to be torn down have been hit by increases in rents to relocate, as well as high renovation costs on their new space, and little time to move, they said Friday.
"It's been nerve wracking," said Nancy Shaw, who is closing the Merle Norman store, the mall's oldest tenant, there for 37 years. "Your whole life is turned upside down."
About five years ago, Shaw moved from the top floor to the main floor, paying $70,000 to renovate a new store. The mall has told her she must now pay $130,000 to renovate a new space, and pay an increase of $2,500 on her rent of $5,000 a month -- a 50% increase. Shaw can't afford it and is opting for retirement.
She also has had little communication from the mall management or its owner, Bentall, adding the mall is pushing them out quickly.
"The information has been very limited and we got termination notices saying we had to be out by the end of the month," she added.
Bentall could not be reached for comment, but realtor Tim Schnurr believes the moves will make for a more viable shopping centre.
"The focus is to make it a more vibrant community centre. We need to reposition the ground floor to focus it differently," he said.
Bentall has applied to the city for approval for the changes and city staff does not anticipate any hurdles to the demolition, said Bruce Henry, the city's manager of site plan approval.
"It is an effort by the owner to revitalize it, make it more attractive and I know they are busy marketing it," said Henry.
The mall will demolish the former movie theatres, as they are now closed, and much of the area below it, all the way to the Merle Norman store. Tenants in the area to be demolished have to be out by the end of March. The mall wants the demolition to happen this summer with changes completed by year end.
The Metro grocery store and two clothing retailers opposite it, Sirens and Urban Planet, will be a stand-alone building.
The mall also is looking to create building sites facing Wonderland and Viscount roads where restaurants or other stores could be located.
Like many others, Brenda Trudel, who owns Riverbed Aqua Massage, has been driven out by the rent hike. She will open her store in Elgin Mall, in St. Thomas, Monday after she was told she must pay a 25% increase and sign a five-year lease at Westmount.
"I could go on and on about what has happened here and how we have been treated," said Trudel. "I am starting all over again, after four years here."
The mall's second floor is becoming office space, with London Health Sciences Centre opening a renal dialysis centre, a health clinic and a physiotherapy centre.
Outside his salon, Stylish Plus, Ron Bonasia wants the uncertainty to end.
"It is good and bad. At the end, it may be really good, but we are concerned about losing business . . . It could have been handled gracefully," said the tenant of 16 years, who will move to a new location in the mall.
"Now, it is like a bad dream, I just want to wake up and it will all be over."