RIVER PARK SQUARE GAINS GROUND IN 2003

Look Back Shows Growth and Momentum for 
Downtown Revitalization Project

In a year when the Inland Northwest continued to struggle economically, River Park Square, credited with triggering this city’s downtown revitalization posted gains in gross sales and economic impact.

River Park Square finished 2003 at an all-time high in year-over-year gross sales, according to Bob Smith, manager of the urban, dining and entertainment center. Smith attributed the center’s success, which came despite uncertain economic times and retail industry volatility, to refined marketing and leasing strategies that focused on attracting more merchants and increasing traffic to grow sales. 

“We’re proud to report that River Park Square is doing well,” he said.  “There’s more to do, to see, to eat and to buy than ever before. The word is getting out in our community and in our region that this is a place like no other.”  

Like its retail center counterpart, the River Park Square parking garage also posted all-time highs.  

An additional 31,906 cars parked in the garage in 2003, eclipsing the previous high established in 2002.  Total car counts reached 900,649 in 2003, a four percent increase over 2002.  Gross revenues totaled $2,265,023 in 2003, up four percent over 2002. 

Gross Retail Sales Continue to Climb 
For the fifth consecutive year, the center’s sales increased, establishing a new high mark in the downtown revitalization project’s five-year history.  Gross retail sales hit $69 million in 2003, up two percent over 2002, and 18 percent ahead of 2000, the center’s first full-year of operation.  

Smith credits River Park Square’s upward trend to the expanded mix of local, regional and national merchants, many of which are unique to Spokane.  New consumer-friendly programs and events also played a role in driving traffic and sales.

“This past holiday season was the best we’ve had yet,” said Kerri Marcus, manager of the local women and children’s boutique, Miaz.  “Customers were pleased with the new merchandise we added in the store, and we saw an increased number of shoppers because there was a lot more tenant and event activity at River Park Square.”  

Smith expects last year’s introduction of the River Park Square gift certificate program, which has received strong customer interest, to help carry the momentum into the early months of this year. First quarter 2004 sales are likely to show a residual boost from 2003 gift certificate sales because they are factored into retail sales figures when redeemed, he explained.

New Merchants Diversify Mix of Offerings
A strong leasing effort expanded the merchandise mix and tenant roster. Several short-term merchants that operated during the holiday season complimented the new and existing long-term store mix.  

Among the continuing merchants, The Collector’s Zone and Subway opened in late summer, followed by EB Games and Mariposa in the second-half of the year.  The newly created Marketplace, a designated area of kiosks offering a variety of merchandise, opened in October.  

Award-winning local restaurant Rock City Grill relocated to River Park Square in December to expand its operations and be closer to the center of downtown.  

“It’s been a wonderful move for us,” said Jim Rhoades, owner of Rock City Grill.  “Business has been great and we are very happy at River Park Square.”

Regis Salons has signed a lease to open at River Park Square and is currently under construction, slated to open in April 2004.  The hair salon will occupy 1,000 square-feet on the second level, next to Aveda.  Regis will employ about 15 stylists and provide hair styling and products for men and women.  Its River Park Square salon will be one of only a few downtown locations nationwide, according to Al Golz, leasing agent for Regis Salons. 

“We were impressed by the River Park Square redevelopment and the surrounding office and university area,” added Golz. 

Center Makes Significant Economic Impacts 
Increasing sales and garage revenues are evidence of River Park Square’s continued success in its vision to revitalize downtown and generate significant economic impacts for the region.  While the center has sparked more than $1 billion in new investment in and around the urban core, it has generated tax and fee revenues of $6.4 million in 2003.  

Total economic impacts are estimated at $37 million. The City of Spokane has received $10.7 million of these monies, parts of which help bus service, schools, and cultural venues.  Spokane Public Schools has received $1.6 million, the Spokane Transit Authority, $1.1 million, and $363,000 has been paid to the Public Facilities District, which manages the Spokane Arena among other venues.

A Community Centerpiece
River Park Square’s economic impacts go beyond dollars and cents, added Smith.   It is a center for employment – nearly 1,100 people work at River Park Square - and for the community to gather.   

“River Park Square is continuing to establish itself as the community’s gathering place,” he said.   

Last year the center launched an on-site retail educational initiative in partnership with Spokane Public Schools.  The workforce training program is the first of its kind in the region to focus on developing retail training, business skills and employability skills through real-world experience.  

Also throughout 2003, the retail center hosted several notable community-wide events. They included the Martin Luther King Jr. Spokane Celebration, Visual Arts Tour, SpoKanstruction, a welcome home celebration for Mt. Everest mountain climbers John and Jess Roskelley, a September 11 Commemoration ceremony, and First Night Spokane, along with dozens of other collaborative partnerships and promotions with regional non-profit organizations.