TULALIP — Snohomish County will get a major new outlet mall in 2005, and the Tulalip Tribes will get increased economic security under an agreement approved Tuesday with a New Jersey firm that operates 60 such shopping meccas.
The mall, to be developed and operated by the Chelsea Property Group of New Jersey, will have 100 to 120 designer and name-brand stores on 47 acres north of the new tribal casino at Quil Ceda Village, tribal officials said.
"This is the synergy we have wanted to create to make our casino a success and to make our tribe a success for generations to come," said Herman Williams Jr., tribal chairman, as he and other board members signed the agreement. "This is very important to the tribe."
Tribal officials hope that people going to the new casino will be attracted to the outlet mall, and vice versa, ensuring the success of both.
The lease agreement, which extends for 75 years, should initially bring the tribal government $1.2 million annually, Williams said.
The retail development, to be called Seattle Premium Outlets, is expected to provide about 300 jobs when construction begins this spring, including work for tribal members.
The mall, which is scheduled for completion in spring 2005, would create an estimated 800 full- and part-time jobs with an annual payroll of more than $15 million, tribal officials said.
Tribal board member Stan Jones Jr. called the agreement a "historical moment" for the tribe. The mall is a significant piece of what tribal officials hope will eventually become a major destination resort that includes a hotel, a theme or water park, a recreational vehicle park, a golf course, restaurants and other retail development.
The area already hosts a Wal-Mart, a Home Depot and other retailers.
Brad Stipe, a senior director of Chelsea Property Group, said he anticipates about 6 million people a year to visit the outlet mall.
He said he liked the Tulalip site because its proximity to I-5 gives it "tremendous visibility in an area, with high traffic counts."
"A lot of our customer base is drive-by traffic," he noted.
Stipe said the Tulalip casino is "already a great success" and added that the casino and the outlet mall "will be an unbeatable team."
Chelsea owns and operates outlet malls around the world, including the one at North Bend. Stipe declined to name specific stores for the company’s newest project, but he did say it will have tenants similar to North Bend’s, which include Nike, Dress Barn, Adidas, Black &Decker, Lenox, Samsonite and Gap.
"This one will be considerably larger and much more diverse," he said.
Tulalip board member Mel Sheldon said the new mall is an important step for the tribes.
"This isn’t just a business development, but a diversity of the tribes’ assets," he said. "It will hold our business park in good stead."
Tribal officials have said a strong retail base is essential to help them achieve their goal of economic self-sufficiency because nobody is sure about the long-term stability of gambling revenues.
Indeed, the casino recently laid off 240 people after revenue projections were lower than expected.
Sheldon said he expects the mall to provide an economic shot in the arm beyond the Tulalips and their business center.
"This should become more of a magnet for our entire area," he said. "I believe the surrounding community will benefit as people stop for gas or visit restaurants."
Linda Johannes, general manager of Everett Mall, said the mix of stores in the outlet mall shouldn’t overlap with those at her mall. If anything, the Tulalips’ outlet center may bring more shoppers to central Snohomish County and keep residents closer to home, she said.
"We think that it’s going to create a wonderful synergy north of Lynnwood. The market’s going to see retail happening here in Everett, so they should complement each other," she said. "People won’t think they have to go south to find good retail stores."
Everett Mall recently underwent a facelift, and Alderwood Mall in Lynnwood is undergoing an expansion that should be complete this fall.
Tribal officials, who have long planned the new retail center, said negotiations with Chelsea lasted three years.
But tribal officials agreed the deal was well worth waiting for.
"The day’s finally here," Jones said. "I’m really proud of this. This is a good moment for every one of our tribal members."
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