Beltway Plaza continues to make a recovery from the pandemic, while facing its ongoing challenges. At the Greenbelt City Council worksession on September 7, Mayor Emmett Jordan said that Beltway Plaza, which began phased construction 57 years ago, is the city’s “strongest corporate partner.” Marc “Kap” Kapistan, from Quantum Companies, the entity that handles managing and leasing for the Plaza, was on hand to share an update on the site’s economic health, infrastructure and security issues, and where the process of its redevelopment into a mixed residential and commercial facility now stands.
Kapistan is also tasked with community and tenant relations at Beltway Plaza on behalf of Quantum (which came on board in 1990). The Plaza itself has been owned by Greenbelt Mall Limited Partnership since 1996.
Kapistan reported that the Plaza has a number of new tenants, including Third Space Lounge, owned by the 2021 Outstanding Citizen Shaymar Higgs, which provides free art to the community. Higgs and the Beltway Plaza security team have also collaborated to create a gathering space for teens, furnished with a stereo system, ping pong tables and games. Other new tenants include Charley’s Cheesesteaks and Wings, La Curva Restaurant and EZ Kabob. Meanwhile, the vacancy rate is at 5 percent. Some of the former stores whose vacant spaces are now being marketed are Lovin’ Time, Books-a-Million, Kid’s Foot Locker and Payless Shoesource.
Kapistan explained the process by which prospective tenants are chosen and their operating costs and rents are devised. Sales figures gleaned from past tenants of similar types, like jewelry stores, are reviewed and future anticipated sales are factored together. Kapistan is very committed to only bringing tenants in who can provide something unique that will not present significant competition to the existing tenants. Over time, operating costs can be adjusted if the sales parameters do not meet the initial predicted levels. Kapistan indicated that operating and utility costs are higher in an enclosed mall framework.
Tenant Assistance
The pandemic presented difficult financial challenges to many Beltway Plaza tenants. Kapistan stated that the period of mandated closure early in the pandemic created a situation where businesses were basically “starting over.” They worked closely with their tenants, at times lowering costs to match receipts or deferring rent payments. In some cases, balances were written off at lease renewal time, with no lawsuits to recoup funds. Quantum also endeavored to encourage fledgling businesses with capital loans, which it sometimes offered if there was confidence in the business’s ability to thrive. All of these loans have since been repaid.
Kapistan said that, during the pandemic, major retailers like Target made initial miscalculations over inventory needs, resulting in an excess amount. In order to reduce their merchandise excess, severe discounts were at times instituted, which Kapistan said has had a negative effect on the mall’s smaller tenants who can’t match these prices. Kapistan strongly encouraged residents “to buy locally” in order to support the city’s businesses. Online shopping has proved a huge detriment to shopping at Beltway Plaza. He was sensitive to the plight of many in these times, faced with the high cost of living and the lack of discretionary income.
Kapistan was glad to hear that the city has brought on a new economic development coordinator to assist in Beltway Plaza’s recovery. Councilmember Judith Davis extolled the past work of Charise Liggins, whose efforts in this area have laid down a strong foundation. Kapistan praised the job that Assistant City Manager Debi Sandlin has done in Liggins’ absence. A survey, issued through the Greenbelt Business Alliance, indicated that the city needs to be “more business friendly.” The Greenbelt Business Alliance, of which Kapistan (along with 13 other businesses) is a part, is off to a strong start, having now been incorporated and federally identified. Resident and member Michael Hartman, credited Kapistan with being personally responsible for much of this.
Events
Council thanked Kapistan for the many community events hosted by Beltway Plaza, such as National Night Out, Spring Skate Jam and a Halloween program in conjunction with Franklin Park. Kapistan singled out the Rotary Club for their numerous charitable efforts, like feeding the homeless, providing used bikes to Jamaica and giving supplies to Springhill Lake Elementary School students.
Kapistan said that, in regard to security, the real issue lies outside the mall from a small, familiar group of what he called “knuckleheads,” who loiter and cause nuisance. He hoped to get some significant prosecutions, working with the Greenbelt Police Department and the State’s Attorney’s Office, to effectively discourage this behavior. The upper parking structure is also now in an active construction phase to address safety and provide the parking spaces that tenants are entitled to.
Beltway Plaza is in discussions with WSSC concerning the remediation of the main water pipe to the mall, which ruptured last December, causing days of closing. Kapistan reported that WSSC says they do not have the funds to replace it at this time.
Development
In the next 60 days, ground will likely be broken for redevelopment, according to Kapistan. The first structure in this phase will be a 315-unit residential building, one of three planned buildings in this initial phase. Kapistan said that Franklin Park ownership has initiated legal action against moving forward at several stages, all of which were unsuccessful. Although he has a good relationship with their management, the ownership, according to Kapistan, views this addition of new housing as a threat to their own leasing.
A 93-room hotel is part of this first phase, yet an inquiry has been put out to assess the market need. Davis advised consulting city hotels, which have suffered during the pandemic, to gather feedback on its necessity.
The idea of a circulator shuttle that would service all three parts of the city is still being considered, with several stakeholders, including Beltway Plaza, onboard. A main issue is how it will be funded, perhaps through stakeholder funds.
Jordan asked Kapistan if any tenants could provide letters of support for the possible relocation of the FBI building to Greenbelt. The deadline is Monday, October 3. Kapistan was “happy to help.”