It seemed like a nice fit on paper. In addition to more room for the association’s
offices and board room, they would conceivably take over the operation of the Spear Center
too. A Town Center fitness facility was even envisioned
for the ground floor.
CA had other ideas. They’ve decided that it is time to be
owners of their own Town
Center offices instead of
continuing as renters. The problem is that there are few if any good opportunities
to own or build in Town
Center . Most of the prime
land for development in the core is owned by either General Growth Properties or
Howard Hughes and neither of them is selling. In fact, Howard Hughes could conceivably
be considered a buyer if the right opportunity presented itself, perhaps the
same opportunity that CA is looking for.
As CA headed off in a different direction, Howard Hughes
moved on. They still liked the idea of a fitness club in the lakefront
building. It would serve the residents of the 800 plus new housing units they are developing
around the Mall. If CA wasn’t interested, perhaps LA Fitness, Lifetime or some
other national chain could be convinced to come there.
Is that a missed opportunity for CA?
At least one current CA board
member seems to think so. In this post today on HoCo Rising, Tom Coale suggests
that Columbia
is on the “precipice of big change” centered around this development opportunity.
“If Howard Hughes finds a financially beneficial long-term
agreement with Bally's, Lifetime Fitness, or Gold's Gym, the Columbia
Association is in serious trouble. That's not intended to simplify this
$60 million organization into a gym membership, but CA holds a privileged
position in Columbia ,
mostly unencumbered by any significant competition. This allows for
programs like the low-income discount and capital improvements that are not
predicted to turn a positive return. I often wonder how much the dynamic
would change if we lost that privileged position.”
I can understand CA wanting to own their headquarters. At
the same time, the availability of this iconic Columbia building at the same time the
association is in the market is incredibly fortuitous and an opportunity that
should not be so easily dismissed.
It would be good for Howard Hughes too. If the Columbia
Association is up to challenge it could be a powerful marketing angle in luring
prospective residents and businesses to Columbia ’s
“downtown.”
As far as I know, it may already be too late. I hope not.