ISU students’ shopping options may change if a second mall is built in Ames.

North Grand Mall officials said it’s too early to tell if another shopping center in Ames will affect business, however.

Kurt Carlson, general manager of the North Grand Mall, said the project is not far enough along to determine how the new mall would affect the community.

“It’s hard to say what the impact on us would be,” Carlson said.

Wolford Development, a company based in Chattanooga, Tenn., has approached the city of Ames proposing a 700,000-square-foot mall at the northeast side of the Interstate 35 and 13th Street interchange.

Carlson said business competition is healthy, but it could have negative effects on the area.

“The problem the industry has seen in the past is areas being overbuilt,” he said. “When you have too many businesses and not enough customers it can be a hindrance to a community.”

Wolford Development President James Wolford said the company is looking at four major anchor stores around the size of Sears to accompany the mall.

Wolford said they hope it would also have 75 specialty stores as tenants, several sub-anchors such as Barnes and Noble or Old Navy and a movie theater.

With the exception of the major stores, who would build and own their own space, the project’s estimated cost is around $60 million with completion as early as fall 2004, he said.

“We felt [the proposed mall] would bring into Ames a lot of sales that are traveling to other areas,” Wolford said.

Ames Economic Development Coordinator Mark Reinig said a regional mall has been considered by the city.

“This is the first time anyone has come forward with plans for a large retail center in this area,” Reinig said. “It’s part of our Land Use Policy Plan. We’ve looked ahead 20 years that there would be a need for regional retail usage in this area. It may happen sooner than we planned.”

According to the Land Use Policy Plan, the city had planned for a commercially zoned area east of I-35, but on U.S. Highway 30. Developing the 13th Street area for commerce would require an amendment to the Land Use Policy Plan.

Reinig said the city is looking at studies to make a recommendation to the City Council whether to approve the change. Those studies include traffic and environmental needs in the eastern part of town and how to deal with utilities to the area.

“The first step is to do the Land Use amendment,” Reinig said. “That’s what all these studies will determine. The developer will be required to do traffic studies and how that traffic will impact the area.”

The impact on North Grand mall would also have to be considered.

“I imagine that it would be tough for them,” Reinig said. “I’d imagine many of their vendors would move to the new site. Then we would look at dealing with the loss of tenants and how to keep the North Grand viable for commerce. It could become office space, small retail or all sorts of things.”

Peter Orazem, professor of economics, said North Grand Mall would have to change but not necessarily diminish.

“North Grand Mall may have to become more specialized,” he said. “If you’re a business that sells the same goods as the retailers in a new place, you have to focus on your niche.

“It depends on your target market,” he continued. “If you want students and the Ames community, then being in town would help. North Grand is still in town and that’s an advantage for them.”

Orazem said the proposed mall would get a lot of use from other towns and traffic along the interstate, including Story City, Nevada and possibly Ankeny.

“Des Moines is getting harder to drive around because of traffic congestion,” he said. “Having something easier to get to will be a real advantage.”

Wolford said he would want to have stores in the mall that would be of interest to ISU students.

“We would love to get input from the students,” he said. “What do students see is missing from the area and what can we bring them [here]. As we get further down the road I would love to see that dialogue.”