Vestar to build almost 8 million square feet of retail in Southwest
KINGMAN - The retail developer that recently purchased more than 200 acres off Interstate 40 is enjoying a record-setting year, as it has either developed or plans to develop more than 7 million square feet in the Southwest in 2007.
Vestar Development Co., based out of Phoenix, expects to open more than 3.3 million square feet of retail development and begin construction on another 4.4 million before year's end, according to a news release from Rose & Allyn Public Relations firm.
Vestar is partnering with Vanderbilt Farms, LLC of Tempe to construct a marketplace off I-40 called Kingman Crossing.
The city of Kingman expects the project to not only generate sales tax revenue but also to decrease traffic on Stockton Hill Road.
Another perk for the city is the 168 acres it owns on the south side of the interstate.
One option the city is contemplating is selling the land for commercial development. Vanderbilt owns the 200-plus acres on the north side.
"By the decade's end, Vestar will deliver more than 10 million square feet of shopping, dining and entertainment destinations, with private investments totaling $1.4 billion," said Stacy Pearson of Rose & Allyn.
"The year 2007 is unprecedented for both Vestar and its community partners," said Vestar Executive Vice President David Larcher about the company's many projects throughout Arizona and California.
"Each of our retail projects generate revenue, create jobs and provide convenience and quality of life for the surrounding towns and cities. This is a marquee year for retail in Arizona."
The city and Vanderbilt are each paying half of the Crossing costs after Vanderbilt took over an existing contract between the city and the former landowner and local developer Bill Nugent in January.
Nugent entered into the agreement with the city in December 2005. Under the agreement, both sides will also give up several acres each for the traffic interchange itself. Vanderbilt has currently paid $12,165 of its 50-percent portion, according to documents obtained from the city. It is expected to pay another $15,000 to cover one half of a $30,000 payment to ADOT for ADOT to review the first 30 percent of the design plans.
At the Council meeting on March 19, five of six Council members plus the mayor voted in favor of issuing the payment to ADOT. So far, the city has, through a private firm hired to front all the expenses of the Kingman Crossing project, incurred a debt of approximately $118,000. Stone & Youngberg Capital Group will receive 9 percent of whatever the city gets when it sells its land. Mayor Les Byram said real estate agents told him that the city could get between $20 million to $28 million for the 168 acres.