Friday, July 27, 2001 | 10:58 a.m.
A recent announcement of a high-end retail mall being built by Chelsea Property Group downtown is good news for the economy and will provide competition for other tourist-oriented malls on the Strip, a retail analyst said.
George Connor, a retail analyst for Colliers International, said if the Belz Factory Outlet World on Las Vegas Boulevard South and Warm Springs Road offers any indication, outlet malls can successfully attract people away from the Strip to shop.
City officials say the outlet mall, slated for 39 acres at the corner of Bonneville Avenue and Grand Central Parkway, would likely be the first project on several parcels north of downtown Las Vegas.
Connor said the new downtown mall will have to compete with other high-end retail stores on the Strip, such as the Forum Shops at Caesars Palace, the Desert Passage mall at the Aladdin and the Venetian's Grand Canal Shops.
But he said outlet shoppers are a different crowd.
"To find value and to find that quality, people are willing to get in the car and travel to a destination outside of the Strip," he said.
Conner said to be successful the downtown mall should tap into the tourism market, but it also must appeal to locals, many of whom have disposable income.
Developers of a 54-acre furniture mart across the street from the mall have yet to close escrow on the property owned by Union Pacific Railroad. And though the City Council has chosen Southwest Sports Group to develop 61 acres of city-owned land across from the furniture mart, a final development agreement won't be finalized until early next year.
Las Vegas Mayor Goodman said the countless speeches and other promotional events touting the potential of downtown finally have stuck.
"When I was elected mayor two years ago my primary goal was to revitalize the downtown area ... to rejuvenate it, and to make it into a city within a city," Goodman said. "These people came to us as a result of the message that I was trying to convey that Las Vegas is the greatest city in the world."
The company is investing $80 million to build the 430,000-square foot mall -- named Las Vegas Premium Outlets -- and isn't asking for a penny from the city's redevelopment agency, which often offers incentives for new development. The National Department of Transportation and Regional Transportation Commission have already funded infrastructure improvements needed for the vacant property, such as roads, sewer and water lines.
Mark Silvestri, senior director of development for Chelsea Property Group, said the mayor's energy and the potential for the mall to draw 8 million tourists annually was incentive enough for the company.
"It's in the heart of everything," Silvestri said of the downtown parcel.
Chelsea Property Group has seen its share of success in the 27 shopping malls it owns in 15 states and Japan. In 2000 more than 90 million shoppers were welcomed at its various outlet malls. Chelsea's common stock has been listed on the New York Stock Exchange since 1993.
The mall will be home to 100 high-end outlet stores, including Giorgio Armani, Versace, Polo Ralph Lauren and Chanel. It will also offer restaurants and a food court.
"I know that the test of this facility is when I told my wife about it, she indicated that I had better get a day job because she's going to be doing an awful lot of shopping there," Goodman said.
The company plans to break ground in October, assuming the plans are approved by the City Council by September. The mall is scheduled to open by Thanksgiving 2002 -- about the same time the nearby retail mall and movie theater complex Neonopolis are scheduled to open.
The outlet mall will sit on 30 acres of the property. Two other parcels at the north and south ends will be sold or leased to other developers. Silvestri said he met with a potential hotel developer for one parcel Wednesday.
Lesa Coder, business development director, said Thursday's announcement was probably one of the most significant steps for the city in years. Coder said the retail mall, along with the nearby development, will create a new synergy and economic vitality downtown.
"They envision what the city envisions, about having high density and mixed-use development," she said. "The ultimate vision is it becomes a new downtown."
The new downtown would include high-rise buildings, high-tech centers, and other projects that encourage tourists to travel across the train tracks to the Fremont Street Experience and other projects.
"This is going to have a reverberating effect," Goodman said. "It's going ... to affect any other kind of development that is taking place. It's just going to be the greatest magnet that could be imagined."
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