Big plans
Whole Foods, 270 apartments could be coming to Durango Mall parcel

After many years of lying dormant, life could be coming to the black hole on the south end of town known as the Durango Mall. However, not everyone is on board with plans for the 20-acre site, which could include up to 270 new residential units as well as a “national organic food market” believed to be none other than Whole Foods.

The proposed project was revealed at a City of Durango Community Development Commission study session Thurs., Dec. 4. The proposal was submitted by Kensington Development Partners, a real estate development firm with offices in Denver and Oak Brook, Ill. Although the name of the national grocery chain has yet to be confirmed, Whole Foods is an anchor tenant for similar Kensington mixed-use developments in Avon and Buffalo Grove, Ill. 

Under the proposal, Kensington would purchase the mall property, leaving the north end of the mall, which currently houses tenants with long-term leases, including TJ Maxx, Ross and Old Navy, intact. The south end of the mall, formerly home to JCPenney and others, will be demolished. In its place, a mixed-use project would be built, including the aforementioned 25,000-square-foot organic grocery store and 230-270 “much-needed” residential units in three- to four-story buildings. The project also proposes retaining the existing Boot Barn while developing additional retail sites totaling approximately 20,000 square feet across multiple out lots.  

“The proposal re-envisions the existing development into an active neighborhood with options for successful retail development and rental apartments,” the Kensington proposal reads.

Originally built in the early 1980s, the Durango Mall property is currently owned by Richard Rathbun, of Danville, Calif., who operates under Durango Mall LLC and Out Landish LLC. The two entities were registered with the Colorado Secretary of State in 1995 and 2006, respectively.

The site is zoned “commercial regional,” however, Kensington is requesting a rezoning to “planned development,” which would allow for mixed uses, including a variety of retail and housing.

“Each of these elements would come together to create a high-quality, cohesive development that takes advantage of natural features adjacent to, and throughout, the area,” Kensington wrote.

Although the plan is still very much in the preliminary stages, it is already raising concerns among community members and local business owners. At a Dec. 8 virtual meeting of the City’s advisory Urban Renewal Authority board, a handful of people spoke in opposition to the development. 

Lauren Czaplicki, a local business owner and Durango Natural Foods Co-op board member, said many small local businesses already operate on a razor-thin margin, and a new Whole Foods and accompanying commercial center will only increase this pressure.

“This proposal, informal as it may be, risks pulling customer activity out of established districts and into a subsidized commercial center, ultimately weakening the local economy rather than strengthening it,” she said.

Others at the meeting addressed the fact that Whole Foods – which is now owned by Amazon and multi-bajillionaire Jeff Bezos – would compete unfairly with local businesses, including the town’s three existing natural food stores. 

“I object to having a big-box grocery store such as Whole Foods, because I don’t believe they will plow anything back into Durango,” said Karen Zink, co-owner of the Purple Cliffs at Escalante development near Home Depot, which houses her family’s Sunnyside Farms Market. Over the years, she and her husband, Jerry, and daughter, Holly, have worked hard to funnel money back into the city through their businesses, she said. “I object to Jeff Bezos and Amazon getting a tax break to come in here and theoretically put the rest of us out of business – or certainly at risk,” she said. “I am also concerned for all of our local agriculturalists who sell through those local stores.”

Rachel Landis, executive director of the Good Food Collective, also spoke at the meeting, citing a recent study by her group that showed small food suppliers across the region could face closure within a month if they lose even just 5% of their revenue. “These are essential assets to a community, and Whole Foods is not a substitute, and I’m quite concerned about what it would do across the region,” she said.

Joe Zwiebach, general manager of Durango Natural Foods, also addressed the topic in the co-op’s recent newsletter. While he admitted he has shopped at Whole Foods in the past, he noted the once-funky chain that gained a cult-like popularity has changed since the Amazon takeover. He noted Amazon has announced plans to integrate its products into Whole Foods with its “One Grocery” concept. In a Chicago store, for example, there is a 3,700-square-foot section dedicated to non-Whole Foods products.

“Just for comparison sake – our co-op has 1,700 sq ft of floor space,” he wrote. “I’m not saying big is bad. But in the case of Durango, I believe it detracts from our small town appeal – especially when we have two local stores and one Colorado-based store that serves the same market.” He was referring to Natural Grocers and Nature’s Oasis, which is a mile from the proposed development. (The Telegraph reached out to Nature’s Oasis owners Jeff and Sherri Watson for a comment but did not hear back by press time.)

Zwiebach said while a Whole Foods will certainly impact the co-op, he is not overly concerned for the survival of the neighborhood store, which has a strong local clientele. “I’ve competed with Whole Foods in other locations, and we have always found our niche,” he wrote.

However, he did express concern over the bigger picture, for Durango in particular.

“Amazon (and Bezos) are only interested in making money. They do not care about the towns they are in, the legacy customers of the businesses they buy or their employees,” he wrote. “It will affect us of course, but the real concern is how it will affect Durango, which may be becoming indistinguishable from other towns across the country, losing its uniqueness and charm. I think that would be sad.”

Kensington still needs to submit a preliminary and final plan to the city planning/community development department before it goes to City Council for final approval. The process will include public hearings and opportunities for residents to weigh in. Stay up to date by signing up for the City’s email newsletter at: www.durangoco.gov/list.aspx.