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A NYSE 33.31 at 563512


A S&P 500 7.65 at 919.02

30.67 at 8,515.66

14.80 at 1.46616

Midway: Banloupt airline settlesa dismte about vacation bend&.


HealthSouth: Company's former auditor

dffem some insight into how huge fraud couldbave gooe mdeteded SO long. PAGE 3D

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Jerry Parker breaks dowe the facing along the escalators inside North Hills Mail.The old enclosed mail will be torn down and replaced by a mixed-use, streetscape design.




Enter bulldozer;stage I& as curtainfoNs on North Hills BY-S THoMPSDN%TR



RALEIGH WBa Kane re manbers the hot topic at a din. ner par@ her parents threw backinthemi&l960s:thenew mall being built on Six Forks andLassiter MiU roads. North HiLbManwoutd never take off, she remembers everyone sapine. It wassimohrtoofar out of .tok. On Wednesday, shestoodhg herhusband,Ralei&dweloper and mall owner John Kane. watchiog as a buIldozer tore into the southern end of the mall - one of the South's oldest - demolishing it to make wav for what h e ' s eammv de&ibes as a "midto& d& trice for shopping, dining, wor!&gand living: It will be the thud life for the 4ayeardd shoppingcenter that W e d as a small strip center anchored by a Win$ M e . The new development is sound-breakinnfor theTri. aigle, combining discount shoppin#, a movie theater. a hotel boutipues, offices, con. dominim and highad dininc to create a hleh-densitv

"When NorthHills oaentd a s h o ~ ~ i center. nz it was frlendly~fo~etitioi." said Smedes York, whose father built Cameron Village in Raleigh as the South's iirst shopp'utgcenter in 1949.%t when itwas enclosed into a mall in '67, it was more like SEE NORTH HILLS,PAGE BD



ping center industry," said I& Anthony, president of Raleigh's Anthony Alleoton Commerdal Real Bstate. North IfiIls has a historg, of usheringin ehange+altermg the Triangle's shopwg land"-r-

W h e n it was converted from a strip center into a mall in 1967, it was the Grst endosed mallbetween Washington and Atlanta. The modern mall posed an immediate threat to retailers in the area's leadine

Paul Moldenhauer, a demolltlon worker, hoses down debris to mininlize dust on the opening day of demolltlon a t North Hills hlall. The job will rake several montns.

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Business Key events 1963: North Hills Shopping Center opens. 1967: North Hills becomes an enclosed mall. In its heyday, it draws shoppersfromall over EasternNorth Carolina. MAY 29,1972:On Memorial Day, 11people are shot, four fataily, by a gunman in the North Hills parking lot The shooter, a 22-year-old high school janitor, then kills himself. AUGUST 1972:Crabtree Valley Mall opens. DECEMBER 1979:Several stores do extensive remodeling during the year, and five new stores open. JUNE 1980: Three North Hills stores begin regular Sunday afternoon shopping hours. AUGUST 1980: Developer Ed Richardssells the mail to KLM Royal Dutch Airlines pension fund. FEBRUARY 1983:Now 20, North Hills begins a major renovation to atJohn Kane, a locai developer and the owner of North Hills Mall, was there with his wife, Wliia, tract younger, richer customers, to watch the demolition begin. H i s planned project should be completed next fall. OCTOBER 1984:North Hills celSTAFF PHOTO BY HARRY LYNCH ebrates its "grand reopening" after an 18-month, $3 million renovation members the plastic pools tilled no deals are signed yet, said that features eight new stores. with live fish that management StephenBrown,directorofleas- 1991: North Hills gets another CONTINUED FROM PAGE i~ . used to put in the middle of the d a t KaneRedty. About %perfacelift in response to the opening mall. "People would come from cent of the project's space is spo- of crossroads and the expansion of opened nearby five years later all around and fish,"she said. Tt ken for. "Really, it speaks to the cary T~~~~ center, quality of the project. Despite with more stores and more space, was real homey." 1994:plans for ~ ~ i eclipsing North HiUs as king of Piquet Bailey remembers get- the difflcnlt economic times, we Centeroff Capital Boulevard are an. the malls until last year, when ting her first makeover at Mon- have had tremendous interest in nounced, North Hills Wallis for sale


two other mega-malls opened. North HiUs never regained its status, in part because of faifweather owners over the years that made renovation promises they couldn't keep. But the memories are still strong for many Raleigh residentswho grewup hanang out at the mall. Willa Kane remembered losing her dental retainer four times after eating at Scotty's, famous for its hot dogs. The last time, her frustrated father made her dig through the trash to retrieve it.' Charlotte Ellis, who owns the Cary marketing consulting comuanv Ellis & Others, remembers iooihgat an art show in the middie of the mall when she was in collegeand wondering whosejob it was to put together mall events. Her company now focuses in part on shopping-center marketing. Ruth Green, whose Little Art Gallery was a fixture at North Hills from 1968until it moved to Cameron Village last year, re-

taldo's, a small mall department store. Now she owns a make-up and beauty products store called Luxe across from the mall at The Lassiter at North Hills, the first phaseofthearea'sredevdopment John Kane, who bought North HiUs in 2000, hopes to create a place for more mkmories. The $200 million ~roiecthasalready pulled in dis'cointer Target, which will be the Brst store to be built on the site, since it will take the ground-level space around the back side of the new North Hills. A 14screen movie theater run by Marquee Ciemas will sit on top of it, snrrounded bv an oven-air main street with collection of national chain stores and locallv owned boutiques and restaurants, ineluding the Charlotte-based restaurant Firebirds Rocky Mountain Grill. Pulse ~ t h l e t i cClub, which Kane owns, will take about 35,000 square feet. A day spa and a hotel also are in the works. Other tenants are coming, but

the project," he said. Brown said shoppers can expect to see more of what has already been created at The Lassiter. Once called North Hills Plaza, in recent years under Kane's ownership the agingshop oiug center has been renovated andleased to a nlix of new tenants. including locallv owned stor& such as 6 e wom6n9sclothier Tyler House and the shoe store Plush, and national chains such as Starbucks and French shoe retailer Mephisto. The guts of the mall have already been ripped out, mostly to rid the site of asbestos. J.C. Pennev is the onlv mail retailer to stay open throughout the renovation. The ~roiectshould be completed by-fali 2004. "It's fun to finally be executing something we've been working on for so long," Kane said. "It's good to get started." Staff writer Samantha Smith can be reached at 829-4563 or

DECEMBER lgg5: details Of a threeyear. Mall be - $50 milli0nexpansion ~Ietedby the end of 1998. 1997:Expansionis delayed until 1998. 1998:Nags bead?roperties purr h a w tne mall but ~-~nas no . firm ~ re. ~ development plans. 2000: Nags Head Properties seeks to sell North Hills Mall. DECEMBER 2000: Developer John Kane buys North Hills Mall. He already owns North Hills Plaza across Lassiter Mill Road from the mall. MARCH 2001: Dillard's announces it will move toTriangleTown Center when it opens In 2002 The North Hills store will close. JULY 2002: Developer John Kanesubmits plansfor North Hilb to Raleigh City Council. NOVEMBER 2002:The city council unanimouslyapproves Kane's plan. ~










Demolition on North Hills Mall begins  
Demolition on North Hills Mall begins  

News & Observer, 4/24/2003