Thursday, March 27, 2008

100-store outlet center considered

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Tom Fedor⁄The Gazette
Natelli Communities is considering a proposal for an outlet center for a parcel of land along I-270 in Urbana. If built, the center could be similar to the Leesburg Corner Premium Outlets in Leesburg, Va., which were built by Chelsea Property Group.
A 100-store outlet center could be on Urbana’s horizon.

Tom Natelli, president of Natelli Communities, is proposing to build a 600,000-square-foot outlet center along Interstate 270, south of Fannie Mae, in Urbana.

If approved, the site would have about 100 stores, and would be built by Chelsea Property Group, a division of Simon Property Group Inc., developer of the Leesburg Corner Premium Outlets.

Chelsea approached Natelli last fall, but an agreement has yet to be reached. ‘‘We have to finalize negotiations with Chelsea,” he said.

Natelli said the center could cost between $100 million and $125 million to build, based on similar projects.

But before any building can happen, the Frederick Board of County Commissioners has to approve the proposal.

The land is zoned MXD, meaning Natelli can build a mix of offices, residences and retail stores to complement existing development.

He is allowed to build 300,000 square feet of retail on the site, and would need commissioners’ approval to double that to between 550,000 and 600,000 square feet to accommodate Chelsea’s intentions. Including parking, the center would encompass about 65 acres, he said.

‘‘That’s the scale of what they’d like to do, in terms of layout and number of stores,” Natelli said.

Michele Rothstein, a spokeswoman with Chelsea Properties Group, declined to comment on or confirm that such a project is in the works.

Natelli said it would likely be at least two years before construction began because of the steps necessary to approve the project.

He said it would probably take six months to a year for the proposal to go through public hearings with the Frederick County Planning Commission and the Board of County Commissioners.

If commissioners give Natelli permission for a larger retail site, he expects it would be another six months to a year for site plan approval and building permits.

Natelli said the concept would include three vehicle entrances, two from Route 80 and one from the relocated Route 355.

‘‘As you approach [the outlet center], you come down a main street lined with stores,” he said. ‘‘Pedestrian ways would break off from the main street and lead through the center to the central plaza. It’s really designed to create a sense of place.”

Natelli said he is thoroughly considering the design of the center. He said he wants it to be consistent with other structures around the Villages, and maintain the historic feel of Urbana.

The storefronts would be one or two stories, and be ‘‘done in the style of an old town, with brick fronts and porches,” he said.

He added that outlet centers had been evolving toward creating a pleasant pedestrian experience in the last 10 to 15 years, instead of the traditional line of stores along a parking lot.

‘‘They’ve gone in the right direction, in my view, but what we’re asking them to do is take it up a step,” he said.

One of the reasons Chelsea is interested in the property was its proximity to the Washington, D.C. metro area, Natelli said. An outlet center can be expected to draw from a radius of about 30 miles. The nearest outlet centers to the proposed location are Prime Outlets in Hagerstown, Gettysburg Village Factory Stores and the outlets in Leesburg, which are all about 30 miles away from Urbana.

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