Shopping center expansion moves ahead
May 7, 2008
By Ed Farrell
With work well underway on Phase 1 of Trace Development – LLC’s expansion of the Mountain Valley Center in North Bend – corporation partner Ross
Vontver made a presentation last week to the North Bend Economic Development Commission.
Vontver would only reveal the identity of one new store in Phase 1, the new Washington State Liquor Control Board outlet, but said every effort was being made to address some of the community’s retail needs in the expansion.
The new liquor store, he said, will be located next door to the existing Schuck’s Auto Supply store.
Vontver told the panel that ample room existed in Phase 1 to locate five or more businesses in the center.
Phase 2 would feature future homes for larger businesses, ideally a long-awaited pharmacy-type retail establishment or a restaurant, or possibly both, Vontver said.
“We’ve had very good interest in the center,” he said, “despite the rumors of a downturn in the economy.”
Trace has constructed similar developments in Duvall, Everett, Kirkland and Monroe. The firm has also been involved in centers in both Alaska and Arizona.
Vontver said his firm operates primarily in speculative construction, where buildings are erected first and sold later. But in the case of Mountain Valley Center, extensive discussions have taken place with future occupants.
A number of “exclusives,” or restrictions in place to give existing tenants protection from similar businesses, must be considered, as well as the center’s original master plan.
“We can’t do a Subway,” he said as an example, “because of the existing Blimpies.”
Vontver said his company was well aware the area was lacking a pharmacy, and that such an establishment in the center was, in his opinion, “a no-brainer.”
As is the need for what he termed “a nice, sit-down restaurant” that would be suitable for both family dining and business-type meetings.
“We think that would be very well-received,” he said.
Vontver told the commission that working with the city has been an absolute delight, in terms of acquiring permits, particularly in light of the city emerging from a decade-long moratorium on growth due to water rights issues.
“It was clearly a good process,” he said, “and one that will no doubt get better.”
Vontver said it was hoped that work on Phase 2 of the project would be started before the end of 2008.
Following Vontver’s presentation, city Finance Director Elena Montgomery gave the commission a brief update on the city’s economic picture, which she described as being very bright.
“The city’s wide open right now and everybody’s walking with a spring in their step,” she said.
With the city’s growth moratorium nearing an end – Montgomery said it wouldn’t be completely lifted probably until June to allow all of the necessary infrastructure and code changes to be in place – city officials were preparing for “the pent-up potential” of eager developers.
Montgomery said retail sales in North Bend were up 13.7 percent in 2007, with sales at the outlet mall doing very well, but that her office had noticed a slight drop off in 2008.
“The first three months of 2008 are not looking that good,” she said, “but I attribute that to the weather we’ve had.”
Montgomery said the most disturbing trend is the city’s Real Estate Excise Tax receipts.
“That’s the only area we’re really hurting,” she said, of the fund, which is fueled by revenues generated by the sales of new and re-sale housing.
“Right now, we’re getting about $6,000 a month from REET,” she said, “when we were getting $17,000 a month.”
Montgomery said the city is actively looking at selling some of its vacant property, and buying others, and is negotiating land-swap opportunities.
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