The possibility of two competing malls is raising speculation about whether Ames can support the two businesses.

North Grand Mall, which was recently purchased by GK Development Inc. of Barrington, Ill., will soon be renovated and possibly add one or two anchor stores. It stands to be in direct competition with a mall proposed by Wolford Development Inc. of Chattanooga, Tenn., that is in the process of being approved by the Ames City Council.

“We have talked to a professor in the economics department [at Iowa State] and have his study that essentially says that there is little demand out there besides what is already taken up by Jordan Creek and North Grand Mall,” said Joe Lynch, Ames Smart Growth Committee chairman. “There may be a little [demand] but certainly not enough to need a new mall, and even more unnecessary are two malls.”

The Ames Smart Growth Committee, a branch of a national coalition that works to support planning for development and revitalization of older areas and preservation of open space, has been questioning and protesting the need and the location of the proposed mall.

“In regards to Smart Growth, we like to see things develop slowly,” said Mary Ann Lundy, member of the Ames Smart Growth Committee.

“The general feeling is probably we wouldn’t be able to support a whole new mall.”

Ames Mayor Ted Tedesco said the city will not look at Wolford’s proposal differently just because the current mall stands to be updated.

“To keep a business out of a community simply because of fear that it will hurt local business, in my opinion, is not fair to the free enterprise system,” Tedesco said. “If you have someone that wants to build something in your community and they don’t want any city money, I don’t know how you can stop them from building.”

Tedesco said the plans for North Grand Mall will not be presented to the council in conjunction with the new mall proposal. Lynch, however, said that Smart Growth will use it as an argument against a new mall.

“Wolford’s local representative recently said there is no room in Ames for two malls,” Lynch said. “I’ve never believed that there was enough market in Ames for two malls, and we have a mall where we need a mall, surrounded by neighborhoods.

“Now it’s time for the City Council to acknowledge that one mall is enough.”

Bob Kindred, assistant city manager, said that the door was opened for competition when the majority of City Council members voted to rewrite the Land Use Policy Plan last year.

“The city itself has absolutely no position on whether there should be one mall or two malls,” Kindred said.

“The majority of the City Council was supportive of private enterprise.”

Kindred said the city takes risks in any type of new development, as it will have to with either mall. The city will have to spend money on aspects such as roads and utilities, although the public investment is small compared to the private investment.

“If the new owners want to propose a new expansion, the city will work with them as well, just as we have with Wolford,” Kindred said.

“There certainly could be negatives for the city in either situation.”

Kindred said the city has not done studies to test whether it is possible for two malls to survive in Ames.

“It’s respecting the free enterprise system,” Kindred said. “You would certainly hope that either company, before investing millions of dollars, would study their investment.”

The decision whether to allow two malls will likely come from the City Council in February.