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Politics & Government

Analysis: Demand Exists for Outlet Center

The Eagan Economic Development Authority receives a market analyst for proposed 400,000-square-foot in the Cedar Grove area. The report says the outlet mall would not compete against a 500,000-square-foot shopping area planned for the Lockheed Martin site

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A market analysis has found that two retail centers proposed in Eagan could coexist without hampering each other’s success.

In summarizing the research at Tuesday night’s , Community Development Director Jon Hohenstein said a would offer a different retail experience than a .

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“The bottom line ... is that the traditional retail as being contemplated at the central area and the outlet retail are sufficiently different,” he said. “The two projects would not directly compete and both could be developed, if they are approved.

“Secondly, there is market demand in the region for this type of product and this type of outlet center.”

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The market analysis, conducted by Maxfield Research, was received without comment by the Eagan Economic Development Authority, which is composed of members of the City Council.

“My guess is this will get more review closer to the approvals, the outlet mall in particular,” said Mayor Mike Maguire.

The EDA asked Maxfield to perform the market analysis—to determine whether or not the two retails project would compete against one another—when the board approved a preliminary concept plan for the outlet mall in April, Hohenstein said.

The study was expected to cost the city $2,000.

Paragon Outlet Partners, LLC is in the midst of a 180-day exclusive negotiation period with the EDA for the Cedar Grove site. The Baltimore, MD-based company wants to build as many as 100 high-end outlet stores in the Cedar Grove Redevelopment Area.

If the project is approved by the city, construction of the open-air, pedestrian-friendly mall could take as long as 15 months and cost as much as $100 million.

Word of the outlet mall project came shortly after CSM Corporation announced plans to redevelop a 47-area parcel in downtown Eagan into a 500,000-square-foot retail center.

CSM purchased the parcel in following

The developers plan to begin construction on the proposed complex in April 2013—one month after Lockheed moves out of the facility, and open the retail center in the fall of 2014.

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