This city is dusting itself off again from the loss of another major business, this time the corporate headquarters for Sports Authority.
The Lauderdale Lakes-based sporting goods company that began in 1987 announced last week it would merge with Colorado-based Gart Sports Co. and relocate headquarters from the Lakes Mall to the Denver area.
The departure of Sports Authority, with its 600 white-collar jobs, is happening when city officials are trying to bring new economic life to their business districts.
“Without a question, it’s a blow to us and it causes us great concern,” said the city’s Community Development Director Gary Rogers. “But it’s not going to put us to our knees.”
The corporate offices in Lauderdale Lakes, at the town’s crossroads of Oakland Park Boulevard and State Road 7, will remain open until a transition to Colorado can be completed some time in the fall.
The city’s pending loss is just the latest blow to the city’s economic health. During the past few months, Lauderdale Lakes has lost the Island Grill restaurant and Xtra Valu Supermarket. Both lasted only about a year in business.
And Big Lots, which shares the Lakes Mall with Sports Authority, will close this month. Big Lots corporate officials have declined to talk about their pending departure, but a sign posted on the Lakes Mall door reads: “Going out of business.”
Store manager Frankie Soto said the lease has expired for the large discount store, but he didnt know whether there were any attempts to keep the business in Lauderdale Lakes.
The city has made a concerted effort to help businesses. Island Grill, a Jamaica-based restaurant chain, received a $125,000 city-backed grant. Xtra Valu Supermarket was given a $100,000 city-backed grant obtained through Broward County. The owner said the business did not make enough money and shut down the city’s only supermarket in August.
Rogers and authorities with The Broward Alliance, the county’s chamber of commerce, both say it’s too early to tell the full effect of losing the Sports Authority’s headquarters.
They also both agree the departure of so many employees could be significant.
“It’s going to be definitely a negative here,” said Brenda Arango, owner of the nearby Cuban restaurant Calle Ocho. Her restaurant has been around for 10 years. She’s going to feel the sting of losing some of her customers and will miss their familiar faces.
“They are a big crowd. Theyve been around for a long time,” said Arango, who added that they make up a “big percentage of her lunchtime crowd.” She said she serves at least 10 to 15 Sports Authority employees every day.
Norm Taylor, director of Broward County’s Office of Economic Development, said county officials will work with Sports Authority employees and offer support services to those being let go.
City officials are still unclear whether the company’s retail store that shares a piece of the mall will also leave.
Last week, sales manager Lorraine Longpre said the store, with about 40 employees, would remain open. “My staff feels comfortable. They still will have their jobs,” she said. However, Mark Iskander, spokesman for Sports Authority, on Thursday said no decision had been made regarding the closing of any of their retail stores.
Meanwhile, the city is looking for other companies to come to town.
The St. Croix project, a seven-building mixture of 246 apartments, 16,000 square feet of commercial space and a recreational area, is planned for the north end of the Lakes Mall property. Developers started clearing the land for the $23 million project at the end of last year. Once they break ground, the project should take roughly 14 months to complete.
Lauderdale Lakes also has Florida Studios Inc., the 2-year-old movie and television production studio. Studio operators recently announced their sound stages would be used for a feature film produced and directed by actor Edward James Olmos. A McDonald’s commercial featuring tennis stars Venus and Serena Williams is also planned to be shot at the studio, a company official said.
Lauderdale Lakes Vice Mayor David Shomers said while he’s saddened by the departure of Sports Authority, it doesnt reflect badly on the city.
“It’s more indicative of the general state of the economy,” he said.
