Megamall Construction Originally Scheduled For 1990, The Anticipated Spokane Valley Mall Is Still Waiting For The Go Ahead

Drivers probably no longer notice the sign marking the site of the Spokane Valley Mall off Interstate 90 near Sullivan Road - it faded into the scenery long ago.

But the unofficial race to build the area’s next megamall has been inching along.

Market observers have said that this region could sustain only one of two proposed projects: Watson & Associates’ International Expo - with a 10-acre regional mall - in Post Falls, or Price Development Co.’s Spokane Valley Mall.

In February, the Seal Beach, Calif.-based Watson & Associates all but dropped out of the contest. Jim Watson announced that plans for one of the nation’s largest shopping centers had shrunk. The project, now called just Expo, will have more light industrial space than retail.

That bodes well for the much-anticipated Spokane Valley Mall, construction of which was originally scheduled to begin in 1990.

Since Watson’s announcement, G. Rex Frazier, president of Salt Lake City-based Price Development Co. and its real estate investment trust, JP Realty, has declined to comment on whether it had any effect on his project.

Enter Spokane business and political leaders pitching an $80 million downtown renovation.

The owners of River Park Square asked the city April 13 to close Post Street between Main and Spokane Falls Boulevard to make room for a major shopping and parking complex, including a new Nordstrom store.

If the city council approves the Post Street project next month, and a grant and federal loan are obtained, construction could begin as early as this summer for an opening in 1998.

Efforts to reach JP Realty’s Frazier this week were unsuccessful.

However, Frazier has reportedly told others that he’s keeping a close eye on what happens in downtown Spokane.

Mike Taylor of Taylor Engineering, the lead engineering firm for the Valley mall, said that preliminary utility work is proceeding, but it’s possible the downtown renovation could affect the Valley project.

County Commissioner Steve Hasson said he has met with Frazier and received assurances that the mall would be completed.

“The scope of that (downtown) project could affect his,” Hasson said. “He’s going to be watching that.”

However, one observer said a reborn downtown and a multimillion-dollar Valley regional mall could both exist.

“I think there’s room for both of them,” said Joe Ward, of Pinnacle Realty.

But some Spokane merchants worry about losing business to a Valley megamall, he said.

“From the perspective that there’s only so many retail dollars to spend,” Ward said, “a lot of smaller retailers are concerned about it.”

Retailers are also watching what happens with a proposed redevelopment of University City Shopping Center.

“There are retailers on the North Side that aren’t making a decision (about relocating or expanding) until either Price mall goes or (University City) mall is redeveloped. They don’t want to be in the wrong area.”

Price Development bought the site for the proposed Valley mall from R.A. Hanson Co., which is proceeding with its plans for the Sullivan Park Center, including a business park and industrial park.

David Carlsen, real estate manager at R.A. Hanson Co., said, “The slow process is proceeding. We anticipate development of Sullivan Park Center as we always have.”

R.A. Hanson had asked the county for an extension for approval of the project in December. Spokane County previously granted a three-year extension in 1991.

County planner John Todd said that he anticipates granting the extension soon. The county is still considering comments given by involved parties, including the Washington Department of Transportation.

Original mall plans call for about 650,000 square feet in the first building phase.

However, Price Development has proposed increasing the size to 800,000 square feet.

Greg Figg, transportation planner for the Washington Department of Transportation, said that a larger mall would generate more traffic and a new I-90 interchange at Evergreen Road would be necessary.

“We’re asking that they don’t go beyond 650,000 square feet without the interchange,” he said.

According to general shopping center studies, a mall of 650,000 square feet would generate about 23,000 daily trips; 800,000 square feet would produce about 27,000, Figg said.

Price Development has asked for more space reportedly to suit its tenants.

Frazier has said that he is “redesigning to accommodate certain people,” Hasson said.

Price Development had previously announced that Mervyn’s, the Bon Marche, J.C. Penney and Lamonts would be among the anchor tenants.

However, Mervyn’s has bowed out of the project, said Carol Johnson, a spokeswoman for the Hayward, Calif.-based company. “Those plans are on hold,” she said.

Figg said that Price Development needs to secure another anchor tenant.

“They have two tenants on board, they needed a third,” he said. “They said if they had three, they would start the project.”

The opening date for the mall had been pushed from 1992 to 1993 to 1994. It was last announced as 1996.

A tangible sign of the mall’s progress would be another road project associated with the shopping center.

The county requires the developers to widen Indiana Avenue between Pines Road and Sullivan. That could begin as early as this summer, Figg said.

Other stores are paving the way for the mall by moving to the Sullivan corridor, Ward said. “A lot of retailers like to be around the mall, but not part of the mall.”

“Usually the mall comes first and all these category killers come in later,” he said, referring to large companies such as Smith’s Home Furnishings.

“It’s just the opposite there.” He cited the move of several stores to that area: Smith’s, Fred Meyer, Target and nearby Safeway.

“That should give impetus to Price,” Ward said. “There are already a ton of shoppers going into the corridor.”