BILTMORE AREA PARTNERSHIP LUNCHEON
TUESDAY, October 26, 2010

SPEAKER: KAREN LITTON, SCMD, CSM, Senior Manager, Property Management at Biltmore Fashion Park
KATE BIRCHLER, Senior Manager Marketing at Biltmore Fashion Park and also at Scottsdale Fashion Square.
SUBJECT: BILTMORE FASHION PARK UPDATE

Today we want to share some of the highlights, stores that have opened and will be opening, marketing/event news, and an update on operations, community support, and tourism program. There has been a lot of really great changes at the Biltmore Fashion Park.

Retailers: Since we have last meet, we have become quite the dining destination. We have 9 restaurants and eateries at the Biltmore Fashion Park. Stingray Sushi joined us at the end of last year at the very east end of the property facing the parking lot. That lot will eventually become a high rise of mixed use, at some point in the future, and we do have entitlement to go up to 155 feet. But for now we have added a102 parking spots. They have a really fun Happy Hour. We have brought back Haagen Dazs, and they have added KC Fine Belgian Chocolates and it is located right adjacent to Macy's and they have a nice little patio area as well. Little Artika is a really cute children's store. They have everything from apparel to, décor, furnishings and accessories. If you have to buy something for a baby shower for a friend that has everything then this is the place for you. They opened October 15th and we are thrilled to have them and we definitely have a need for a cute children's store. This compliments This Little Piggy Wears Cotton which we already have here. We have Seasons 52 which officially opened on October 25. They are a sister concept to The Capital Grille. There is a wine list of over 100 wines and 65 of them by the glass. Food is American Grill and a little bit of a lighter fare as they use natural cooking methods. Everything on the menu is under 435 calories. They have a Chef's table, patio, Happy Hour, piano player, private rooms. Red Door Spa and Salon has been at the Biltmore for 25 years and is now relocating to their new space which is next door to The Capital Grille. You walk in on the lower level which faces Camelback Rd., and go upstairs where all the rooms are located. They will be doing a lot of new things at the spa and they will be open for the Holiday Season. We will be getting a new Mexican grille called Rojo in the spring of 2011. This will be going in on the west side of the center and near Zinburger and Apple. They will have patio dining as well. We are continuing to be quite the dining destination here at the center.

Events: Movies In The Park has become quite an institution and is synonymous with Biltmore Fashion Park these days. We do them in the spring and the fall. Now we are in an 11 week series. Starts at 7:30 PM, under the stars, and open to the public-bring your blankets, chairs, your dog, whom ever you would like and park yourself on the lawn. We have upwards from 500 to 700 people per week and some come as early as 5:30 to stake their place. Lot of our restaurants do take out so you can dine on the lawn. This session goes through December 17 and we will be showing holiday movies. Our classic poinsettia tree will be going up around Thanksgiving. We will be having complimentary photos by the tree, and there will be cookies, hot chocolate, eggnog which will be part of Movies In The Park. Then we will come back in the spring during March and April. We have also started a new program this fall called Art In The Park. On the first Friday of the month we have a strolling art walk, entertainment, special offers within the stores. This is from 5 to 8 pm on first Friday of the month. There are about 15 stores participating and you can go in and shop, many of them will have special offers and some will have wine or champagne, snacks. Sometimes they will have trunk shows, entertainment and then there is a piece of art displayed as we are in partnership with a number of galleries. Again another way to spend a Friday night and it is all free. Enjoy Art In The Park and then Movies In The Park. Then we get into the Holiday season. We are gearing up for all of our holiday activities every Friday. We are going to be having free giveaways on Fridays, events that incorporate our community and charity partners to give back to them. There will be a lot going on from Black Friday until December 17. If you want more information, I encourage you to go onto our Facebook and Tweeter. We talk about all the things that are happening within the shopping center.

Operations: Our reason for doing what we call control parking was that we had a situation that became very obvious to me, when I first got here that we had a very large number of office workers parking on our south side and walking across the street. What occurred then was that our customers would drive in and out and look for someone who had their keys out and followed them to their car to get a parking space. We seriously had over 80 office workers that we would approach on a daily basis. We tried stanchioning that off and people moved the stanchions, we had security out there and that didn't seem to help. We came up with a program where the first two hours are free anytime you purchase anything. It is a little yellow coin that has a microchip in it and can tell when you came in and when you left. It has actually been very successful. There are still customers who say, I can't believe that the Biltmore Fashion Park has controlled parking, and I tell them there are other options such as the north side where it is all free. It has been about a year and I am getting customers and retailers who stop me and say thank you. Eventually, we are going to go controlled parking on the side by Embassy Suites. Probably about the first of the year, but we are not sure yet. We have put the infrastructure in for controlled parking there. We did it for our customers so they would have places to park. When you look at the other 3 corners they were already doing that.

Community Support: We work with a lot of organizations, such as Fresh Start Women's Foundation, which we support from a Westcor standpoint as well as a shopping center standpoint, the Arizona Humane Society and we have had for about a year a Pet Boutique and they have a pet adoption center here. They are going to be doing an event on Nov. 10 called Doggie Bag deal with some of our participating restaurants and eateries for the Humane Society. We are involved with the T Gen group and what an amazing organization that is. At the end of the day we are here to be a good community partner.

Tourism: This is a very important part of our overall program here at the Biltmore as 26% of our annual business is visitor traffic. It is the number one activity when visitors travel and dining is number 2. We are members of the Phoenix and Scottsdale Convention and Visitors Bureaus. We are very proactive towards that program and that is from providing a coupon book which is our shopping and dining awards for visitors or groups coming in. We work very closely with the hotels and resorts, where we do shopping packages, or we do partnerships, or programs, or shuttle services. We put the hotels and resorts on our websites as being a preferred hotel. We are always being asked "I'm coming to this area, where should I stay?" We do a lot with our tourism groups and can set up special events for them.

Q&A:

1) Did the restaurants seek you out or did you seek out the restaurants?
We haven't really added that many more restaurants, but we have spread them out throughout the center as opposed to having them all at one end. They all want to be facing Camelback. We are now going to begin reevaluating the fashion stores because we really feel that we have honed in on the food and dinning assortment in the center. Restaurants were still interested in coming to the Biltmore Fashion Park, even during the down economy. The consumer was backing away from making fashion purchases, but they were still going out to eat

2) Will any of the future parking devices have any modification where you can pay cash as opposed to a credit card?
That is something we can look at. You can go to any Pay On Foot and pay cash.

3) Parking a money maker?
That was never our prime objective, but we are going to have to make it pay long term.

4) What has your turn over been and has it gotten worse or better?
It is amazing our occupancy got so much better when we tore down the structure. Those buildings were not attractive and we were not putting any real money into them — just maintaining them. Our occupancy is the highest it has ever been now. We only have a couple of spaces available and they are raw spaces, which means that we wouldn't be able to lease them out even seasonally because they would require construction.

5) What is going in to the Red Door space?
There are several different options that leasing is working on. We may be combing other stores for a fashion player Most likely a fashion player is what we are talking to right now