$31 million road could prop up Dover Mall
Owners of Dover Mall know many of the drivers on nearby Del. 1 are bound for Christiana Mall to the north and Rehoboth Beach outlet stores to the south. They'd like to encourage more of them to stop in Dover.
Their plan is to add an exit to Del. 1 and guide drivers right to their front door.
Representatives from Simon Property Group and Western Development Corp., as well as city, county and state officials, would like to fast-track a $31 million project that now sits far down on both the Delaware Department of Transportation's and Kent County's lists of projects. As it stands now, DelDOT wouldn’t even start the design process until 2021.
They say the project would attract more shoppers and stores to the mall and offer a boost to neighboring businesses.
But at $31 million, funding may be hard to come by.
John Paradee, an attorney representing the mall owners, said that an estimated $350 million shortfall in the state budget means DelDOT doesn’t have the money to do the project now. He said the only way to accelerate the project is to find other ways to pay for it.
Their plan is to get legislative approval to take out bonds and repay them through toll revenue.
The new project would include a new toll booth right at what is now the back of the mall and construction of new roads running parallel to Del. 1. The plan is to "turn the mall around," that is, to make what is now the back into the front and work as a gleaming advertisement to drivers on the highway.
Paradee said that while the proposed road would bring new business to the mall, it also would be a way to stave off the potential closing of two of the mall’s anchor stores – Sears and Macy’s.
“There have been no indications yet, but we are concerned about those anchor stores leaving,” Paradee said. “It’s no secret Macy’s and Sears have been struggling. Sears has been closing stores and Macy’s isn’t doing as well as it once did. We don’t want to get that phone call. None of the retailers are going to sit around and wait forever.”
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The Dover attorney said that in order to accelerate the project, mall owners paid for three studies – a feasibility study, a toll study and a wetlands delineation study – that are necessary to get the nod by the Delaware General Assembly to move forward with the design.
With the studies completed, a section in the Delaware Code allows private developers to design/construct capital transportation projects that once completed would be turned over to the state for maintenance. This project would fall under that category.
He and the developers believe construction could be funded by issuing bonds guaranteed by money collected at the new toll booths. According to the toll study, by charging 50 cents for each car (the standard cost for tolls along that stretch of Del. 1), more than $32 million would be collected in a 25-year period.
Paradee said any difference could be paid for by tax increment financing, which would divert increases in future property tax revenue toward repayment. But that would necessitate legislative action; only New Castle County and Wilmington (with populations over 50,000) are authorized to use tax increment financing.
If that doesn't work, the mall area could become a Special Development District, and stores would see a tax increase to make up the difference.
A new-look mall
If the project gets the go-ahead by the General Assembly, Simon has plans to upgrade the mall, which was built in 1982 and is considered antiquated compared to Christiana Mall and the Rehoboth outlets.
Paradee said that includes adding 54,000 square feet of retail space and a new look.
The biggest seller, according to Paradee and mall owners, would be the addition of a “power center” on 85 acres at the back of the mall, which would include 647,000 square feet of high-end retail space, like what you see at Christiana Mall.
“We envision three to four new large anchor stores – at least one of which would likely be a major national department store – and then several other complimentary retailers," Paradee said. "The end game is to elevate the Dover Mall to a Class B mall, with the same sort of high-end retail mix as found at the Christiana Mall.”
For Katie McCarthy, of Smyrna, an upgrade is overdue at Dover Mall. She says heading north to Christiana Mall is worth the trip because of what is offered there. If plans for Dover Mall come to fruition, McCarthy said she would likely shop in Dover.
“I come here for certain stores, but quite frankly, Christiana has more to offer,” McCarthy said. “I’ve seen a decline in the number of stores and the types of stores here in Dover. If the new road would help draw the kinds of stores seen at Christiana Mall, I would stay closer to home to shop. Different stores, less traffic. Absolutely.”
While Paradee said market studies show travelers bypass the Dover Mall because of the number of stores and the types of stores offered, he said the number of shoppers has remained steady the past few years. It’s the next couple of years that concern him.
“Both directions currently have better options,” he said. “But if we could elevate Dover Mall to a Class B mall and accelerate building the connector roads, I believe people would have reason to stop in Dover.”
Paradee said that adding 700,000 square feet of retail space to the Dover Mall would not only double the size of the existing facility, it also would be one of the biggest developments in Kent County history.
He said the project would bring more than 1,600 jobs to the area and employee more than 300 construction workers.
Economic development
Dover Mayor Robin Christiansen is a big supporter of the project.
“This road, this bonafide exit to the Dover Mall and Dover Downs, should have been in place many, many years ago,” he said. “I support it as mayor, I support it as a citizen of Dover, and I also support it as the acting chairman of the Kent County MPO (Metropolitan Planning Organization). I believe that the formula John (Paradee) is suggesting for paying for this is a win-win situation for all concerned.”
Christiansen believes there is an urgency to this project. He said sales reports for brick and mortar stores at the mall were not good the last holiday season and one of the retailers has quite a massive list of store closings.
“We don’t want a couple of the anchor stores in the mall to be in jeopardy,” he said.
“This is very important to the economic development in Dover,” Christiansen said. “It will bring jobs and bring people to Dover and the surrounding areas to shop here and eat in our restaurants. I think if we add a few more diverse shopping destinations, that would definitely increase business for everybody throughout the city.”
Frank L. Miller makes the 45-minute drive from Denton, Maryland, to the Dover Mall about once a week to take advantage of the tax-free shopping, go to the movies and eat in Dover restaurants.
While the retired school counselor prefers coming to Dover rather than messing with the traffic at the Annapolis Mall, which is about the same distance from his home, Miller said traffic congestion on U.S. 13 has gotten heavier in the past few years.
He believes a dedicated exit would help alleviate some of that congestion on U.S. 13, because even when people come from Del. 1, they still have to get to U.S. 13 and then go through three or more traffic lights (about 2.5 miles) to get to the mall.
“I’m surprised they haven’t done it a long time ago," he said. "Many people don’t even know the mall exists. They just shoot on by on Route 1. That would change with the toll road in place. More people would stop and businesses along U.S. 13 would probably benefit. Plus, the traffic congestion problems would be eased.”
But Paradee says the biggest reason to approve the toll road is it will help Dover Mall grow and give Christiana Mall and the Rehoboth Beach outlet stores a run for their money.
“There is a lot of interest by national stores, but many big box stores are concerned about direct access to the mall,” Paradee said. “Retailers have told us if we can secure a direct access off of SR 1 to the back of the mall, they would locate to Dover. That’s a win-win for all of us.”
Reach Jerry Smith at jsmith17@delawareonline.com. Follow him on Twitter at @JerrySmithTNJ.