By Carol Coultas,Business Writer

LEWISTON – A Rhode Island-based developer intends to open a big-box store on a 40-acre parcel near the Maine Turnpike.

But what it is and when it will open are still unknown.

KGI Properties Inc., a real estate development company based in Providence, is close to closing a deal with a major anchor retailer for the parcel that sits directly across from the exit ramp of Exit 80, said Jim Bennett, city administrator. Negotiations are under way with a second retailer for the same parcel.

“We’re at the brink of an economic development explosion within the city of Lewiston, and we commit to you this afternoon that our retail development recruitment will continue to be unwavering and unceasing,” said Mayor Lionel Guay at a City Hall press conference yesterday.

KGI has developed 2.5 million square feet of retail throughout New England. On its list of typical anchor tenants are Bed, Bath & Beyond, Dick’s Sporting Goods, the Sports Authority and Target, as well as Wal-Mart, Lowe’s, Kohl’s, Home Depot and BJ’s Wholesale.

KGI developed the 500,000-square-foot Scarborough Gallery in Scarborough and a 350,000-square-foot shopping center in Sanford as well. A representative from KGI was unable to attend the news conference, and a call placed to KGI’s headquarters wasn’t returned by deadline.

Bennett also said another developer, who insisted on anonymity, is interested in a 30-acre parcel next to the KGI parcel.

That parcel is zoned industrial and would have to be rezoned to urban enterprise to allow for a retail use. Bennett said the zoning change likely would come before the City Council, perhaps as early as October.

The unnamed developer is also close to securing a major retail tenant for that parcel, but is waiting to see how the zoning and permitting process proceeds, said Bennett. The process could take between four and six months.

Because of the development costs associated with the area – primarily road improvements and blasting the ledge in the KGI parcel – the two projects are co-dependent, said Bennett. Both parcels have access to power and water infrastructure, but significant road improvements are needed to accommodate retail traffic.

There are no city tax incentives planned for either development. But Bennett said the city expects tax revenues to exceed $400,000 per year if both developments fly. For context, he said Lewiston nets about a $500,000 a year from the Wal-Mart Distribution Center.

He also acknowledged the fine line city development officials must walk between courting retailers and informing the public. He said most major retailers refuse to identify themselves until all the t’s have been crossed and i’s dotted.

“They don’t tell you the end use until all the permits are in hand,” he said.

But because of continuing high interest in local shopping options, he said he thought it made sense to inform people of the continuing developments, even though he can’t release all the details.

He also took a moment to savor the significance of having two major retail complexes in the works. Bennett recalled being in negotiations with Starbucks for a Lewiston location 3 years ago, but the coffee franchise didn’t think the city had the right income levels. That’s changed.

“People are falling over each other to get in here now,” he said.