11142009 Safavieh to Oppose Proposed High Point Market District

SAFAVIEH  TO CONTEST HIGH POINT
MARKET DISTRICT PROPOSAL

 PORT WASHINGTON, NY —Safavieh said it plans to contest the boundary of a proposed Overlay Plan in High Point, NC that would limit market development to a specified Market District within the city. As proposed, the plan would exclude development of property that Safavieh owns near the Market Square campus.

At a Planning and Zoning Commission hearing scheduled for Monday, Nov 16, Safavieh will join other manufacturers and building owners voicing opposition to the High Point Market District Overlay Plan.

Several years ago, Safavieh acquired property at the intersection of Lindsay St. and Kivett Drive,  with the intention of constructing state of the art showroom space, according to Arash Yaraghi, a company principal.

 â€œWe retained a local architect and worked with city officials to meet building requirements in the design of a beautiful, high tech building to be named the High Point Pavilion," said Yaraghi.

"The building was budgeted at $5 million, and was to be used for our own showroom and to attract other top marketers to the High Point. Due to the current financial crisis, construction plans were put on hold, but Safavieh allowed the use of the property to provide convenient parking for visitors to the Market,” he explained.

At a hearing on Oct.27, the High Point Planning and Zoning Commission voted seven to zero to proceed with the overlay district. "This shows that the hearing was merely a formality and that the decision had been made without consideration for the future health and viability of the industry or of the furniture showrooms adversely affected," noted Yaraghi.

“At last month’s meeting, commission members presented an argument that would be great—if they were arguing against an overlay district in High Point,” Yaraghi said. “The commission says it is doing this to encourage growth of businesses in the downtown area that are not affiliated with the furniture industry.  If this is truly the objective, why are they not offering incentives for new businesses to come to High Point? And why would they be discouraging development such as Safavieh has planned?"

“The result of this overlay district will be exactly the opposite: creating the district will result in more furniture showrooms downtown—not less," he added. "Conversely, the properties outside this district will be abandoned since the city is not offering any incentives to do anything with them.”

“With this plan, control of showroom space in High Point will fall into the hands of those in the district, and ultimately make showroom space more expensive,” Yaraghi continued.

“The danger to the city’s future is that higher showroom costs in High Point will make Las Vegas more attractive as an international furniture market. This Overlay District may benefit the showroom owners in the district in the short run, but it is a bad idea in the long run,” he said.

Yaraghi pointed to examples of cities like Chicago and San Francisco which once had vital furniture markets that have now virtually disappeared. “High Point is blessed with a special diversity of space and development which makes it work. It seems that is being taken away now,” he added.

"Safavieh has been a strong supporter of the High Point Market for over 20 years and has made substantial financial commitments to help insure the future of the Market in the face of extensive competition from market centers in other areas of the country," said Yaraghi.

 â€œThis is not the time to diminish the attraction and viability of High Point Market,” he continued. “With Las Vegas desperately fighting to maintain its convention and meeting business, they are competing aggressively with High Point for exhibitors, many of whom already face the need to make hard choices in deciding where to display their merchandise and in what shows to participate. Restricting available space can only result in higher costs to exhibitors at a time when cost cutting is the objective of most businesses,” he said.

Safavieh maintains year-round space at Historic Market Square.  

11.14.09