As construction of the massive Tsawwassen First Nation shopping complex continues, representatives from the two companies behind the project assured local merchants the development would be complementary to existing businesses.
Representatives from Ivanhoe Cambridge and Property Development Group were at a Ladner Business Association meeting last week to provide an update on the massive undertaking and answer questions from the local business community.
Ivanhoe Cambridge is behind Tsawwassen Mills, which will include approximately 1.2 million square feet of retail space with 16 anchor tenants. Property Development Group is building the adjacent Tsawwassen Commons, which will have 550,000 square feet of outdoor retail space.
When asked what the malls will mean for local businesses, John Scott of Ivanhoe Cambridge said the company believes they will be complementary.
"We do a lot of market research before we come into a market," he said, adding the company found that vacancy rates were reasonably low, which suggests a vibrant community.
In terms of competing with established businesses in Ladner and Tsawwassen, Scott said the style of shopping centre planned for the area usually attracts a much higher number of shoppers from outside the community.
"The one thing that we do know is that these shopping centres do draw from a much larger base," he said.
For example, a typical mall draws most of its customers (87 per cent) from a 20-kilometre radius, while outlet-style shopping centres only draw about 65 per cent of customers from the same area.
Scott said the company is working with TransLink to improve transit service to the area, and bus stops have been planned along the access route to the shopping centre.
Tsawwassen Business Improvement Association president Randy Scott said he is not interested in a similar presentation until the developers are prepared to offer more concrete information.
"What are they prepared to put back into the community?" he asked. "They haven't offered us anything."
Randy Scott said he would prefer to see representatives for the TFN malls sit down with the Delta business community to discuss how the massive development can benefit the area.
"They've got to start telling us about what they're going to do for the community," he said.
Typically, large-scale developments pay into an amenity package, money that can be used to upgrade parks and beautify the community.
"We're not getting anything," Randy Scott said. As for the assertion that the Tsawwassen Mills and Tsawwassen Commons developments will complement, not compete with, local businesses, Randy Scott said money spent at any of the chain retailers planned for the massive complex will not stay in the community.
A lot of the money spent at local businesses stays in the community, as business owners and employees who live in the community spend the money earned at other local businesses, he said.
"That is what's going to impact the community," Randy Scott said.
Delta Chamber of Commerce executive director Ian Tait said his organization is planning a meeting with TFN, Ivanhoe Cambridge and Property Development Group later in the year.
"Plans are underway to host an information session in the fall," he said. "We look forward to bringing information to members and the community on all TFN developments."
Earlier this year, Ivanhoe Cambridge announced that a Bass Pro Shops is planned for Tsawwassen Mills. The 145,000-square-foot recreational retail store will be the fourth in Canada and the first in B.C. At the same time, Property Development Group announced its first anchor tenants - a 108,000-square-foot Walmart as well as a 44,000-square-foot Rona.
Property Development Group representative David Coon told the LBA meeting that a third large tenant would be announced in two months.
Site preloading continues at Highway 17 and 52nd Street, with work on the Tsawwassen Mills's foundation and superstructure scheduled to begin in mid-2014. Work on both complexes is expected to continue throughout 2014 and 2015 with a grand opening planned for spring 2016.
The two developments are expected to create 6,500 construction jobs and, once completed, 4,200 retail jobs.
