Peoria gives Park West more time
by Cecilia Chan - Apr. 18, 2008 07:23 AM
The Arizona Republic
Peoria is giving a developer more time to complete Park West, a shopping and entertainment outdoor mall at Northern Avenue and Loop 101.
The City Council has given General Growth Partners of Chicago until March 2010 to finish building the upscale project, which was originally given an October deadline. The open-air mall debuted last November with one tenant, a 14-screen Harkins theater.
"These guys are a good partner," said Steve Prokopek, the city's economic-development director. "They stepped in when the project didn't seem to go anywhere."
City Manager Terry Ellis thanked the council members Tuesday for their patience and support of the project.
"I truly believe at this point we have one of the finest development on the west side," Ellis said.
The developer is leasing to quality tenants and has invested additional capital in the project, Prokopek added.
"We currently estimate the capital investment in the retail for Park West at $65 million for 260,000 square feet of retail buildings and close to $30 million for off-site infrastructure and land costs," he said.
Prokopek said the city would benefit financially from Park West to the tune of a $20 million net for the first 10 years in new sales tax revenue and $50 million in direct revenue over 20 years. The project also is expected to create 1,220 jobs.
The city, in return, will reimburse the developer, General Growth Partners of Chicago, up to $9.8 million in sales tax revenue over 10 years to offset infrastructure costs estimated at $12 million.
The city in 2005 approved an agreement to build Park West in two phases, with 150,000 square feet to be finished and occupied by March 2006 and a total of 360,000 square feet to be done by October 2008.
Since then, the city has given the project two extensions, including in October 2006 when GGP purchased the dormant project from DJN Eagle Mountain LLC. As the new owner, GGP was given until March 2009 to finish the project.
To date, GGP has built more than 180,000 square feet and has secured certificates of occupancy for 125,000 square feet.
"In total, we plan to have about 145,000 square feet of space open by the end of May and over 160,000 square feet open by the end of summer," Prokopek said.
The $250 million project on 56 acres includes 250 apartment units and plans for 322,000 square feet of office space and a hotel.
Prokopek said the city was still shopping for interested developers to build offices and a hotel.
Ellis said Park West would be a unique project and would not have paid off for the city had the council not stayed the course.
"This is just going to be a great place once it is completed and opens," said Councilman Carlo Leone, whose Pine District includes Park West.
"This is an area where we need all these stores and restaurants to open up. People will be well satisfied with it."
Current tenants at Park West
• Harkins Theatres
• Sand Bar
• Francesca's Collections
• Brighton Collectibles
• Chico's
• Sun Glass Hut
• Vans
• Christopher and Banks
• Portrait Innovations
Opening by end of May
• Children's Place
• Flemings
• Merle Norman
• Massage Envy
• Grimaldi's Pizza
• Icing by Claire's
• Sleep Number Select Comfort
• Victoria's Secret
• Red Brick Pizza
• Bath and Body Works
• New York and Company
Opening later in summer
• BJ Restaurant and Brewhouse
• Scottsdale Jean Company
• Fair Oaks Cigar
• Mystic Salon
• Auld Dubliner