By John Dobberstein, Editor
The once-promising Shoppes at Aspen Creek in south Broken Arrow has languished for more than a decade, but that looks to be changing this year after the city signed a development agreement Monday with a new developer.
The Broken Arrow City Council approved an agreement between the city’s Economic Development Authority (EDA) and Walman Brown Aspen Development to build out approximately 38 acres of retail in three phases on Aspen Creek Drive.
Potential merchants were not revealed, but several national retailers representing about 100,000 square feet have reportedly signed letters of intent to locate at the Shoppes, which currently only has the theater, a handful of retail establishments and an apartment complex.
Earlier this year the EDA agreed to buy 38 acres near the Warren Theater from Sig-Broken Arrow LTD for $7 million after the City Council and staff concluded it was necessary to move the project forward. The project was originally started in 2013 and Sig-Broken Arrow had approached the city earlier this year to request additional incentives to bring in retail. Closing on the land deal is slated for June 28.
Phase one of the project – which is the largest — calls for 160,000 square feet retail to be built on 22.75 acres that Walman Brown Aspen Development would buy from the city for $10. The developer estimates some $41 million in sales tax would be generated annually from the parcel.
In phase two, to be completed after the first phase is built, the city will sell 13.2 more acres at $2 per square foot to the developer, and another 100,000 square feet of retail would be built expected to bring in $25 million in annual sales tax revenue.
For phase three, to go up after phase two is done, the EDA will sell to the developer the remaining 2.3 acres for $6 per square foot for another 20,000 square feet of retail that would generate $10 million a year in sales tax revenue.
The developer’s total capital investment is estimated to be $24 million, plus $6 million in infrastructure that the city has agreed to reimburse.
The developer’s representative, Steve Walman, told the City Council he was determined to move the project forward after many years of disappointment.
Walman estimated he’s the fifth broker sought out to create interest in national tenants to come to south Broken Arrow, but the cost of money, labor and materials for new construction have caused difficulties. Tenants wouldn’t pay the lease amounts needed to make a deal work, which created stagnation in the project, he added.
“We’re members of the community. We understand that when you get this kind of momentum, you can’t afford to let it go,” Walman told the City Council. “If you let it go, it doesn’t come back for a long time.
“We’ve got a bunch of leases and we’ve got tenants that want to be here. We’ve got a great site that could become the hub of the retail community of south Broken Arrow. And this kind of gravity into a market is the catalyst for other tenants and restaurants and other people (coming in).” “I’m committed from a personal standpoint, and from a professional standpoint. I’m excited to have this much interest in Broken Arrow. I honestly think it will be something that serves the community over a long period of time.”
Christopher James Cseh says
“…22.75 acres that Walman Brown Aspen Development would buy from the city for $10.”
Is the $10 for the 22.75 acres correct?