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| Nebraska Crossing Factory Stores |
You've driven past it while headed east or west on Interstate 80. You know exactly where to turn. But how often do you stop at Nebraska Crossing Factory Stores?
The answer to that question could change if a team of local and Arizona-based developers and the City of Gretna realize their vision of a $60 million makeover that would attract some of the nation's leading outlet retailers.
The center at the intersection of I-80 and Nebraska Highways 6 and 31 would gain an additional 115,000 square feet for stores and restaurants, as well as such amenities as benches, outdoor fire pits and a pedestrian-only “main street.”
“Omaha's going to be a great outlet town,” said Rod Yates of OTB Destination in Scottsdale, Ariz.
Plans for the Gretna center have been in the works since last summer, but a similar project announced this week for La Vista by a Baltimore developer raises questions about which development will persevere.
Cordish Cos. wants to build a $114 million entertainment and outlet retail complex at Southport West, just off I-80 near 126th Street and Giles Road. The site already is home to Cabela's, several hotels and the La Vista Conference Center.
Both groups of developers agree on one thing: The market will support only one project.
OTB Destination did more than two years of research on potential outlet space in the Omaha market before teaming up with the City of Gretna and two local developers who own the property, Yates said.
A community meeting to explain the plan is scheduled for Saturday at Gretna High School, and residents will vote next month on whether to direct tax revenues to the project.
Yates said the Gretna center would be more attractive to retailers. “They'll look at Council Bluffs, Gretna and La Vista. They'll look at all the factors.”
Twenty percent of the space is committed, he said, but he declined to identify the companies.
The Gretna site requires less construction, so stores can open more quickly, he said.
“Nike wanted to be open last year for the College World Series. That could happen in Gretna this year.”
Retail companies don't locate their stores too close together — outlet or otherwise — and Gretna is farther than the La Vista site from Omaha-area malls, Yates said.
Such policies are called radius restriction agreements. They limit where new stores may locate. The intent is to ensure that a new store doesn't cannibalize sales at an existing store.
Developers of the La Vista project have said they're not overly concerned with radius restrictions, but Jim Sadler, general manager of Westroads Mall and Mall of the Bluffs, confirmed that such restrictions are a real part of the equation.
Most stores still have such terms in their lease agreements, although they might not cover as many miles as they did years ago, said Sadler, who added that he hasn't spoken with developers of either project.
The area of a radius restriction depends on the individual retailer, he said, and would apply to the outlet shopping segment.
Westroads and Mall of the Bluffs are owned by General Growth Properties, which also owns Oak View Mall.
The Gretna shopping center is more than 18 miles from Regency Court and Westroads, 13 miles from Oak View and nine miles from Village Pointe. The La Vista site is a bit less than eight miles from Westroads, about five miles from Oak View and four miles from Village Pointe.
“We're going to be complementary retail,” Yates said. “That's what retailers want.”
Another strength of the Gretna site is its proximity to Lincoln, from which it will draw customers, Yates said. It is easily accessed from the north and south as well, he added.
When fully expanded to about 310,000 square feet, Life Outlets at Nebraska Crossing would join the nation's existing 150 premium outlet centers, Yates said. Currently, the closest top-brand outlet malls are near Minneapolis and in Williamsburg, Iowa.
Gretna's current 195,000-square-foot center has 53 storefronts and 30 tenants. Eight are outlet stores.
When the center opened in 1992, about 30 national retailers were involved in the outlet business, Yates said. Today there are more than 300.
He said he will seek such brands as Bloomingdale's, Saks, Banana Republic, J. Crew, White House/Black Market, Under Armor, Columbia and Coach. The current outlets, among them Carter's, Dress Barn and Lane Bryant, will remain as well.
National research indicates the Gretna project is one of 41 outlet centers under development around the country that plan to open in 2013 or before. One in four of those, including Gretna, would be converted from existing retail space.
“The opportunity is in the market,” Yates said. “This is a great way to reposition distressed retail.”
Gretna businessman Randy Sump, who has followed the city's work on the development, said the revitalized outlet center will result in jobs and tourism.
“It gives us a way to grow. I think it will spur more development.”
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