Construction on the Foothills Mall will begin this month now that the City of Fort Collins and Walton Foothills Holdings VI LLC have signed a redevelopment agreement to clean up blight and improve the property’s public infrastructure.
The City Council and the Fort Collins Urban Renewal Authority Board of Directors on Tuesday approved the final redevelopment agreement with the mall developer. The agreement was signed this week and is available at fcgov.com/foothillsmall.
The mall will remain open during construction. Site preparation work will begin within the next several weeks on the property’s perimeter, adjacent to College Avenue.
The revamped mall is expected to open in time for the 2015 holiday season.
“This is a very exciting project for the City. In my nine years as City Manager, the question I get most often is, ‘What are you going to do about the mall?’ said City Manager Darin Atteberry. “This redevelopment should be a point of community pride. The mall has been a fixture in Fort Collins for 40 years. We need a much improved shopping experience, first and foremost. Secondly, we expect this will be a catalyst for redevelopment of the Midtown area.”
In May, the Fort Collins City Council approved a $53 million public assistance package including a $45 million base financial assistance package that will revitalize the Foothills Mall and restore essential sales tax revenue. The financial package includes an $8 million investment in City infrastructure, including a new Foothills Activity Center and an underpass for pedestrians and bicycles under College Avenue that connects the mall to the Mason Street Corridor and MAX Bus Rapid Transit.
Walton Foothills Holdings returned to the Planning and Zoning Board this fall with a proposal to reduce the overall square footage of the project. That altered the financial agreement and required City Council approval. The Council approved the agreement Tuesday.
Total project investment in the community is expected to be $313 million.
The three major phases of the development:
Also starting construction is a separate, but related project west of College Avenue that will relocate Larimer County Canal No. 2 and make room for a pedestrian/bicyclist underpass under College.
Starting in February, Phase Two of the mall project will consist of new multi-tenant buildings along College Avenue and Foothills Parkway and remodeling of the existing mall. The mall will remain open during construction with work occurring at night. A total of 26 tenants remain inside the mall and another 10 sit on the perimeter.
The mall project is expected to be a catalyst for new development as part of the City’s – and the Urban Renewal Authority’s - efforts to rejuvenate the Midtown area and help address a long-term decrease in the mall’s sales tax revenue. Net taxable sales at the mall have declined 61 percent over the last decade.
Regular updates on the mall construction will be available at fcgov.com/foothillsmall where interested residents can also sign up for an email newsletter about the project.
About Walton Foothills Holdings
Walton Foothills Holdings VI, LLC is a joint venture of Walton Street Capital, a private equity real estate investment firm, and Alberta Development Partners, a Denver-based real estate acquisition, development and investment firm.
About the Urban Renewal Authority
The Fort Collins Urban Renewal Authority assists with identifying and revitalizing areas of the City deemed blighted and provides a funding mechanism to encourage redevelopment. The main funding tool is Tax Increment Financing (TIF) – the increase in taxes generated by the new development – over a period of 25 years. Qualified projects can receive a portion of property tax generated to be allocated back into the project for the community’s benefit. Public and private investment in the areas further promotes redevelopment in a plan area, such as North College or Midtown.