Retail Owners Look to Fountains to Provide Intangible Gains (7/7)
Jul 7, 2009 6:04 PM, By Riccardo A. Davis
Cost Benefit Analysis
The interactive water feature at Pearland Town Center in Pearland, Texas, adds to the center's ambiance.
Depending upon the size, complexity and a developer's vision, fountains can be expensive to build. The Bellagio's $43 million fountain sits at the high end of the spectrum (although there are larger facilities). That's not standard for most retail settings, but it's not unusual for the costs of elaborate water features to run in the millions of dollars.
Overall, in 2008 WET had revenues of $65 million. WET's custom works include one project that dwarfs the Bellagio's down to small installations that grace lobbies and even private residences.
Over the past five years it has completed 34 water features in retail environments accounting for 56 percent of its total revenues.
Meanwhile, the expense to maintain fountains is nominal compared to other operating expenditures. Annual costs can range from a few hundred dollars to a few thousand dollars depending upon a water feature's size, complexity and usage which determine the number of cleanings annually, according to Judy Trias, PREIT's vice president of retail marketing. The costs associated with outdoor fountains in open-air centers are not significantly higher, developers say. Water conservation also isn't an issue because the water is recycled and there can be very little evaporation.
Spare Change
What about the coins that get tossed into fountains? Shopping center owners don't tend to pocket that cash. Instead, typically 100 percent of the proceeds are given to local charities. In 2008, more than $50,000 was donated by PREIT to non-profits in the communities where it has shopping centers. That figure was up from the previous year, says Trias. "Even in these recessionary times we're seeing an increase."
Taken to the next level, PREIT actually showcases the fountain at the 1.3-million-square-foot Willow Grove Park in Willow Grove, Pa., Philadelphia-based PREIT every October as the focal point for a breast cancer awareness campaign. The water feature at the center sprays pink water during the month-long campaign, which is a partnership between the nearby Abington Memorial Hospital and PREIT.
The most profitable fountain for Taubman is at the Mall at Short Hills, in Short Hills, N.J. The company collected almost $30,000 in coins at the facility last year—the same amount pulled from the Bellagio's massive fountain. Taubman donates the proceeds will to the United Way-Millburn-Short Hills. Its executive director, Rose Twombly says the funds help the organization support 20 non-profits in the area including Sage Elder Care, New Eyes for the Needy and a children's special needs program called SNEAKERS.
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