Thursday, January 29, 2009

Colgan: Before/After

Charles Colgan in a February 2008 PPH article about the economic feasibility of Stroudwater Place:
The addition of so much retail space--by comparison, the Maine Mall has 1.2
million square feet of retail space--is a risky venture but mitigated by the
plan to build in phases, said Charles Colgan, a public policy professor at
USM's Muskie School of Public Service and chairman of the state's economic
forecasting committee. The project does have the advantage of a well-located
site in the fastest-growing and wealthiest part of the state he said. "It does
represent a statement of faith in the future of the southern Maine economy," he
said. According to the Maine Real Estate and Development Association, the
state's population and income are not keeping pace with its large amount of
retaildevelopment. But Colgan said the current retail situation won't be an
issue. "You're looking at a whole business cycle or two away from when this
thing would come online," he said.
Colgan in this week's American Journal on the same subject:

Colgan, the Maine economist, echoes that view.
“The retail sector is overbuilt--not as much here, but Maine is not immune from
the problem…I expect that some of the space never again will be used for retail.
It may go to offices.”


“I never want to knock anyone who puts their
own money at risk,” Colgan said. “But that project seemed dubious when it was
announced. It could be one of those projects that never gets built, which now
seems like more than a reasonable chance of happening.”

- John C.L. Morgan

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