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Hallmark gives Crown Center royal treatment

By Debra Hazel

To say that the renovation of Crown Center in Kansas City is colorful would not only be a bad pun, but an understatement too. Because the remaking of the mixed-use complex near the city's downtown will showcase not only Hallmark, but the growth of Kansas City, Mo., itself.

The $60 million renovation of the 85-acre office, retail, residential and hotel complex will be capped by the opening of a Crayola Cafe and Store that will sell the world-famous crayons as well as food and drink.

The atrium at Crown Center will feature two towers representing the Hallmark and Crayola stores.

Not coincidentally, locally based Hallmark Corp., which built and still owns Crown Center, is the parent corporation of Crayola manufacturer Binney & Smith.

The redevelopment of the entire complex, including the retail area, is part of Hallmark's "Vision 2000" plan to manage the growth of the site.

Construction began in 1968 as part of an urban redevelopment effort. The 400,000-square-foot retail center opened in 1973.

"Hallmark built in what was a distressed area near downtown. It created a corporate campus as part of a complex that includes plant space, hotels, the shopping center, other offices and residential. Now we're taking it to the next level," said Zahaid Nana, director of marketing for Crown Center Redevelopment Corp., the Hallmark subsidiary that is overseeing the renovation.

Existing attractions include the Hallmark Visitors Center, Kaleidoscope -- an art workshop for children, The Coterie Theatre, American Heartland Theatre and Crown Center Ice Terrace.

Some 42 of the center's 85 acres have been developed. To determine needs, the center conducted an extensive survey of the community to determine what should go into the retail portion.

Construction will begin in June on the extension of the retail center's Grand Boulevard entrance, which will be flanked by two fountains. In addition, two 28-foot towers will be constructed in the atrium: a tower marking the Crayola store, and a second tower featuring the products of Hallmark cards. All are scheduled for a November completion.

The center is anchored by Halls Department Store, the Science City Museum and a six-screen theater.

New restaurants joining the center include local mainstay Fritz's Union Station Restaurant, which delivers its signature hamburgers by electric trains, and Morton's of Chicago.

The first-ever Crayola Cafe and Store will feature Crayola merchandise, themed decor, a crayon-making demonstration area and a moderately priced family restaurant.

"Crayola is one of the most recognized brands in the United States. This will be the only one of this kind of store," said Rick Nash, Crown Center's director of leasing.

He noted that Crayola also has an 8,000-square-foot demonstration store at Binney & Smith's headquarters in Easton, Pa.

In addition, the center's food court has been totally restructured, now featuring Einstein Bros. Bagels, Z-TECA Mexican Grill and Leeann Chin Chinese Cuisine.

Unlike other centers in the area, Crown Center is tenanted with more unique specialty stores than regional mall regulars. Continuing to lease to independent retailers will remain a focus of the center, Nana said.

An existing Hallmark LIVE! store will be redesigned, and will feature an expanded merchandise line including Hallmark Hall of Fame videos and gift items as well as cards.

The privately held company would not release specific sales figures for the complex but noted that the overall center is operating above the national average.

Sales at shopping centers in the United States averaged $193.60 per square foot in 1998, according to the National Research Bureau annual Shopping Center Census.

Other elements of the center are being expanded and/or upgraded, as well. The Westin and Hyatt Regency Hotels, attached to the mall, have received a $14 million overhaul.

An exhibit hall, opening in December, will be added to an adjacent office building to serve conventioneers at the hotels.

All of this will be designed to appeal to the Kansas City region's 17,000 office workers, an overall trade area of 1.6 million and 14 million-plus tourists annually.

The remerchandising of the overall center is an ongoing project, Nash noted, with no final completion date.

"It's hard to put a specific date on it. This is an evolution," he said, adding that the retail center would be full by Thanksgiving.

The remerchandising comes not a moment too soon, according to one shopping center industry observer.

"You've got to keep pace with development, to give people a reason to go down there," said Thomas K. O'Leary, CSM, associate broker at the Kansas City, Mo.-based brokerage firm Colliers Turley Martin Tucker.

Other parts of the city, including downtown and the Country Club Plaza area, are competing for the same retail dollar, he added. "[Hallmark] realizes they just can't sit there."

After a boom in retail development from 1995 through 1997, last year proved relatively slow, according to Colliers' Commercial Real Estate Report.

After seeing nearly 1.75 million square feet of development annually for the earlier period, the first 11 months of 1998 saw just 709,000 square feet of retail construction contracts for Johnson County, Kansas.

"We started looking at this project three years ago, and saw that it was a perfect complement to what was going on around us, including the groundbreaking of a $50 million renovation of the World War I Memorial within one block of our site. Union Station's renovation also is opening," Nana said.

Keeping up with the growth is just the next step in Hallmark's commitment to its hometown, he added.

"Thirty years ago, Crown Center was a statement we made to the community. And we want to live up to that."