Thursday, October 4, 2007

In Columbia Heights, Room for the Little Guys

By Alejandro Lazo Washington Post Staff Writer Monday, October 1, 2007; D01

The shells for what will be some of the biggest big-box retailers Columbia Heights has ever known are rising along 14th and Irving streets and Park Road NW. They include Target, Best Buy, and Bed Bath & Beyond.

Yet below these retail giants, space has been reserved for the little guys.

 

A Peruvian restaurant has signed a lease, as has a local African American franchiser of the Quizno’s sandwich chain. A Vietnamese grocer is negotiating to bring a Pho restaurant to the development. A locally owned spa may also come.

The $149.5 million DC USA project is being developed by Grid Properties of New York. President Drew Greenwald said the firm will reserve 15,000 square feet, or about 11 percent, of ground-floor retail space for local and minority-owned businesses, under an agreement with the District to buy and develop the land. He will reduce rents by 30 percent to encourage smaller tenants.

“With all the projects, it is going to be a nice mix,” Greenwald said. “It kind of has a little bit of everything.”

Throughout the District, developers are carving out space for locally owned or small businesses. While small businesses tend to be riskier bets than their better-financed corporate counterparts are, mixing local and national retailers is a goal of city officials when selling or leasing public land.

Mayor Adrian M. Fenty has made these set-asides for small and local businesses a priority in many negotiations with developers who seek to build on public land.

At the site of the former convention center on New York Avenue and Ninth Street NW, the city has struck one of the biggest of such agreements. The development team of Hines and Archstone-Smith has agreed to set aside 82,500 square feet, or 30 percent, of retail space for local or “unique shops.” It defines unique shops as operating fewer than six locations nationally. The development team will adjust rents accordingly to meet the mandate, said Howard J. Riker, a vice president in Hines’s Washington office.

“Local doesn’t necessarily mean small or local doesn’t mean new; it doesn’t necessarily mean ‘put at a disadvantage,’ ” Riker said. “The way that we will approach the leasing is that we want to make sure that all the retail tenants will succeed.”

Yet questions remain as to whether small and local businesses can compete in an environment of national brands.

“We may want to support the little guy in the neighborhood, but if his coffee doesn’t taste as good as Starbucks, if his clothes fall apart when you wear them or his furniture is out of fashion, are you going to go his store? You’re not,” said John A. Asadoorian, founder of Asadoorian Retail Solutions, a District brokerage firm.

Asadoorian added, “They should be viable businesses, and if they are viable, the property owners will want to put them in their projects anyway.”

Others question whether driving up the cost of these projects is worthwhile. In the short run, a few small businesses benefit from a program, but the cost is distributed across the entire tax base, said David H. Downs, a professor of finance and the director of the Kornblau Institute at Virginia Commonwealth University.

“If the taxpayers aren’t properly monitoring what is going on with these programs, they can be inefficient,” Downs said.

Mixes of national and small retailers already exist in the District. When Horning Brothers sought to renovate the Tivoli Theater, the original 1998 request called for the inclusion of at least one local business, said David Roodberg, chief executive at Horning Brothers. The project is also in Columbia Heights.

The project, anchored by a Giant grocer, includes several minority-owned and local businesses, including the Rumberos restaurant, Mayorga Coffee cafe and the Destiny De’ve hair salon and spa. Ruby Tuesday and Wachovia are the other national chains that are part of the mix.

“There is some risk,” Roodberg said. “But you have to evaluate the individual retailers and their experience.”

In the case of the DC USA development, the Development Corporation of Columbia Heights has played the role of recruiter for neighborhood businesses, overseeing an application and selection process and making recommendations to Grid. Robert Moore, chief executive of the group, said start-up costs for small businesses can be one of the biggest hurdles, particularly for businesses that are not franchises.

“When you walk down the street, the smells that you smell are the smells of the neighborhood: Ethiopian food, Peruvian kitchen, so I really think it’s going to give cachet to the place, and you’ll know you’re in someplace special,” Moore said.

Alejandro Lazo covers commercial real estate. His e-mail address islazoa@washpost.com.

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Friday, September 21, 2007

Orange County to get new area code

Residents soon will be dialing 657. The Public Utilities Commission voted to create an overlay in the 714.

By David Haldane and David Reyes, Los Angeles Times Staff Writers
September 21, 2007
State regulators decided Thursday to create an area code overlay in the 714 section of Orange County, establishing the second such blended telephone zone in California.

The California Public Utilities Commission’s 5-0 vote means that, starting late next summer, callers in the current 714 area will need to dial 10 or 11 digits to complete a local call. Existing telephone customers adding new numbers might wind up with phones in different area codes.

Doubling up

The new code — 657 — will cover the Anaheim resort district as well as other communities in northern and central Orange County, including Fullerton, Orange, Santa Ana and Yorba Linda, along with the coastal community of Huntington Beach.

PUC officials acknowledged that requiring cellphone customers making local calls to dial 10 digits and land-line customers to dial 11 digits — a 1 followed by the area code and individual phone number — can be inconvenient.

What’s more, it will apply to everyone in the 714. So, a phone customer who keeps a 714 number and who calls someone else with a 714 number also will need to dial 10 or 11 digits.

Still, with 714 numbers running out, commissioners said it was the best solution.

Although dialing that many digits “takes some getting used to by consumers, we believe this action is necessary,” Commissioner Rachelle Chong said in a news release.

She noted that phone customers in the 714 area will have to reprogram equipment with stored phone numbers, including fax machines and burglar alarm systems, to accommodate the dialing of the new, longer local numbers.

PUC officials have pointed out, however, that overlays can be less of a nuisance than splitting an area into two codes.

That would force customers in the new area to change to an entirely new telephone number, requiring them to notify their friends and clients, and print new business cards and office stationery.

Still, John Nicoletti, a spokesman for Anaheim, expressed the concern that the Orange County overlay will “create lots of visitor and tourist confusion.”

He noted that 45 million people a year visit the city’s resort area, including many foreign tourists drawn to such attractions as Disneyland.

He said that if, for instance, a new restaurant opens by Disneyland with a 657 area code, instead of the existing 714, “people from other areas won’t realize that they are right next to each other.”

Nicoletti also pointed to Anaheim Garden Walk, an outdoor retail and entertainment center under construction in the resort area.

Businesses moving in will want to promote their proximity to established tourist destinations but, Nicoletti said, having varying area codes “will make it difficult to have a consistent marketing message.”

“There is the potential for confusion,” he said. “What every resident is facing — the consternation that there could be a different [area code] next door — will be faced by businesses that have to market themselves” to visitors.

But officials in Buena Park, which has its own entertainment corridor along Beach Boulevard that includes such well-known attractions as Knott’s Berry Farm and Medieval Times, appeared less worried.

Though there is likely to be some confusion early on, said Aaron France, a city spokesman, it will all work out over time.

“I think change is tough for anybody,” he said, “but eventually people will kind of conform and they’ll deal with it.”

Likewise, a spokeswoman for South Coast Plaza in Costa Mesa said she didn’t anticipate major problems.

“We have a main switchboard that can transfer to any store, and we have an 800 number,” she said.

Under the timetable set by the PUC, callers can start making 10- or 11-digit calls within the current 714 area in April and will be required to use 10 digits in August.

The first new phone numbers with the 657 area code will be issued in September.

For decades, the 714 area code — which has more than 7.3 million phone numbers — has been synonymous with Orange County. But the rapid spread of cellphones, computers and fax machines has caused the 714 to “just run out” of numbers, said Susan Carothers, a PUC spokeswoman.

The 657 area code will be the county’s fourth. Customers in the county’s existing 562 and 949 areas will not be affected by the change, officials said.

Thursday’s decision follows a similar vote by the PUC two years ago to place the state’s first area code overlay into the 310 area, serving the South Bay and Westside. Officials started assigning the new 424 area code last year.

The PUC is considering an overlay for the San Fernando Valley’s 818 area and for the 760 area covering parts of Riverside and San Diego counties.

david.haldane@latimes.com

david.reyes@latimes.com

Times staff writer Stuart Silverstein contributed to this report.

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Wednesday, September 12, 2007

Mall could revive once-vibrant Mid-City area

A $70-million mall is another indication that L.A.’s Pico-San Vicente area, once mired in economic decay, is resurgent.
By Ari B. Bloomekatz, Los Angeles Times Staff Writer September 12, 2007
Back in the days when Los Angeles had streetcars, the crossing of Pico and San Vicente boulevards in Mid-City was a hub of activity.

The streets were lined with shops, restaurants and movie theaters. A hilltop Sears department store drew customers from far and wide, some taking the Pico line of the Los Angeles Railway Co. trolley car system.

Then came the Watts riots in 1965, followed by years of economic decay and the 1992 riots. Crime rose, storefronts shuttered and the landmark Sears closed its doors.

But Mid-City is now in the midst of a revival, part of a wave of gentrification that has swept over many of L.A.’s once-neglected neighborhoods. The boarded-up Sears, for years a symbol of decay, is being replaced by a 500,000-square-foot mall, anchored by a Lowe’s home improvement store.


The area, a mix of ethnic groups and neighborhoods that range from mansion-lined streets to rows of low-rent apartments, is benefiting from economic forces on its borders. People who can no longer afford the high prices of neighboring communities have moved in. It helps that Mid-City, as its name implies, is not far from downtown, Hollywood and the Westside. And development is following.

“This is one of the great untapped neighborhoods,” said Samuel Garrison, director of public policy at the Los Angeles Area Chamber of Commerce.

The gentrification has been embraced by some — but not all — Mid-City residents.

Barbara Julian, who has lived in a house one block south of Washington Boulevard on Dunsmuir Avenue for more than four decades, said she has to drive miles for shopping — to Beverly Center or Culver City.

“The area has been a blighted area for quite a while,” she said.

Julian, 71, said she hoped the new mall would bring a new sense of vitality to the area.

But Carlos E. Rodriguez, owner of El Salvadoran pupuseria Con Sabor that opened nearby 10 years ago, said new brand-name stores, such as Panda Express, will hurt small businesses like his. Developers “never come in with small, local businesses; they come in with brand franchises,” Rodriguez said.

Experts say Mid-City’s history and demographic shifts are emblematic of many low- and middle-income neighborhoods throughout Los Angeles. The rise in home values in neighborhoods such as Hancock Park, the Fairfax district and Miracle Mile have young professionals and first-time homeowners giving Mid-City a new look.

A single-family home in the area sells for an average of $559,000 — nearly four times more than in 2000, but about $300,000 less than in Olympic Park, according to John Karevoll of the real estate research firm DataQuick Information Systems.

Despite the influx of new homeowners, Mid-City remains a largely working-class area.

Nearly a quarter of its residents were living in poverty, according to the 2000 Census, a bit more than twice the nationwide rate of 12.4%. And according to the same census, slightly more than half of Mid-City residents 16 and older had jobs — more than 5% less than the rest of Los Angeles and about 9% less than the national average.

The developers of Midtown Crossing, set on 10 acres, are not looking to attract exclusively upscale clientele. CIM Group Inc., the company funding the project, has a history of targeting emerging areas that the developers say don’t have enough retail establishments.

The mission “is to be a catalyst for change in communities that have been underserved,” said Philip Friedl, a CIM vice president. “This area, this community, this project, and this site really presented the opportunity to do that.”

Detailed drawings of Midtown Crossing show a style similar to the much larger and more upscale Grove, a popular outdoor shopping mall a few miles away on 3rd Street and Fairfax Avenue. Midtown Crossing would have tree-lined sidewalks, brand-name but not super high-end retailers surrounding a parking area. The developers won’t confirm tenants because negotiations are not final, but stores that might open include Best Buy.

In the 1920s and ’30s, Mid-City was a suburb of downtown Los Angeles — “very dynamic, it was changing all the time,” said Matthew Roth, a historian with the Automobile Club of Southern California. Some developers at the time tried new architectural plans in the neighborhood, including an innovative rooftop parking lot at the Sears store, Roth said.

It helped that at Pico and Rimpau boulevards, a key Los Angeles Railway line had its western terminus, with a depot next to the Sears that is now a transit center for the Metropolitan Transportation Authority and the Big Blue Bus line.

Until the August 1965 riots, Mid-City and the neighboring Crenshaw district thrived, said Christopher West, history curator at the California African American Museum in Los Angeles. But Mid-City struggled for the last 40 years, taking a second hard hit when riots again rocked the city in 1992.

After the dust settled from the riots, City Councilman Herb Wesson said, retailers were wary of moving into the area. Wesson said he has set up booths at development and retail conventions around Southern California, asking retailers to come to an area he described as “barren” and “starved.”

“We’ve got enough liquor stores and auto body shops for one neighborhood,” Wesson said about Mid-City, which is in his district.

Midtown Crossing is the first major development to bring in masses of new stores to the area. But residents said they began noticing changes in 2000.

More retail has crept in as community activists and local politicians pursued business-friendly community planning.

“I’ve seen the improvements, the different businesses that have moved in, the interest from big developers looking at properties,” said Steven Vasquez, president of the Mid-City Neighborhood Council. “The street maintenance has increased. We’re getting more medians, better street lighting. It’s going to help more businesses come in, and of course, you have the people moving in that have more income.”

Two years ago, when Franco Gambino opened Gambino’s Grill and Pizza on Venice Boulevard near San Vicente, he was struggling to get customers. Now, he said, he sees customers coming from Hancock Park for “The Killer,” a monster pizza.

Gambino said he hopes the development will bring more foot traffic. A bank and a few shops have opened at the new mall, just east of La Brea Avenue. To come over the next 16 months are the home improvement store, scores of other retailers and a three-story parking garage, all at a cost of $60 million to $70 million, said architect Brad Williams, the project’s director at Studio One Eleven in Long Beach.

Darnell Hunt, director of the Ralph J. Bunche Center for African American Studies at UCLA, called the development “momentous” because retailers have been wary of building in areas touched by the 1992 riots.

But Hunt pointed to an Inglewood neighborhood where residents argued bitterly over plans by Wal-Mart to open a mega store and said that developers are often not in tune with a particular community’s needs, such as prevailing living wages and opportunities for local entrepreneurs.

Julian, the longtime Mid-City resident, said she believes the community would love the kind of shopping and pedestrian interaction her neighborhood enjoyed during its heyday.

“I hope the mall will bring in business and actually make it look much better.”

ari.bloomekatz@latimes.com

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Tuesday, August 28, 2007

At China’s huge malls, high prices and few shoppers

Empty malls are one indicator of the country’s overheating economy.
| Correspondent of The Christian Science Monitor
from the August 28, 2007 edition - http://www.csmonitor.com/2007/0828/p01s01-woap.html

The only thing missing, on a sizzling summer afternoon, was customers. Sales staff idled at display racks as a trickle of young visitors looped around the frigid mall. Most were content to window-shop, dreaming of the day when they could afford to drop $100 on a tassled tote bag. “These prices are too expensive. People can’t afford it,” says Xu Tao, a car repairman who was visiting with his girlfriend.

 

As investors continue to pour money into malls, analysts say the signs of a real estate bubble are growing, as are predictions that some retailers may be heading for trouble. Empty malls are just one indicator of an overheating economy – growing at its fastest clip in over a decade – that is proving hard to cool.

To curb rising inflation, led by food prices, China’s central bank raised interest rates last week for the fourth time this year. Real estate is also in the spotlight: Property companies were ordered in June not to borrow offshore. But the race to build goes on.

“The problems of overheating are already apparent,” says Wang Yao, director of the information department for the China General Chamber of Commerce, an industry umbrella group. “The commercial real estate industry is facing problems. After some buildings are finished, nobody wants to rent space.”

Too many malls in China

Since 2002, China has built hundreds of malls in towns and cities, each trying to get a slice of a retail pie worth $800 billion last year. Captivated by the promise of a vast consumer class itching to spend, foreign brands have jostled for space at the table only to find a scarcity of customers. As a result, retail vacancy rates in Beijing are currently 8 percent and rising as more malls enter a crowded market. [Editor's note: The original version misidentified the occupancy rate of Beijing's retail stores.]

Mr. Xu, who pulls in $266 a month – below Beijing’s $400 average – is typical. He socks away one-fourth of his pay packet, as does Chen Ping, his girlfriend, who makes a similar wage as a store assistant. Asked if he isn’t tempted to save less and spend more, he shakes his head.

“If we enjoy life now, what about the future? We need to think of our future,” he says.

The rising cost of living is one reason why many here are reluctant to splurge in fancy malls. Unlike US consumers, many of whom use credit liberally, Chinese workers opt to save, knowing that a feeble welfare system is unlikely to provide for them.

As a result, consumption accounts for only 37 percent of China’s economic output, about half the rate in the US.

Such stinginess bodes poorly for Beijing’s mall developers.

When it opened in 2004, Golden Resources Shopping Mall was the world’s largest shopping center, with 550,000 square meters of retail space (a new mall in southern China has since taken this title). But it has struggled to generate enough customer traffic and sales to justify an investment of nearly $500 million and is fast being overshadowed by newer, glitzier retailers. An additional 2 million square meters of new retail space will be added this year, according to Mall China Information Center, an industry association.

“The question is not whether people can afford [luxury] products, but how many big malls that a city like Beijing should have. That’s the issue. If there’s too many malls, some will fail,” says Mr. Wang.

It’s a common problem that points up the inexperience of mall operators and the readiness of China’s state-run banks to lend to prestige projects with political backing, say analysts and industry sources.

“I think that the issue is not that we’ve misjudged consumption. It’s just been too easy to borrow money and build these things,” says Michael Pettis, a finance professor at Tsinghua University in Beijing.

Just as US home loan woes have left a nasty aftertaste, Mr. Pettis warns that a real estate downturn in China would saddle banks with dud loans to empty malls. In recent years, policymakers have cautioned banks against excessive lending to malls, to little avail.

Exports still rule China’s roost

At the same time, authorities have long sought to lessen China’s dependence on exports by stimulating domestic spending. But private consumption still lags far behind investment in real estate and factories, fueled by a hoard of savings in state-run banks.

New bank loans reached $364 billion in the first seven months of this year, exceeding last year’s total lending, state media reported. Property remains a favorite bet: housing in Beijing is fetching 10 percent more than last year.

However, industry sources say that many first-time mall operators aren’t borrowing money but reinvesting profits from their other businesses. That’s one reason why they don’t always make the smartest decisions, says Victor Guo, president of the Mall China Information Center.

“The developers aren’t so professional in China; they don’t know how to develop and market their product. The industry is at an early stage,” he says.

Golden Resources has adjusted its mix of stores to increase sales turnover, says Fu Yuehong, general manager of New Yansha Group, which operates part of the mall. Weekend crowds swell to 100,000, she says, though it’s much quieter on weekdays.

One blind spot in China’s real estate sector is the focus on well-heeled elites who can afford to pay top dollar for imported luxuries, such as the $6,000 fur-trimmed leather jacket on sale last week at Shin Kong Place. Developers are neglecting the vast ranks of middle-income families in Beijing and provincial cities that aspire to a better lifestyle.

The reason may be less economics than vanity. “Every developer wants Louis Vuitton and Prada in their retail space. They don’t want a mid-market project,” says Anna Kalifa, head of research in Beijing for Jones Lang LaSalle, a real estate company.

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Sunday, August 26, 2007

Cork Debate Pits Wine vs. Environment

By SARAH SKIDMORE, Associated Press Writer
Sunday, August 26, 2007 (08-26) 11:45 PDT Portland, Ore. (AP) –

It’s the main event in the battle over how to close a bottle of wine: Cork vs. screw cap. To some, it’s a matter of style. To others, it’s an issue of quality. And now, it’s a question of what is best for the environment.

Cork was the standard closure for ages. But winemakers began moving to alternatives in the past decade because of problems with cork that were ruining wines. Screw caps became a popular option and are now seen topping many fine wines, such as some bottles from Napa’s PlumpJack winery that sell for $100 or more.

But some winemakers and environmental groups are urging wineries to return to basics — saying cork is the best choice for the environment.

“This is one of those things where something we have done for years that is traditional is actually the sustainable choice,” said Jim Bernau, owner and founder of Willamette Valley Vineyards in Turner. “How often can you say that for anything we’ve done in the past 50 to 100 years?”

Cork is a renewable material — made from the fiber stripped from cork trees that can then regrow. The largest and most profitable use of this harvested cork worldwide is for wine stoppers.

Several environmental groups say the growing popularity of alternatives like screw caps are threatening Mediterranean cork forests, where cork is mainly grown. Cork oak covers about 6.7 million acres in the region and provides income for more than 100,000 people, according to the World Wildlife Fund.

Cork forests are predominantly privately owned, which puts them at greater risk for neglect or sale for development if the popularity of cork lessens.

Cork producers say they have seen the overall production of wine stoppers drop in the past decade. And last year, The World Wildlife Fund estimated that if winemakers continue their move away from cork, three-quarters of the western Mediterranean’s cork oak forests could be lost within the decade, threatening jobs and ecosystems.

The Rainforest Alliance recently jumped into the fray, offering a certification system for wineries to verify that their cork comes from cork forests that meet Forest Steward Council’s social, economic and environmental standards — lending assurance to winemakers and consumers that the cork was properly handled.

The issue is complicated for winemakers, who are often swayed by issues of sustainability but have been burned by cork’s quality issues in the past.

The primary problem that drove vintners away from cork was “tainting” or “corking.” Cork taint is actually a chemical compound called TCA, which results from an interaction of mold, chlorine and other organic compounds that produce a moldy or musty smell and flavor that makes wine undrinkable.

Estimates vary, but some wineries say as much as 15 percent of their wine has been tainted in the past. Screw caps, by comparison, don’t have issues with tainting and are a fraction of the cost. However, they are usually made from nonrenewable material — typically aluminum with a plastic insert. That also makes them difficult to recycle.

The debate is particularly hot in Oregon, where sustainability is a badge of honor among winemakers. Several wineries boast the use of solar panels, biodiesel-fueled tractors and organic farming practices. There are salmon-safe wines, which ensure the winemakers’ practices don’t harm water that feeds into salmon waterways. And 16 Oregon wineries recently pledged to go carbon-neutral in the next 18 months.

“I think all of us are paying a lot more attention to (the environment),” said Bernau, whose winery got the first Rainforest Alliance sustainable cork certification this year. “When you start seeing the temperature change in your vineyard, you start to pay more attention to it.”

But environmental concerns are not enough to sway some winemakers.

Willie Lunn, senior winemaker with Argyle Winery in Dundee, Ore., said his business became solely screw caps in 2002 and will be staying put for the time being.

“The reason we went to screw cap was purely a quality point of view,” Lunn said. “For us, wine making is about the wine.”

And as consumers’ resistance to screw caps or romantic ties to cork have died down some, screw caps seem to have strengthened their footing. Winemakers say they are even seeing some consumers ask for screw caps for ease of use.

The cork industry did react as winemakers fled to other options, cleaning up its production and screening process to cut down on taint, such as using better wood and quicker drying methods. The world’s largest cork maker, Amorim, said it has spent several million dollars on its upgrades.

That’s what won Bernau, whose winery once successfully sued its cork maker over taint, back to cork. He says the level of taint has been dramatically reduced with some of the cork industry’s new innovations.

But it is still unresolved for some.

“It’s a very complex issue. I don’t have a problem with cork,” said Dave Paige, winemaker at Adelsheim Vineyard in Newberg, Ore. “I’m just acknowledging that sooner or later someone is going to come up with something relative to cork that is equal in quality, acceptable to the public and recyclable. Then the conversation is over.”

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Saturday, August 18, 2007

As Billboards, Public Phones Always Work

By JO CRAVEN McGINTY; Published: August 17, 2007

They stand on corners from Brighton Beach to the Bronx, all but mocking New Yorkers: Pay phones that may or may not work, which you can’t even check for a dial tone without worrying about germs.

But they remain rooted in the pavement of New York, blocking pedestrian traffic, looking a bit like museum pieces in an age of cellphones, BlackBerrys and Bluetooth headsets.

There is a reason for their survival: Public telephones are one of the stranger cash cows in city finance. Not because of the coins that are fed into them, but rather because of the millions upon millions that companies are willing to pay to put ads on them.

The phone kiosks generate $62 million in advertising revenue annually — and last year the city got $13.7 million of the take, triple what it pulled in from calls.

Over all, the number of pay phones in New York is falling, as it is throughout the country. But in a phenomenon unique to New York, the phones are more valuable than ever, thanks to the intense competition among advertisers for attention in a city of eight million.

Phone companies say the pay phones are still necessary, noting that during 9/11 and the 2003 blackout, people lined up to use them. But it is the phone kiosks’ desirability to advertisers, who love them because they are inexpensive and plentiful, that appears to be driving pressure on the city for permission to install new phones in choice locations.

Since 2003, every new phone the city has authorized has been put at the curb, the only spot where city regulations permit advertising. It has approved moving 465 pay phones from alongside buildings to the curb.

The phones are a source of frustration to some neighborhood and community groups, who say the city is giving precious sidewalk space over to what New York needs least: more messages from Madison Avenue. They are urging the city to put limits on pay phones and their advertising.

“The phone booths are unkempt. They are dirty. The advertising is overwhelming,” said Vanessa Gruen, director of special projects for the Municipal Art Society, which has objected to the phones. “The sidewalks of New York are our biggest public space, and somebody should be watching over them, and they should not be for sale for the city to make money out of them.”

The Department of Information Technology and Telecommunications, which regulates the phones, declined to discuss their pay phone policies. Press aides to Mayor Michael R. Bloomberg did not respond to an e-mail message.

New York transformed the pay phone business in 1999 when it signed franchise agreements with all pay phone companies operating in the city and required them to use media representatives specializing in outdoor marketing to sell their ad space. Previously, only New York Telephone was licensed to provide pay phones in the city, though other companies did so anyway. Now, 39 pay phone companies have agreements.

Within two years, the city’s pay phone ad revenue had outstripped its earnings from calls. The city collects 26 percent of the ad money, while it gets 10 percent of the revenue from local calls and 50 percent from long-distance calls.

The gap between the income sources has continued to widen.

“One of the top buys in New York right now, and it has been for the last couple of years, is phone kiosks,” said Keith Stewart, vice president of Generation Outdoor, which places outdoor advertising. “We’re able to spend a fraction of what we would for other outdoor formats. With kiosks, I can blanket the city.”

Although the number of phones in the city is shrinking — there are now about 22,700 — , 80 percent of the decline has been from phones alongside buildings, rather than at the curb, according to the Department of Information Technology and Telecommunications. Those are the phones that do not permit advertising.

“It’s so clearly for advertising,” said David G. Liston, chairman of Manhattan Community Board Eight.

Mr. Liston would rather have trees than pay phones sprouting from city curbs. “Sometimes, you’ll see two and three pay phones together as if it’s an airport,” he said. “It’s almost as if they are putting out more phones for bigger ad spaces.”

Some restrictions have been put in place. Advertising on curbside kiosks on purely residential streets is not allowed. And no ads are permitted on any new pay phones approved since December 2004 in Manhattan neighborhoods south of Harlem.

Pay phone companies say they sympathize with neighborhood residents. But they warn that New York would be worse off with fewer public phones, and ads help the companies survive.

“It’s keeping the public pay phones alive,” said Les Shafran, executive director of the Independent Payphone Association of New York.

While the agreements vary, generally, the phone companies receive up to a third of the revenue, while media representatives who market the space take in roughly 50 percent.

“Pay phone providers in other parts of the county are seeing ad revenue, but not like New York,” said Tracey Timpanaro, editor and publisher of Perspectives on Public Communication magazine, a publication of the American Public Communications Council. “It’s the foot traffic. No other place is going to have that level of foot traffic.”

Mr. Stewart agrees: “It’s definitely a New York niche phenomenon. Once you get to New York, you’re batting with everything. You have taxi tops, transit shelters and urban panels. You have bus sides, bus interiors, subway interiors and subway platform posters. And then you have traditional bulletins — the billboards — and, in some cases, walls.”

Even in such a saturated market, Richard Schaps, the chairman and chief executive of Van Wagner, the media representative that controls advertising on 3,000 of the city’s phone kiosks, says there is room for growth.

Van Wagner has spent at least $129,000 since 2000 to lobby the city for pay phone advertising and the installation of phones on city streets. And it has asked the Traffic Audit Bureau, which monitors the reach of billboards and other outdoor media, to devise a method to measure pay phone kiosks as well — a first for the bureau.

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Thursday, August 16, 2007

Home Depot loses store permit battle

The L.A. City Council votes to require a more extensive environmental review, setting the project back months.
By David Zahniser August 16, 2007

The Los Angeles City Council dealt a final blow Wednesday to Home Depot’s high-stakes bid to secure an over-the-counter permit for a new store in Sunland-Tujunga, disregarding a lobbying blitz waged by the company over the last two weeks.

The council voted 12 to 1 to require Home Depot’s project to go through a more extensive environmental review — a move that doesn’t halt the project but will require months of additional work.


The vote was a victory for Councilwoman Wendy Greuel, who said Home Depot triggered the review by performing extensive construction work inside an old Kmart building.

After the vote, Greuel said Home Depot’s aggressive attempt to sway her colleagues — a campaign that involved at least a dozen lobbyists, two of them former elected officials — had backfired on the home improvement giant.

“Many of my colleagues said to me that they were offended by the kind of pressure and tactics that were used,” said the councilwoman, whose district includes Sunland-Tujunga. “What we’re saying is: We cannot be bought and sold.”

The vote brought an end, at least for now, to an acrimonious land-use fight in the northeast San Fernando Valley that had touched on race, immigration and the city’s business climate. For more than a year, supporters and opponents have taken to websites, talk radio and the council chamber’s floor as they debated the proposed store, which would occupy a 93,000-square-foot structure on Foothill Boulevard.

The two sides worked furiously to make their case until the very end. Opponents, sensitive over accusations that their cause was anti-Latino, brought with them a religious leader involved in the sanctuary movement for illegal immigrants. Lobbyists for Home Depot went further, arguing that a vote against the hardware chain could hurt the city’s effort to address global warming — by discouraging businesses from adding fuel-efficient air conditioning systems.

Home Depot representatives said after the vote that they had not decided on their next move. But they defended their efforts at persuading council members, a campaign that involved five lobbying firms and several community organizers.

“We had a story to tell the council people, and we felt that story was important,” company spokesman Damian Jones said. “We hired people that would tell that story, and there is nothing wrong, in our definition, with trying to tell that story.”

Councilman Tony Cardenas, who cast the lone dissenting vote, said the council’s decision made the building permit process murkier and left the city vulnerable to a lawsuit.

Supporters of Home Depot also warned that the vote would cause businesses to face more expenses and more red tape as they attempt to rehabilitate existing buildings.

“This is going to create a lot of havoc down the road for anyone who’s trying to take out a building permit,” said Brendan Huffman, president of the Valley Industry and Commerce Assn.

Home Depot representatives have repeatedly voiced frustration, saying the company secured the over-the-counter permit for the store in July 2006 only to see the process reopened and repeatedly delayed.

Sunland-Tujunga residents challenged the permit and five months ago persuaded a zoning administrator to revoke it. When Home Depot appealed the decision, the North Valley Area Planning Commission voted 3 to 2 to restore the permit.

The council’s vote Wednesday reversed that decision, requiring Home Depot to complete either a mitigated negative declaration, which is a lower-level form of environmental review, or a more extensive environmental impact report.

Home Depot said the latter process would delay its project up to two years. But opponents immediately made it clear that they would press for the most exhaustive process possible.

“We will push for a new traffic study, an air quality study, a noise impact study, and definitely demand that the hours of operation be put in the mitigation package,” said Abby Diamond, an activist with the Sunland-Tujunga Alliance.

From the moment they entered the council chamber Wednesday, Home Depot representatives indicated that they expected to lose their fight. the company did not bring in scores of supporters in orange Home Depot T-shirts, as it had at the last three public meetings on the issue.

Home Depot lobbyist and lawyer Lucinda Starrett called the opposition anti-competitive, saying the nearby Do-It Center home improvement store had its own contingent of lobbyists. She said her client, which spent $2 million on a project that is 90% complete, had been forced to go through a level of review not required of other businesses.

“We spent two years following the rules, the same rules that apply everywhere else,” she said.

Greuel disagreed, saying the store would be open if the company had not tried so hard to avoid the city’s environmental review process. The councilwoman also lashed out at critics who said the vote would hurt the local economy. “To suggest that I would not be business-friendly, that this council would not be business-friendly, is offensive to me,” she said.

david.zahniser@latimes.com

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Wednesday, August 15, 2007

Army of lobbyists builds case for Home Depot

L.A. council members get an earful as the firm battles to build a Sunland-Tujunga store.
By David Zahniser, Los Angeles Times Staff Writer August 15, 2007

Forget the talk about traffic, zoning and even day laborers. At Los Angeles City Hall, the fight over a new Home Depot may boil down to a single question: How many lobbyists will it take to open one hardware store in the San Fernando Valley?


Home Depot’s push to expand into Sunland-Tujunga might seem like the most local of controversies, one pitting a retail chain against angry neighbors worried about blight and congested streets.

But over the course of two years, the issues surrounding the proposed Home Depot on Foothill Boulevard have expanded to include race, the nation’s immigration reform bill and, not surprisingly, Home Depot’s ambitious plans for Southern California.

With a final vote scheduled for today, the fight over the hardware giant has attracted not just vocal residents of the northeast Valley, but a contingent of highly paid lobbyists and lobbying consultants from across the city — so many that the issue now has one lobbying professional for each member of the 15-seat City Council.

Since the controversy reached the council two weeks ago, Councilman Dennis Zine has heard from Rick Taylor, a lobbyist and political consultant who worked on his campaign. Councilman Herb Wesson received a call from his friend, the lobbyist and political consultant Kerman Maddox, who is a partner in Taylor’s firm, Dakota Communications.

Councilwoman Jan Perry spoke with lobbying consultant Richard Alatorre, a former city councilman who represented neighborhoods near downtown Los Angeles.

And Councilman Richard Alarcon received a call from lobbyist Fernando Guerra, who has two clients in Alarcon’s San Fernando Valley district.

“In my five years as a council member, I have never seen or experienced the kind of lobbying that’s occurred,” said Councilwoman Wendy Greuel, who hopes to persuade her colleagues that Home Depot performed such extensive repair work to an old Kmart that it must undergo a more thorough environmental review.

Home Depot has changed tactics as the project has moved closer to a final vote, shifting its emphasis from supporters in orange T-shirts to well-connected surrogates in business suits, each with ties to specific council members. Greuel, who made business and transit issues the cornerstone of her tenure, has already received calls from such civic leaders such as David Fleming, board chairman of the Los Angeles Area Chamber of Commerce — and a lawyer with Latham & Watkins, which represents Home Depot.

Home Depot hired Alatorre and former Assemblyman Mike Roos in recent days, said company spokesman Damian Jones. With the company planning to open 11 more stores in Los Angeles alone, it needs such firepower to prevent the council from creating a new precedent that could affect other potential sites, Jones said.

“This is a big issue for us,” he added. “We’ve been battling on this for two years.”

Even as the council met Tuesday, Home Depot lobbyists occupied a room behind the chamber normally devoted to closed-session meetings, asking council members to come in and hear their arguments. Perry kicked them out, but only after they had made their case to Councilman Bill Rosendahl.

That kind of access has been eye-opening for Home Depot opponents like Abby Diamond, an organizer with the Sunland-Tujunga Alliance. “We definitely feel like there’s a big machine at work that we can’t possibly compete with in influence and dollars,” she said.

While Home Depot representatives made their case, council members also heard from a key foe of Home Depot: the Do-It Center on Foothill Boulevard.

That company has its own cluster of lobbyists tracking the issue, including Arnie Berghoff, who spoke to council members as Home Depot lobbyists roamed the halls elsewhere.

The involvement of Do-It Center instantly provided fodder for Home Depot, which distributed a 114-page booklet to council members accusing its opponents of being anti-competitive. The booklet also included dozens of survey forms — some solicited by Home Depot, others collected by the Sunland Tujunga Neighborhood Council — in which residents described Home Depot as a magnet for day laborers.

Many of the cards complained about day laborers, while others directly attacked Mexicans and undocumented workers. “Don’t want illegal aliens hanging around,” said one unsigned form turned into the neighborhood council.

Diamond said her group was equally offended by the remarks. “Unfortunately, there are ignorant and intolerant people in every town,” she said. “Race, day laborers or immigration has never been an issue in our campaign.”

The intensity of the Home Depot lobbying effort may backfire with some council members, who accused the company of being a bad neighbor. Councilman Bernard C. Parks said Home Depot resisted requests that it provide better maintenance of a store in his district.

Parks voiced particular dismay that Home Depot inserted language in a recent federal immigration bill — legislation that ultimately didn’t pass — that would have barred cities from requiring large hardware stores to construct day labor centers on their parking lots.

Jones, the Home Depot representative, said the issue has no connection with the debate in Sunland-Tujunga. “Different topic, different day,” he said.

david.zahniser@latimes.com

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Monday, August 13, 2007

Affluent Growth Via a Gourmet Market

Developers Court Upscale Grocers to Draw High-Income Customers in Virginia

By Kendra Marr Washington Post Staff Writer
Monday, August 13, 2007; D01

Residents around the western edge of Woodbridge yearned for classy places to dine, shop and play. They waited and waited.

And last month their wish was finally granted. On opening night, more than a thousand residents streamed through the doors of the community’s newest elite establishment — a grocery store.

“It’s nice to finally have something upscale to go with the house values,” said Ernesto Flores, 36, who just moved from Arlington.

This is the power of a gourmet grocer in the Washington area. The new Harris Teeter near Woodbridge isn’t a five-star eatery, but it has the ability to lure the popular retailers and affluent customers that developers covet.

 

Developers court these grocers with plenty of facts and figures. The grocers they seek are attracted to communities with “stronger demographics,” said Christopher Weilminster, senior vice president of leasing for Federal Realty.

Translation: high disposable incomes, high education levels, high traffic and high density.

Northern Virginia typically fits the bill. Thirty years ago, the suburbs were mostly bedroom communities for military and federal employees, said Bob Kettler, a developer.

Now, as the area has diversified with such companies as Oracle and Sprint Nextel, there’s been a remarkable shift in the education and financial capabilities of the entire marketplace, he said.

“These are people with high disposable incomes,” Kettler said. “They have knowledge about the products and the ability to buy them.”

Of the 40 grocery stores under construction, both gourmet and otherwise, in the Washington area, 65 percent are in Northern Virginia, according to Delta Associates, an Alexandria retail research firm.

Arlington County illustrates the appeal. In 2006, households there spent significantly more than average U.S. households on groceries and eating out, and spent slightly more in each category than regional counterparts, according to a newly published study by Arlington Economic Development.

Harris Teeter, since arriving in the Washington area from North Carolina about a decade ago, has opened the vast majority of its stores in Northern Virginia. Another chain, Wegmans, will open four superstores in Northern Virginia and four in Maryland.

“Not one area in America can replicate Northern Virginia in the level of affluence and the broad base of that affluence,” said Jeffrey Metzger, publisher of Food World, a trade publication.

The right demographics helped Prince William County land the Harris Teeter near Woodbridge, said Don E. Stedham, vice president of investment for Regency Centers.

They had the same effect in Gainesville, where a Harris Teeter will anchor a mixed-use development, Madison Crescent, expected to open in September. The median household income is $84,930 in a five-mile radius around Madison Crescent. It will be a gateway to Prince William County, which has a median household income of $89,634, according to a 2005 census survey. Townhouses start at $299,990.

“We were able to provide them high visibility in a growing area with good opportunities for jobs, good home values and demographics of a particular income level,” said John D. Rhoad Jr. of RMJ Development Group, who is building the development.

The specialty grocery store craze took off in the Washington area in the early 1980s, when Federal Realty revamped the Wildwood Shopping Center in Bethesda, replacing the old Grand Union with a Sutton Place Gourmet, which is now part of the Balducci’s family, Weilminster said. The new store was “wildly successful,” as affluent customers and retailers flocked to the area, he said.

“That’s when we understood how powerful the right grocery operator can be,” Weilminster said.

Over the years, some communities have complained that they have waited a long time for a gourmet grocer of their own. No matter how much they begged (Wegmans received 4,800 requests for stores last year) or pleaded (Balducci’s gets frequent phone calls from developers and homeowners), a specialty store remained just a wish.

“It’s only a matter of time,” said Gregory H. Leisch, chief executive of Delta Associates. “Virtually every Zip code with above average incomes in the metropolitan area is going to be well served with upscale grocers.”

While demographics are important, other factors can influence where a grocery store is built. Not all communities have the land to handle a 140,000-square-foot Wegmans with 700 employees. Wegmans stores tend to be regional, and on weekends, shoppers from as far as Richmond and Charlottesville crowd the Fairfax store.

“You have to go when everyone else is at church or late, late at night,” said Marlene Marx, 59, of Oakton.

Whole Foods, Balducci’s and Trader Joe’s typically run one-size-fits-all operations with specific real estate, parking and layout requirements. Harris Teeter has been the most flexible, developers said. In North Bethesda a two-level store is under construction.

“An 18-story apartment building will sit above grocery store,” said Michael J. Smith of LCOR, which is developing the North Bethesda project. “Harris Teeter was comfortable with a dense, urban mixed-use project with existing real estate close by. They’re one of the few operators that’s comfortable working within that kind of an envelope.”

The grocer is able to squeeze into smaller urban locations. Federal Realty is building a 29,000-square-foot Harris Teeter in Shirlington, a store about half the size of an average food retailer.

“Traditional grocers like Giant and Safeway were not candidates,” Weilminster said. “They couldn’t figure out a way to vary their product mix in such a small space.”

Though the gourmet stores have their appeal, traditional groceries still dominate the greater Washington area. Giant led the list of top 10 supermarket chains in the area in total sales, with 133 stores totaling $3.41 billion in sales, or 37.12 percent of the market, according to a survey this year by Food World.

Safeway, Shoppers Food Warehouse and Food Lion followed. Whole Foods came in fifth with 4.06 percent of the market. Harris Teeter ranked sixth with 2.57 percent and Wegmans was seventh, with 1.71 percent. Trader Joe’s didn’t rank in the top 10.

The competition for that market share is only getting tougher, analysts said. People are eating out more. Big-box retailers, such as Wal-Mart and Target, are entering the food market. Ethnic markets are growing.

“Everybody sharpening their focus — this is what we provide and what the other guy doesn’t have,” said Metzger, noting that the Washington region has become one of the most competitive markets for grocery stores.

A Washington area grocery store serves an average of 9,700 people, compared with the national average of 8,500 people, according to Delta Associates.

As soon as a gourmet grocery store announces it will anchor a new shopping center, adjacent storefronts immediately start leasing, developers said.

Wegmans’s upcoming arrival in Leesburg sparked interest from Barnes and Noble, Borders, and Linens ‘n Things, said Kettler, the developer. “Wegmans can drive enough traffic to support a larger retail community with so many more uses,” he said. “It draws a certain type of customers, which retailers like. The combination of the two is incredibly powerful.”

Harris Teeter has become one of Madison Crescent’s main selling points. Fliers tell retailers to “Join Harris Teeter,” the development’s Web site notifies prospective tenants that the grocer is within walking distance, and maps feature the store as a prominent structure.

Starbucks, China Wok, Escape Salon & Day Spa and Subway occupy the new Harris Teeter-anchored plaza at Prince William Parkway and Hoadly Road near Woodbridge. “It made my job a lot easier when Harris Teeter came on board,” Stedham said.

Residents hope that the development will have ripples.

“We need a good sit-down restaurant,” said Thomas Burrell, vice president of the Lake Ridge-Occoquan-Coles Civic Association. “I think we have enough Burger Kings, McDonald’s and KFCs.”

Posted by M at 14:05:30 | Permalink | No Comments »

Sunday, August 5, 2007

Selling a Concept With a Song

By STEPHANIE ROSENBLOOM ; Published: August 5, 2007

NEVER mind your iPod music library, your zippy cellphone ring and your collection of 45-r.p.m. singles.

Bob Scott

Has your condo got a song in its heart?

 

It seems every new condominium these days has its own tune, meant to convey its soul to potential buyers. At 151 Wooster Street (151wooster.com ) in SoHo, it is a jazz track featuring a lone trumpet. Vigorous strings evoke Vivaldi at the Cielo (cielocondos.com) on the Upper East Side. Electronic music heralds 166 Perry Street ( 166perryst.com) in the West Village.

Developers are forever adding bells and whistles to distinguish their properties from all the others on the market. And as Web sites are increasingly being used as teasers to drive buyers (especially out-of-state and international buyers) into sales offices, many developers are going beyond slick graphics and literally orchestrating the journey.

Reports about classical music being played in public spaces to decrease crime or ease anxiety, as well as widely publicized studies from Muzak about music’s ability to increase efficiency and make people feel better, have led some developers and marketers to think music will make buyers more relaxed and engaged at their Web sites.

More significantly, by commissioning or licensing (or illegally using) music for their Web sites and sales offices, developers say they are better able to convey the vibe of a particular building, especially when that building is yet to exist. Music is also seen as an effective way to announce a building’s intended demographic without ever saying a word.

“Certain types of people generally have an affinity for one type of music more than another,” said Shaun Osher, the chief executive of CORE Group Marketing, which has worked on a number of music-infused campaigns.

This, of course, raises questions about exactly who is invited, so to speak, by which developments.

Musical themes are chosen for a number of reasons, including a building’s location, its history, the target demographic and the personality and preferences of the developer. “It has to reflect the aspirations and the intentions of this whole group of people who are involved — building architects, interior architects, contractors, developers, selling agents, designers,” said John Atwood of Atwood Design Systems, which has created Web sites for new developments, including Blue ( bluecondonyc.com) on the Lower East Side and Artisan Lofts (artisanlofts.com ) in TriBeCa.

Developers and marketers have no clearly defined rules about what music belongs with which building. In general, though, buildings that are downtown or have modern designs seem to be willing to try newer musical genres like electronica. Buildings with long histories or those that are not specifically aiming at young buyers often use classical. Jazz, with its myriad styles, tends to cross geographical and architectural boundaries.

So which buildings are trying to attract which kinds of buyers? And where — if anywhere — do you fit in?

“There are a bunch of different fantasies at play,” said Anahid Kassabian, the James and Constance Alsop chair of music at the University of Liverpool who studies and writes about the use of music in public spaces and in film.

For instance, she said, the world-lounge style of music being used to sell the Setai New York (setainy.com) and 75 Wall (75wall.com), both in the Financial District, taps into “a profound fantasy of cosmopolitanism” and “hipness.”

“It’s got a certain kind of rhythm and mixing,” Dr. Kassabian said. “There’s this global quality to it. It doesn’t just say, ‘Listen, this is Algerian rai pop.’ It says, ‘Oh look, this is somebody who sings in the rai style in a kind of global lounge setting.’ “

The soundtrack on the Web site and in the sales center for the Setai is from Buddha-Bar, the restaurant chain that began as a Parisian hot spot.

“It had that Asian hip scene that translated well to the Setai,” said Kaley Pickett, project manager for the Marketing Directors Inc. A member of the building’s marketing team was familiar with the Buddha-Bar CDs, Ms. Pickett said, and the team thought that in addition to setting a tone for the building, the music (from CD Volumes 3 and 4) would also be soothing.

Jacqueline Urgo, the president of the Marketing Directors, defined the Setai’s target demographic as urban, progressive, wealthy and international. “They have the right job,” Ms. Urgo said. “The Setai Club is the right exclusive club to be at.”

But Ms. Pickett pointed out that “the music is a little more representative of the product, not as much the buyer.”

In the sales center for 101 Warren Street (101warren.com) in TriBeCa, visitors inquired about buying the lounge music (a compilation from the Hôtel Costes in Paris) that was being played, said Jasmine Mir, the senior vice president of the Corcoran Sunshine Marketing Group.

Dr. Kassabian was not surprised.

“It’s like collecting African masks,” she said. “It puts the residents in a kind of circuit of hipness.”

The world-lounge music style is not for everyone, though. “I can’t imagine that very many people in their 60s are spoken to by that,” Dr. Kassabian said. “It’s a real sort of choice to do 30s and 40s. And the electronic stuff is even younger.”

The electronic music used for a modern building like 166 Perry Street, with its undulating glass facade, is a slightly subdued version of what one might hear in certain clubs in the early hours of the morning.

After listening to Perry Street’s Web site, Mark Spicer, an associate professor of music theory and popular-music studies at Hunter College and the Graduate Center of the City University of New York, described it as “alien space,” trance and avant-garde. “This is supposed to sound futuristic,” he said, to jibe with the building’s modernity. “I can’t imagine that music appealing to old money.”

One of the Perry Street developers, Charles Blaichman, calls the music moody, cool and minimalist.

“Either you’re going to get that kind of architecture or you’re not,” Mr. Blaichman said. “We’re thinking the music on the Web site will either speak to that buyer or not. It’s not for everybody. Just like any building is not for everybody.”

The music for the majority of developments is not startling, brash or breathtaking. Rock music is rare. One building that comes closest to that genre is 246W17 (246w17.com) in Chelsea, where the music sounds like the B-52’s-meets-”Sesame Street.”

“We felt the B-52’s type of vibe — family, fun, upbeat — was perfect,” said Mr. Osher of CORE Group Marketing. The piece was written and produced for the building with the goal of having broad appeal and attracting people “who came from many different walks of life,” he said.

Mr. Blaichman, who also worked on 246 West 17th Street, said he originally wanted to use “Our House” by Crosby, Stills, Nash & Young, but it was incredibly expensive. Instead, he had something produced that would convey a similar tone. “It’s light, it’s fun, it’s not that serious,” he said.

Dr. Spicer, without knowing the developer’s intentions, characterized the music as a generic American bar band rock groove. “It seems to be very inclusive,” he said. “This is definitely looking to be a more down-to-earth, everyman kind of complex, and the music fits that.” When it comes to one of the most often used genres — jazz — developers frequently choose cool jazz, probably because it is relaxed and inoffensive, said Bradley Brookshire, the director of graduate studies at the Conservatory of Music at the State University College at Purchase, N.Y. “It is a toned down celebration,” Dr. Brookshire said. “Like a wine-and-cheese party.”

Both classical and cool jazz offer a general appeal rather than a particular one, Dr. Kassabian said. “The classical does a kind of elitism, whereas cool jazz does a kind of relaxation,” she said. “They hit slightly differently.”

Classical music is piped into bus and train stations, she said, because “everybody knows you’re supposed to behave nicely in the presence of it.”

Elliott Ingerman, a partner in Tribeca Associates, the developer of Artisan Lofts, said the team had originally planned to use classical music in its marketing but ultimately created a piece inspired by “Take Five” by Dave Brubeck because it was just as sophisticated but more fun and a bit more “downtown” than classical. Another downtown building, 141 Fifth Avenue ( 141FifthAvenue.com) uses a more modern jazz piece by Wayne Shorter.

Linking a building with any sort of music runs the risk of alienating some buyers, particularly if the music is loud or repetitive, but for many marketers the benefits outweigh the pitfalls. In fact, the greater risk of using music on a Web site, Ms. Mir of Corcoran Sunshine said, is outing the scores of buyers who surreptitiously surf the sites at work. After all, no developer wants a potential buyer to click off its Web site for any reason.

“We would always include the on/off button,” Ms. Mir said, adding that some developers might not if they wanted tight control over the way the marketing message was being delivered.

Studies about the subliminal power of music to influence shoppers have led some marketers to think music can affect buyers, but many music scholars say quantitative studies are suspect. Even Muzak has become “less about science than about art,” said Bob Finigan, Muzak’s vice president for product and marketing. “Does it translate to more sales? Does it decrease perceived wait times in a bank line?” he said. “I would say absolutely. But to capture that in research is really, really a slippery slope.”

Most of the music that developers use is unidentifiable. Lyrics are not common. “They want music to be ‘not conscious,’ ” Dr. Kassabian said. “One of the ways you do that is making it not specifically recognizable.”

When the music is recognizable, it is often a veiled version of an iconic composition, which may or may not be legal. Acquiring rights to music is often a multistep process that may involve paying the many people involved, Mr. Atwood said.

In the end, buyers generally choose homes based on cost, location and architectural details, not whether the building is more Brahms than Bjork.

Sean Davis, the owner of Tosler Davis, a hair salon on lower Fifth Avenue and a resident of 246W17, gets a kick out of the Web site’s upbeat theme song and jolly cartoon residents, especially the ones with Vespas, because the motor scooter is his and his partner’s preferred mode of transportation. “We’re the people who are supposed to be in here,” he said and laughed.

In general, though, he dislikes music on Web sites because he finds it jarring or dated. It would not, he said, inspire him to buy in a particular building. “It’s part of the package in terms of seducing you,” Mr. Davis said. “But it comes down to the same things: square footage, views, light, finishes, a value for your money.”

Still, if you are feeling left out because your building does not have a theme song from a Parisian club or a jazz legend, do not despair. Once a new development is sold out, its musical Web site and sales center disappear. The needle is lifted from the record, and the building, like all the rest, silently pierces the sky.

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