March 29, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

UMPI students to study effects of Aroostook mall on local retailers

PRESQUE ISLE — The expected opening of the Aroostook Centre mall in August 1992 and its effects on local retailers are among issues being examined by a group of marketing students at the University of Maine at Presque Isle.

According to John Feeney, vice president of CIGNA Investments Inc. of Hartford, Conn., the construction of the mall “should have a generally good influence on the whole area and other businesses in the area by attracting additional retail (outlets).”

CIGNA will provide construction and permanent financing for the Aroostook Centre Project, according to Oneida Ontario Co. Inc. of Clay, N.Y., mall project developers.

The local survey of retailers will be conducted by junior and senior business students participating in an UMPI marketing management class instructed by Robert Murray.

In recent presentations to community organizations, Murray has described the marketing class project as a compilation of standard research questions being “confidentially administered” to a representative sample of retailers.

The results of the report will be presented in aggregate form to the public at 9:45 a.m. Tuesday, Dec. 4, in room 210 of Pullen Hall at UMPI. The Aroostook Business Barometer, a bimonthly publication of the UMPI office of institutional and small business research, will publish the report’s findings.

According to Murray, surveying and interviewing of 46 Presque Isle retailers started in mid-October. The university class was divided into four groups.

Murray said questions being addressed are: Have you thought about the impact of the mall on your business? Do you think the impact is (will be) positive or negative? And have you thought about changing your products, prices or method of advertising as a result of the expected mall?

Feeney described CIGNA as the country’s sixth largest life insurance company, with about $60 billion in assets. The Connecticut investment firm has ownership and interest in 24 regional malls in the United States, and total loans of about $5 billion in regional malls.

Among its investments, CIGNA owns 85 percent of the Maine Mall in South Portland.

Based on his experience, Feeney said, “There could be a short-term adverse affect (from the Presque Isle mall) on downtown tenants. But in the long run, the mall will have a positive influence by bringing people and trade to the area. It does create jobs and it is a substantial producer of revenues for the city and the state through taxes.”

The finance official called the Presque Isle area a “key location for a regional mall.”

“We do own a number of interests in new malls and everything has been successful,” said Feeney. “We had analyzed the (the Presque Isle area’s) market potential and we think there is a very good potential for a mall in that area. The mall will serve a large geographical area, with enough people in the area having the income level needed to support it.”

CIGNA officials said basic terms and conditions of its commitment is for 100 percent of the Aroostook Centre project. Approval of financing by CIGNA should occur by late November, according to Feeney. The lender is awaiting receipt of signed agreements from the mall’s four major department stores, said Feeney.


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