Phase 2 of shopping center moves forward
The second phase of the Silver Lake Village Shopping Center on Adams Boulevard cleared a hurdle Friday, and will face two more Tuesday when project financing goes to the Bartlesville City Council and Washington County Commission for approval.
The Bartlesville Development Authority Board of Trustees approved the financial package at a meeting Friday.
GBT Realty Corp. will purchase 15.5 acres along Adams Boulevard, east of phase one which is under construction, for $1.6 million. It will keep 9 acres for the construction of approximately 95,000 square feet of retail and restaurant space, and the required parking. The remaining 6.5 acres will be donated to the Bartlesville Development Authority for future public and recreational use, according to a BDA fact sheet.
Once certificates of occupancy have been approved for phase 2, the Bartlesville Development Authority will reimburse GBT Realty of Brentwood, Tenn., for the cost of the land and 10 percent of the development costs. The total reimbursement is capped at $3.5 million. The Bartlesville Development Authority will obtain a loan from BancFirst to pay GBT Realty. The loan will be repaid from $227,000 in new annual property taxes plus 10 percent of sales tax collections for phase 2. These funds will be collected through the Tax Increment Financing District already in place, according to the fact sheet.
Tuesday, the Bartlesville City Council and Washington County Commission will be asked to approve $92,825 and $27,302 annually for up to 15 years as part of the loan repayment package. Each amount is 10 percent of the sales tax revenue anticipated from phase 2 retailers and restaurants.
Phase 2 development
The Bartlesville Planning Commission approved GBT Realty’s phase 2 site development plan in November. It does not yet have a City Council OK. At that time, GBT Realty Managing Director of the Shopping Center Division Jeff Pape said a sporting good store would anchor phase 2, but said it would be premature to announce the tenant’s name.
A search last week of Academy Sports + Outdoors website’s career section revealed a listing for a store director at a new store in Bartlesville. The listing was posted Feb. 13, and included a job description, and qualifications. According to the site plan, the sporting goods store would be approximately 63,000 square feet in size.
The Bartlesville Development Authority estimates the sporting goods store would generate approximately $18 million in annual sales, which equates to $612,000 in annual sales tax revenues.
Three other retail spaces would range from 6,000 to 11,000 square feet. An outparcel pad for a restaurant is listed at 6,000 square feet, according to development plans.
Potential additional tenants include a home goods store, a youth-oriented specialty store and a fast, casual restaurant.
The Bartlesville Development Authority estimated phase 2 retailers and restaurant would have annual sales of $27 million, which would equate to more than $900,000 a year in onsite sales tax revenue. Some of those sales and sales tax revenue probably would have been spent on similar items at other area retailers. However, the authority estimates more than $400,000 in sales tax revenue would be new dollars spent in Bartlesville that likely would have been spent at national retailers in Owasso or Tulsa.
Silver Lake Village Shopping Center phase 1 construction is underway, and represents a $20 million investment in Bartlesville. It will feature retailers T.J. Maxx, Ross Dress for Less, Ulta Beauty, Rack Room Shoes, Petco, Maurice’s and Kay Jewelers.
Phase 2 development cannot move forward until the U.S. Army Corps of Engineers issues a wetlands permit for the project. The Tulsa District of the Corps announced the public comment phase of the application process in December. The public comment phase ended in mid-January.
Under Section 404(e) of the Clean Water Act, the U.S. Army Corps of Engineers can issue general permits to authorize activities that have minimal individual and cumulative environmental effects. A nationwide permit is a general permit that authorizes a wide variety of activities, including residential and retail developments.
As of Saturday, the U.S. Army Corps of Engineers Tulsa District hadn’t announced any action on the permit process on its website.
If the permit is approved soon, phase 2 construction could be completed by the 2017 holiday season.