1998-09-16 Tanger Outlet/North Branch• MEMO
To: city council
Liz stockman
Mike Couri
Pete Carlson
From: Dave Lund
Date: September 16, 1998
Subject: Tanger Outlet Center/North Branch
The Tanger Outlet Center was reviewed with the North Branch City Administrator. Below are
some of his comments.
1. The Center has been around for roughly 5 years. The City installed a new storm sewer system,
road improvements, and a new water tower. These improvements were financed through TIF. The
total tax revenue is $400,000 per year. In five years, everything was paid for, so they are offthe
TIF program.
• 2. The Center has now phased through their first set of leases and has renewed/replaced their
businesses. There are no vacancies.
3. Before the Center, Branch was a town of 2500-3000 people located on a major freeway(35W),
but had no identity. The outlet center has put them on the map. As Tanger advertises (they do a
large amount), the name of North Branch is always included.
4. They have had very few police problems, only occasional shoplifting. They haven't attracted
any "bad elements or blight."
5. The land values in the area have gone up a great deal. They have been building new homes at
the rate of 150 homes/year for the last three years. They do not attribute the growth to the outlet
mall, but their position on 35W and proximity to the metro area.
6. Because of Tanger, two furniture stores (South Dakota Furniture Market and Slumberland)
have built close to the mall.
When asked if the City would want the outlet center if starting from scratch, he said, "not only
would we want the outlet center, but we would like a second and third one. You should cross
vour~ngers and hone thek come. It would be a big advantage for the community."
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L.J
• WOODBLTRY OUTLET MALL
Background Information -obtained from the City Administrator and Public Safety Director. All
information is from Woodbury, no editorial comments.
The Woodbury Outlet Mall was built by the Horizon Outlet Center from Holland, Michigan.
There were "no battles or design issues". The operation has been good. The following comments
were added.
1. The mall became a magnet for trafhe and required putting in a trailic signalized
intersection. Recommendation: Hire a traffic engineer to study the situation and pass on the
costs.
2. The mall put w'oodbury on the map. It draws traffic from all over. This is not as
significant today, as Woodbury now has two larger centers.
3. It was built in two phases, as planned. They wanted to expand again, but decided
against it because of land costs and availability. Should we be thinking about future expansion?
One issue for them `vas whether people could walk back and forth between the mall and
expansion areas. It may be a safety issue dealing with walkers and ears.
• 4. Public Safety....Not a big drain on services. They had 173 calls last year of which 61
were criminal (bad checks, credit card fraud, shoplifting etc.) and 112 service calls (accidents, lost
children, people locked out of the car etc.). The mall has not been a problem except it is located
apart from the general patrol area. It is so close to St. Paul that it would probably be a bigger
target for shoplifters than Albertville. It would take much less than 1/4 of an oiJicer to handle the
complaints. Try to put the security burden on them. The taxpayers shouldn't have to pay.
5. They provided no financial incentives as it is the City of Woodbury philosophy to
provide incentives only for industrial and office. There is enough commercial development.
6. Concerns- not for the City, but for the mall. Will outlet shopping have a future? Their
prices are equivalent to sales in other stores. Selection could be hit or miss. With catalog and
Internet shopping increasing, will this style survive? With no other major malls near Albertville, it
should do well. There are now more vacancies in Woodbury than in the beginning, but the
business is a community benefit.
Reported 'ey David Lund
July 8, 1998
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• MEMO
To: Liz Stockman
Michael Couri
Pete Carlson
From: David Lund
Date: September 14, 1998
Subject: Staff Meeting with JMJ Properties
We have arranged for a staff meeting with JMJ Properties for 2:00 p.m. on Monday, September
28, 1998. Steve Smallbone will be sending us some materials related to proposed changes and
potential agenda items they may wish to discuss.
cc: Patti Stalberger
Duane Berning
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