It is the best of times and the worst of times for developers. For those in the midst of projects they are committed to finish, the prospect of empty storefronts or lonely homes can be more than daunting. For Wilder-Balter Partners, builders of The Marketplace in Newburgh, the fact that they”™ve only put a ceremonial shovel in the ground is more likely a blessing than burden in the current economic climate.
But build they will ”“ beginning next year.
“In this economy, people are not as anxious to get started as they were four years ago; development is a complicated, risky business, even in good financial times,” said Robert Wilder, company chairman. “But we feel confident The Marketplace is going to be a great success.”
After more than four years of going through the planning and zoning process with the town of Newburgh, and getting the necessary permits from various state agencies, Wilder-Balter Partners has successfully made it to the finish line, approved to develop 850,000 square feet of space. Currently, its site plan calls for 775,000 square feet of development, giving them an opportunity to build out if the need arises. The company held its ceremonial groundbreaking Nov. 21.
When will those ceremonial shovels become the real deal and actually break ground? “We are going to do some site work now, but I don”™t expect we”™ll really get going until spring of 2009. We need to work with the Department of Environmental Conservation on detention ponds, and we need to get that right the first time around. This is not the time of year to do that type of work, and we don”™t want to have to go back and do it over,” said Wilder.
The 775,000-square-foot shopping complex abuts the west side of Interstate 84. Its main entrance, on Route 300, won”™t be the only way to get in. Wilder-Balter has two additional entrances as part of its overall plan. “We expect about 65 percent of people coming to The Marketplace will be entering on Route 300,” said Wilder. “NYSDOT has approved our plans for a traffic circle at Route 52, which will allow people to enter from two alternate directions as well.”
When completed, the center will be twice the size of the neighboring Newburgh Mall, which has tried unsuccessfully to stop The Marketplace from coming in.
Wilder estimates the construction cost to be approximately $150 million and provide 100,000 man-hours of construction, “depending on how long it takes us to build out,” he said. “When completed, The Marketplace will offer at least 1,600 permanent jobs, something we see as a tremendous boost to the city of Newburgh”™s economy.”
Wilder estimated an annual $2.8 million a year will be paid in county and local property taxes and bring in an estimated $35 million to $38 million in sales tax revenue, 40 percent of which goes to county coffers. Â
Costco is purchasing its 150,000-square-foot site pad, and Best Buy has leased another 30,000 square feet. Wilder says the company is in serious negotiations with an office supply store, a sporting goods store, a 55,000-square-foot supermarket and a multiscreen cinema. JC Penney was a potential anchor, but that deal fell through. “They decided this was not the right time to look at expansion,” said Wilder. “We”™re hoping they will come back.”
While the big box stores are situated as “in and out” destinations for selective shoppers, 150,000 square feet of the shopping center will be what Wilder describes as a “lifestyle center ”“ a pedestrian-friendly section with wide streets, benches, restaurants and small boutique shops.
“We”™re going to give it a village-style atmosphere, which will be a destination for people to walk and enjoy at their leisure,” Wilder said. “We”™re very excited about bringing this project to the town and to the community. It will be very special and unique in the design, and again, we”™re confident The Marketplace will be an economic engine for the community.”
