What Passes for Business Reporting in Utah

If you want business news in Utah, don't look for anything that matters from any of the local, mainstream media. The bulk of the "business reporting" here is nothing more than company press releases with no editing or additions. An article on the City Creek Center in this morning's Trib is a prime example. Taubman Centers, Inc., is developing and managing City Creek, and it has issued a press release about bringing Linda Wardell to town as general manager. The article is nothing but PR gush, waxing rhapsodic about the big plans for City Creek and touting Wardell's experience as general manager of The Pier Shops at Caesar's in Atlantic City. And the Trib swallowed it and published it whole.

The Trib could not have done any research for this article. A basic Google search would have shown that, when Taubman launched The Pier in 2006 (a major overhaul of an existing mall on the site of the old Million Dollar Pier), it planned to install up-scale shops and restaurants anchored to a big, tourist draw (Caesar's at Atlantic City). In other words, the same plan it intends to use here (Granted, Caesar's and Temple Square are different draws, but they are still big, single-anchor draws.). A little research also would have shown that last year Taubman and Wardell failed at The Pier; Taubman strategically defaulted on a $135 million note and turned the keys over to Bank of America (See here and here.).

That's a real nice record of success coming to town. And the Trib missed every bit of it. Way to keep your readers informed, guys.

Welcome Aboard the Real Estate Sag Wagon

Everybody knows residential real estate is going through a rough patch.  Mortgage applications are down to their lowest level since December 2000 (I guess people who've just seen their savings go "Poof" and whose jobs may do the same at any moment aren't interested in taking on 30-year obligations.).  Now the other shoe is dropping: commercial real estate.  Retail of course is a train wreck, with store after store going dark, and now Mervyn's announcing it will be liquidated by the end of the year.  Now developers are shocked, shocked to find that office space is overbuilt (Tenants can play musical chairs downtown at will, and 222 and City Creek aren't even built yet.  And Sandy and Cottonwood Heights are going great guns.  Some people are just easily surprised.)  (As an aside, Craig Mecham continues to use the downturn as an excuse for why there is still a hole in Sugarhouse.  Odd thing is, though, he claims he's going forward with the retail space and is just putting the condos on the back burner.  And Frank Gray, SLC'c community development director, is buying it and giving him more time to come into compliance.  Who says there's only one born every minute?).  The real estate market is a mess, it's getting messier, and it isn't suddenly going to pull out of this power dive any time soon.  Every fundamental (supply, demand, financing) is bad, and if you think the MOAB(Mother Of All Bailouts) is a magic wand, you need to sit down with a nice, big cuppa joe and wake up.