Construction on the Tsawwassen First Nation's mega malls is expected to get underway soon.
The TFN recently announced it would hold a "construction start event" ceremony on Jan. 22 with developers Ivanhoe Cambridge and Property Development Group.
It's been almost three years since the TFN Economic Development Corporation announced deals with the two companies to develop almost 1.8 million square feet of shopping and office space near Highway 17 and 52nd Street. Since that time, there's been some site preparation work, but there have been other signs, including pushing back the opening date, that would suggest the projects might not be on track.
Ivanhoe Cambridge's project would comprise 1.2 million square feet as a destination retail and entertainment centre. Called Tsawwassen Mills, it would follow the model of the huge CrossIron Mills shopping mall north of Calgary and Vaughan Mills north of Toronto.
Property Development Group is to develop an outdoor retail mall comprising 550,000 square feet called Tsawwassen Commons.
TFN CAO Tom McCarthy recently said the First Nation couldn't comment on the status of the mall development or any confirmed tenants, other than directing inquiries to Ivanhoe
Cambridge and Property Development Group. He did confirm the developers are financing site preparation and construction. A representative with National Public Relations, representing Ivanhoe Cambridge, said no one from the development company was available for comment.
An inquiry with Form Retail Advisors, the leasing agent for Tsawwassen Commons, wasn't returned.
Adding to the picture are the financial woes of League Group. The company runs a number of entity groups that seek investors for various projects, including the Tsawwassen Commons in an undertaking dubbed The Tsawwassen Retail Power Centre Limited Partnership. That partnership was one of several by League that's now seeking creditor protection.
The firm advertised last year the Tsawwassen partnership had a number of "confirmed tenants," including Walmart, Canadian Tire and PetSmart, but now it's not clear if that was the case.
Gracorp Capital Advisors Ltd. is now offering an investment opportunity for Tsawwassen Commons, a project that firm is calling GVest Tsawwassen Power Centre L.P. A description of the investment opportunity notes "three major national stores will anchor the project."
The description also states the project has "secured Letters of Intent to lease from a major Canadian based home improvement retailer (44,000 sq.ft. store) and a major Canadian retailer (63,000 sq.ft. store). A land lease offer has been received from another large U.S. based retail chain (108,000 sq.ft. building). The Power Center has approximately 46% of the gross building space subject to offers to lease."
There's been much speculation Walmart, which recently received approval to open a store in Richmond, would be one of the anchor tenants, however repeated inquiries with Walmart Canada's public relations department on the subject were not retuned.
A media spokesperson for PetSmart also couldn't confirm whether a store would be located at the TFN, only offering, "There is nothing to report at this time for this area."
A spokesperson for Canadian Tire noted they currently don't have any deal to locate in Tsawwassen.
Meanwhile, a spokesperson for Gap Inc., which operates Gap, Banana Republic and Old Navy, told the Optimist they have "no plans to open at this location." Gap and Banana Republic have outlets at CrossIron Mills.
The TFN membership voted in 2011 in favour of the partnerships, but at that time those deals were based on 49-year leases. Following a "due diligence exercise" looking at the feasibility of the projects, those deals were changed to offer more land on 99-year leases, which were subsequently endorsed by TFN members.
Site preparation began in early 2013 and the malls were originally scheduled to open in 2015, but a few months ago the TFN, without explanation, changed that to 2016.
