Hemmerdinger out as manager of Shops at Atlas Park
By Jeremy Walsh
Comment
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| Damon Hemmerdinger (inset) announced Wednesday that his family’s company is pulling out of the Shops at Atlas Park in Glendale, an open-air mall he opened in 2006. |
Three years after opening the Shops at Atlas Park in Glendale, developer Damon Hemmerdinger is out of the project, leaving his company’s creditors to run the mall.
In an open letter to the mall’s tenant businesses, vendors, neighbors and community leaders dated Jan. 21, Hemmerdinger said the involvement of ATCO Properties & Management, the Hemmerdinger family’s company, in the 400,000-square-foot mall would end effective Feb. 19.
ATCO’s lenders, the French banks Caylon and Societe Generale, will appoint a new management company, Hemmerdinger said. Representatives from Caylon did not return a request for comment by press time Wednesday.
“I believe in Atlas Park, and I believe that the residents of Queens want, deserve and can support high-quality, aspirational retail, restaurants and entertainment,” he said in the letter.
The mall saw foot traffic increase 30 percent last year and added 12 new stores, he said.
Hemmerdinger declined to comment further or clarify the financial nature of his company’s break with Atlas Park.
But Gary Giordano, district manager of Community Board 5, said ATCO was probably unable to keep up its loan payments after a sluggish couple of years and the ongoing economic slump.
The $180 million development of Atlas Park was completed in April 2006 with a $126 million loan from Wells Fargo.
“I’m sorry for his sake that it didn’t work out financially,” Giordano said. “I know he put a lot of time and effort into that to try to make it work. I guess it’s a very expensive proposition.”
Dave Kerpen, who runs The K Buzz, a marketing company located in Atlas Park’s office building, said he was saddened by the Hemmerdinger family’s departure.
“I think Damon and the management did everything they could to build out the property,” he said, blaming much of the mall’s misfortune on the nation’s economy, which claimed several retail chains that had branches in Atlas Park, including greeting card retailer Blue Tulip, which filed for Chapter 11 protection Jan. 5.
“It’s a very unfortunate mix of stores,” he said. “If you look at the stores that were in there, [furniture retailer] Bombay [Company] went under. That’s national. Blue Tulip went under. That’s national. There are rumors about Borders, again, a national situation.”
The mall was built on part of Atlas Terminals, an industrial park dating back to the turn of the 20th century that the Hemmerdingers have owned since 1922.
Industry thrived there until the 1960s, when the city’s manufacturing and industrial economy entered a decades-long decline.
Hemmerdinger said he still hopes to redevelop the rest of the property, though he said the company has no specific plans.
Eight to 10 remaining acres of the land were still zoned for industrial use as of 2006.
Reach reporter Jeremy Walsh by e-mail at jwalsh@timesledger.com or by phone at 718-229-0300, Ext. 154.
In an open letter to the mall’s tenant businesses, vendors, neighbors and community leaders dated Jan. 21, Hemmerdinger said the involvement of ATCO Properties & Management, the Hemmerdinger family’s company, in the 400,000-square-foot mall would end effective Feb. 19.
ATCO’s lenders, the French banks Caylon and Societe Generale, will appoint a new management company, Hemmerdinger said. Representatives from Caylon did not return a request for comment by press time Wednesday.
“I believe in Atlas Park, and I believe that the residents of Queens want, deserve and can support high-quality, aspirational retail, restaurants and entertainment,” he said in the letter.
The mall saw foot traffic increase 30 percent last year and added 12 new stores, he said.
Hemmerdinger declined to comment further or clarify the financial nature of his company’s break with Atlas Park.
But Gary Giordano, district manager of Community Board 5, said ATCO was probably unable to keep up its loan payments after a sluggish couple of years and the ongoing economic slump.
The $180 million development of Atlas Park was completed in April 2006 with a $126 million loan from Wells Fargo.
“I’m sorry for his sake that it didn’t work out financially,” Giordano said. “I know he put a lot of time and effort into that to try to make it work. I guess it’s a very expensive proposition.”
Dave Kerpen, who runs The K Buzz, a marketing company located in Atlas Park’s office building, said he was saddened by the Hemmerdinger family’s departure.
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“It’s a very unfortunate mix of stores,” he said. “If you look at the stores that were in there, [furniture retailer] Bombay [Company] went under. That’s national. Blue Tulip went under. That’s national. There are rumors about Borders, again, a national situation.”
The mall was built on part of Atlas Terminals, an industrial park dating back to the turn of the 20th century that the Hemmerdingers have owned since 1922.
Industry thrived there until the 1960s, when the city’s manufacturing and industrial economy entered a decades-long decline.
Hemmerdinger said he still hopes to redevelop the rest of the property, though he said the company has no specific plans.
Eight to 10 remaining acres of the land were still zoned for industrial use as of 2006.
Reach reporter Jeremy Walsh by e-mail at jwalsh@timesledger.com or by phone at 718-229-0300, Ext. 154.
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Reader Comments
The following are comments from the readers. In no way do they represent the view of yournabe.com.
Sammy wrote on Jan 22, 2009 11:00 PM:
" They put a high end shopping mall in the middle of a lower middle class/working class neighborhood full of auto body shops.
What the hell were they expecting? "
What the hell were they expecting? "
sad wrote on Jan 23, 2009 12:00 AM:
" well it's not their fault it's not a great neighborhood. it was a 100% classy operation, and very nice during the summer. "
Liz wrote on Jan 23, 2009 5:04 PM:
" Dale Hemmerdinger., chair of the MTA and Damon's father, tried to re-route buses to bring more traffic to the Atlas Park and failed. The community did not want additional traffic through their neighborhood. The location was problematic from the beginning. "
BuffyBot wrote on Jan 23, 2009 7:14 PM:
" Mr. Hemmerdinger's departure from the Atlas Park facility does not mean that the Shops at Atlas Park will not continue to operate. It just means an new management team will run the show. It's a beautiful facility with diverse shopping and entertainment that dresses our neighborhood nicely. "
Queen of the Damned wrote on Jan 23, 2009 7:21 PM:
" It's ironic that the community of glendale would rather their neighborhood be associated with a graveyard than a beautiful park with shops. The shops bring life and beauty to our community and perhaps we should support the vendors through this difficult transition. "
reality-check wrote on Jan 24, 2009 10:47 AM:
" I have worked at the mall and have watched from the cheap seats the daily battles of mall. Mall management including mall security was in constant battles with the stores. Even the couriers delivering their packages to the stores had their battles with mall management and security. Store fines fringed on extortion. Prospective store owners had a change of heart because they felt the rent was too high and the contract far too constraining and regimented. Yes, a bus shelter was set up – a stop at the mall. But then they set up another stop for another bus less than 100 feet away – eliminating street parking just in front of Chilis. Hmmmm…. Interesting… street parking has become more difficult. With the rents the stores pay, parking for purchasing clients should be free. Period. I shutter the thought of store owners turned away from the mall, yet exactly how many stores does this mall need that sell $89 Tshirts and $200 jeans. Finally the “I support the economy” give away – good idea if perhaps people were given Atlas Park gift cards instead of cash. At least the money would have been spent right there at stores, services, restaurants or the movies. "
Been there-saw that wrote on Jan 26, 2009 9:19 AM:
" Dont feel bad for Damon, he was unwilling to entertain
the idea of putting lower end stores. He has know one to blame but himself. "
the idea of putting lower end stores. He has know one to blame but himself. "
workedatlassinceday1 wrote on Jan 27, 2009 6:18 PM:
" I have worked in The Shops at Atlas Park since day 1. The biggest issue I have had is the Hemmerdingers walking around like they are royalty. I am glad to see Damon go. He is a clown that never knew how to close deals or generate any business. Please get rid of the paid parking, it's killing us. Customers complain daily about it. Tell Dave Kerpen to take a hike also. The guy is a sleeze bucket. I hope the new management team works to bring in some great retail shops! Sorry to see Blue Tulip go. Great, great staff! Nothing like it around. Will miss Mr. Rodriguez. He always donated to my daughters school and always asked how it was doing. A real class act. Bye Bye Damon! "
BuffyBot wrote on Jan 27, 2009 7:21 PM:
" When comments become offensive, it's no longer a forum but a circus.
Bashing Damon is uncalled for. He clearly tried to bring a vision of an upscale shopping center to Glendale and with a weak economy became a casualty of circumstance.
Damon is a good hearted community man and perhaps the community he has struggled to support, should rally and support his efforts.
What he has built here for us will only make our community a better place. "
Bashing Damon is uncalled for. He clearly tried to bring a vision of an upscale shopping center to Glendale and with a weak economy became a casualty of circumstance.
Damon is a good hearted community man and perhaps the community he has struggled to support, should rally and support his efforts.
What he has built here for us will only make our community a better place. "
starbucksmgr wrote on Feb 6, 2009 1:47 PM:
" "He clearly tried to bring a vision of an upscale shopping center to Glendale and with a weak economy became a casualty of circumstance. "
Are you kidding? Atlas Park was there way before any crisis with the economy. Do your homework. Damon turned down a ton of business from the start. I don't like or dislike him. But the fact remains that he did a poor job. Being good hearted has nothing to do with business and it shows.
Deerpark opened during the economy crisis and yet it opened at full capacity with high end stores at higher rents.
Good hearted or not the right thing to do was to not have him run The Shops at Atlas Park. I do agree that the name calling is immature and uncalled for. "
Are you kidding? Atlas Park was there way before any crisis with the economy. Do your homework. Damon turned down a ton of business from the start. I don't like or dislike him. But the fact remains that he did a poor job. Being good hearted has nothing to do with business and it shows.
Deerpark opened during the economy crisis and yet it opened at full capacity with high end stores at higher rents.
Good hearted or not the right thing to do was to not have him run The Shops at Atlas Park. I do agree that the name calling is immature and uncalled for. "
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sad wrote on Jan 22, 2009 4:26 PM: