LEWISTON – One of the developers behind an Exit 80 retail center said increasing salaries and home prices helped bring the Providence-based company to the area.
And Ben Devine, a partner in KGI Properties, dropped a hint about who the anchor tenant might be.
“Twenty-four to 36 months ago we saw a change in housing costs and a demographic shift toward the positive,” Devine said. “Retailers see that and it captures their attention.
“A year ago a $140,000 home is now $250,000. There’s been a strong uptick in income demographics and employment levels are strong. It’s a real resurgence,” he said.
The trends were strong enough for KGI to sign a long-term option on about 40 acres near the turnpike exit for a new shopping complex. The development was announced last week at a city-sponsored press conference, which Devine couldn’t attend.
But he said Thursday that his company has already spent hundreds of thousands of dollars in anticipation of developing what he estimates will be a $50 million project.
“I think it’s a great site,” he said, noting the easy access to the turnpike, Route 196 and Lisbon Street. “We just need to come up with a development plan that we can afford to build.”
The site, directly across from the intersection of the turnpike exit ramp and Alfred Plourde Parkway, is full of ledge. Devine said it’s likely the developers will have to build the complex on tiered grades, which has been successful in other KGI projects.
He foresees a shopping complex with a minimum of two big-box anchor stores and a handful of “junior” tenants – things like restaurants and smaller retailers.
Although he said KGI is in negotiations with a big-box retailer, it’s premature to say who it is. He did offer that the retailer is a specialty merchandiser, rather than a discount or general merchandiser.
“Specialty merchandiser” describes stores such as Dick’s Sporting Goods, Staples, Best Buy or Barnes & Noble – big-box stores that offer hundreds of items under one retail category.
Once all the engineering studies are finished on the site, a blueprint for its development can be considered and construction begun. Devine wasn’t sure what the time frame would be for that, but said KGI is working aggressively on the project.
He also said it was premature to consider asking the city for any sort of tax incentive. “We haven’t gone there yet,” Devine said. “We’re not prepared to ask unless we know what we might need.”
KGI is also developing shopping centers in Scarborough, Sanford and Kennebunk. The company has anchored its existing complexes with Target, Lowe’s, Home Depot, Wal-Mart, Stop & Shop and Kohl’s, as well as Sports Authority and Circuit City, among others.
“I think Lewiston is a ripe market for retail development,” Devine said. “I believe our tenants will do well there.”
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