ven though the Chesterfield Valley already contains more than 200 businesses, two different outlet centers may be constructed in the next few years.
The first project that came to light would be a joint venture between Michigan-based Taubman and New Jersey- based OutletPartners LLC, called T-O Ventures LLC.
Karen MacDonald, director of communications at Taubman, said Taubman will be involved by owning, developing and managing the project.
“The center will feature a higher-end outlet merchandise mix in an inviting open-air village setting,” MacDonald said. The second outlet, named Spirit of St. Louis Outlets, would be a development by a collaboration of professionals from Woodmont Outlets, an affiliate of The Woodmont Company of Fort Worth, Texas; EWB Development of Vermont; Adams & Associates Architecture of Mooresville, N.C.; and Chesterfield Blue Valley of St. Louis.
Becca Crews, sophomore, said she is in support of any new outlet center coming to the Valley.
“I think it’s awesome because I love outlet malls,” Crews said.
However, both projects are not in the same stage of development.
The location for Spirit of St. Louis Outlets is already zoned for commercial use but the land T-O Ventures LLC would like to develop is only in for a change of zoning petition from a non-urban district.
“They are asking for the zoning on the land to change to a Planned Commercial District and to allow for a host of commercial uses,” said Aimee Nassif, planning and development services director of Chesterfield.
Taubman became interested in developing the area in the Valley because the market, community and location of the area provide the three fundamentals for constructing a dominant shopping location, MacDonald said.
“The center would be the dominant fashion outlet shopping destination for the entire St. Louis Metropolitan Area and contribute to expanding the area’s tourism base,” MacDonald said.
The project went back to the Planning Commission on Monday, Oct. 10 for a vote on the zoning matter, Nassif said. With a vote of 6-2 the commission recommended approval of the zoning request. The Planning Commission is a recommending body to the City Council, so next the proposal went to the Planning and Public Work Committee on Thursday, Oct. 20 and it was recommended to the next step by a vote of 3-0.
Next, the proposal will go in front of the full City Council, which will be the last step in the zoning process. The council will read through the legislation twice before they vote on Monday, Nov. 21.
However, there is some opposition to the proposal.
Michael Lebovitz, Executive Vice President of Development and Administration of CBL Properties, which owns the Chesterfield Mall, said the CBL is opposed to the idea of developing a new outlet center in the Valley.
“We are opposed to the proposed rezoning because the development of an outlet center two miles from Chesterfield Mall will directly duplicate stores and brands,” Lebovitz said. “Outlet centers have traditionally been located with much more spacing from traditional retail facilities so as not to cannibalize sales from the full service shopping facilities.”
Lebovitz said CBL feels the public should be opposed to having a new development so close to the Chesterfield mall. He also put emphasis on the instances of repetition of stores that would occur between the mall and the proposed outlet center.
“The proposed outlet center was compared to a development called Great Lakes Crossing in Detroit,” Lebovitz said. “When you compare the tenant/brand lineup in Great Lakes Crossing to Chesterfield Mall, there are 55 duplicate stores/brands.”
Yet, Libbey Malberg-Tucker, assistant city administrator for Community Services and Economic Deveolopment, said only one of the two outlets will eventually be built.
“In this lending environment, banks want developments to have leases pre-signed so they can be assured someone will actually be occupying the buildings they are wanting to build,” Malberg-Tucker said. “So, it will be a matter of which developer can sign with the most tenants and get the additional financing they need to be able to build the project.”
The competition between the outlet centers says a lot about the community of Chesterfield, Malberg-Tucker said.
“Outlet malls are currently the growth area of retail, and they are looking at communities all over the world to expand, but I doubt there are many communities that have two competing projects like this!” Malberg-Tucker said.
Each of the strip malls could bring in a lot of money through taxes. A new strip mall in Chesterfield could generate $1.5 million through sales taxes, Malberg-Tucker said.
“It will bring additional sales tax dollars into the city,” Malberg-Tucker said. “The schools and other taxing jurisdictions such as the libraries and St. Louis County will also benefit by the way of property taxes that will be generated from the projects.”
Due to the magnitude of the possible developments, many jobs also could be created. Malberg-Tucker said 500 construction jobs would be needed for the Spirit of St. Louis Outlets. From the construction of the outlet there could potentially be 75 management and 2,000 retail positions as well.
One concern given for the construction of the outlet center is the possible drop in property values in the area. The average cost of a property in Chesterfield is around $527,000 said Marty Levison from Levison Appraisal Company.
Levinson said for a property to have a good property value, its setting should include good subdivisions and neighborhoods supported by excellent schools and have the amenities buyers are looking for. However, Levison does acknowledge the affect an outlet center could have on the Valley.
“Commercial areas completed properly and with adequate planning often add to property values, but of course they can also have a negative effect,” Levison said. The area of the Spirit of St. Louis Outlet is already zoned for retail development and the developers are planning on opening in Fall 2013. It would cost approximately $85 million to build.
The Taubman project is not yet zoned commercially. Certain aspects of the outlet, such as which stores will be there and when construction will start, are not yet finalized and won’t be until the area is properly zoned. Yet, Nassif said the developers are aiming for a 2014 opening.
Neither projects have gained final approval.