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Shopping Centers Today -> December 2007
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WATER SHORTAGES VEX SOUTHEASTERN RETAILERS
The drought in the Southeast dried up business for plant nurseries and other heavily water-dependent entities, and the harm that water restrictions in Georgia and North Carolina could do to retail has yet to be seen.
Georgia Gov. Sonny Perdue called the drought the worst in that state’s history. The situation was particularly dire in metro Atlanta, where Lake Sidney Lanier, the main source of drinking water for nearly 4 million people, was expected to reach hazardous levels by spring of 2008, according to Mark Crisp, an engineer at C.H. Guernsey & Co., an Oklahoma City-based consulting firm. Two other reservoirs farther down the Chattahoochee River, lakes George and West Point, dipped to historic lows too.
“We need to stand back and say, ‘What can we do to build another reservoir?’ ” said Kirk L. Buttle, ICSC’s state director in Georgia and a senior vice president in the Atlanta office of CB Richard Ellis. “Population projections are that Atlanta will add 2 million to 3 million people in the next 15 years. We will have no water.”
The level-four drought emergency meant that homeowners and some businesses in Georgia were prohibited from most types of outdoor water use. In some counties, nurseries and discount retailers had to leave their plant inventories to the mercy of nature. “For a larger retailer that has multiple stores across the state, we’re talking about losses in the six figures,” said John Heavener, president of the Georgia Retail Association.
Even if retailers can manage to keep trees and other plants alive, they face the problem that if consumers are unable to legally water them, they may not buy at all.
At press time Georgia’s drought showed no sign of ending. Forecasts anticipated serious water-supply problems by spring. State and local officials were contemplating restrictions for car washes, factories, restaurants and other water users. “Long term, the issues are much more severe,” said Heavener. “The state is implementing a new water plan, and the business community is concerned that the state water board will be able to make decisions about developments, as well as the allocation, sharing and use of water.”
Those plans could still become hurdles for the state’s developers, who have become accustomed to unbridled growth, said Thomas D. Bell, president and CEO of locally based Cousins Properties, at ICSC’s Southeast Conference in October. Said Bell, “We’re looking at the possibility of having to retrofit a property to reduce water usage by 10 to 15 percent upon sale.”
 | Current Issue November 2008 |