Outlet Center Opens Today North of Washington, Pa.
By CASEY JUNKINSArticle Photos
WASHINGTON, Pa. - Calvin Klein, Tommy Hilfiger, Gap and Nike are just a few of the brands available at the new Tanger Outlet Center that opens today near The Meadows Racetrack and Casino in Washington, Pa.
And although the new shopping destination is located only 25 miles east of The Highlands, Ohio County Administrator Greg Stewart does not believe Tanger will be a direct competitor to the Triadelphia retail center.
A grand opening ceremony will be held for Tanger at 11 a.m. today featuring former Pittsburgh Steelers' star running back Jerome Bettis.
"Our new $90 million Tanger Outlet Center is a major tourism attraction for the Pittsburgh area and the state of Pennsylvania ... ," Steven B. Tanger, president and chief operating officer of Tanger Factory Outlet Centers Inc., said in a release. "The Tanger Outlets near Pittsburgh will welcome millions of brand name bargain hunters from throughout Pennsylvania, Ohio and the West Virginia region."
Tanger operates 31 shopping centers in 22 states.
The company estimates the Washington, Pa., center will draw 4.5 million annual visitors to the 370,238-square-foot plaza. The plaza is an open-air venue, but it has covered north and south walkways leading to its stores, which are expected to number 75 once all spaces are filled.
In addition to Calvin Klein, Tommy Hilfiger, Gap and Nike, Tanger features American Eagle Outfitters, Banana Republic Factory Store, Brooks Brothers Factory Store, Children's Place, Coach Factory Store, Harry and David, Nine West Outlet, Skechers, Timberland Factory Store, Wilson's Leather Outlet, Adidas and Reebok and many others. Shoppers can also enjoy a food court at Tanger.
Tanger shares four retailers with The Highlands in Old Navy, Justice, Dress Barn and rue21.
Though Stewart acknowledges any new retail center located only 25 miles from The Highlands could mean competition for the Ohio County destination, he does not see Tanger having much of a negative impact on The Highlands.
"We are not overly concerned about them (Tanger Outlets) hurting our business at The Highlands. In fact, it may help us bring in some more retailers who may have wanted to go up there (Washington area) because now there is competition up there," he said.
Stewart said that about 60 percent of customers at The Highlands come from Wheeling and areas to the west, while 40 percent come from areas to the east, such as Pennsylvania.
"We bring in a lot of people from Pennsylvania, but we also bring in a lot of people from West Virginia and Ohio, too," he said.
Stewart noted that The Highlands offers a mix of both destination retail and everyday retail with its collection of Cabela's, Wal-Mart, Target, J.C. Penney, Kohl's and others.
"I think a place like that (Tanger) is more of a place where people will go every month or every couple of months. What we are doing is creating a place to draw people on more of a weekly or even daily basis with Wal-Mart, Target and the others, " he said.
Stewart added that Cabela's and the planned Wild Escape theme park will also allow The Highlands to draw customers from long distances.
Currently, county officials are waiting for the U.S. Army Corps of Engineers to issue earthwork permits for Phase V of The Highlands development, where they hope Wild Escape will be built. Stewart also hopes to receive the Phase V permit so the West Virginia Department of Transportation can construct a new Interstate 70 interchange to access The Highlands near the bottom of Two Mile Hill.
"If we can get that new ramp, we should be in good shape because people tell me that one of the best things about our development is that everything is easily accessible once you get on" Cabela Drive, he said.
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WVSonDC
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08-30-08 3:51 PM
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PoorRichard: You are a wild! You must be a financial analyst during the work week; and a hardcore blogger after hours. Either that, or your the most educated citizen/voter in Ohio County.
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PoorRichard
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08-30-08 2:52 PM
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WVSonDC, you’re right about the financing. But revenue from sales taxes at the Highlands doesn’t go to the State of West Virginia. Instead, it goes into a special state subaccount for use in development projects by Ohio County. And the revenue last month from the sales taxes was used to make payments for certain special district excise (sales) tax revenue bonds issued by the Ohio County Commission. According to the audit report for the Ohio County Commission in 2007, the value of the outstanding special district excise (sales) tax revenue bonds was $99,000,000 as of June 30, 2007. That is in addition to the outstanding property tax TIF revenue bonds in the amount of $9,300,000. The TIF revenue bonds are apparently being serviced by the revenue from the property taxes at the Highlands which was reported as $610,097 in fiscal year 2007. As of June 30, 2007, the value of the outstanding sales and property tax revenue bonds was $108,300,000.
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WVSonDC
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08-30-08 2:07 PM
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Elizabeth: Regarding whether or not Tenants are doing well, I only spoke in regard to Cabelas performance. I would think your brother in law may concur with me that Cabelas has been disappointed in there performance to date.
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WVSonDC
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08-30-08 2:05 PM
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Elizabeth: Regarding Sears...I am not sure why, at this point in there corporate life-cycle, why any landlord would want Sears. Secondly, it would behoove the Highlands to pursue Tenants that are not already in the trade area. There are only so many 'rooftops' in the Ohio Valley and I think the jury is still out on determining whether or not the market can support the number of duplicative retailers at the Highlands (Lowe's, WalMart, etc.). Obviously, this is my professional opinion and is not a knock on the market.
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WVSonDC
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08-30-08 2:01 PM
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Elizabeth: 20 years in the business and have done in excess of 400 transactions in approx. 30 states. I am very familiar with the subject matter. I don't doubt your comments, but I stand by mine. These retailers were provided economic deal structures that are not similar to those throughout the country. I am positive they were provided with substantial Tenant Improvement Allowances, Early Termination Clauses tied to Sales Volume Performances and Extremely Competitive Rents or Extended Free Rent Periods that would greatly reduce the Effective Rent. If your relative was unable to get these favorable economic deal points for his tenant/employer, then he should be negotiating harder for his tenant. Tell him I'll see him next week in Columbus, OH.
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WVSonDC
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08-30-08 1:54 PM
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PoorRichard: Yes, that is better. But as I understand it, the Highlands was a TIF designated project which I believe means it was partially financed by the state to be paid back by the county from tax revenue. Some,or a lot of this revenue from sales tax may be, and I'm not sure, but may be going back to the state to repay the financing.
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UNCOMMONSENSE
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08-30-08 10:47 AM
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I have been to MANY outlet malls and have YET to find ANY bargains. These places just pray on the weak minded consumers that have absolutely no idea what a GOOD price is OR where to find it!
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PoorRichard
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08-30-08 10:32 AM
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WVSonDC, you may be right. But one thing to keep in mind. The audit report was for sales tax revenue through June 30, 2007. We don’t know the tax receipts since that time. The County keeps their cards very close to the vest. The audit report for 2008 probably won’t be online until March 2009. We do have another source. And their sales tax revenue may have been $900,000 in July 2008. Based on a 6% sales tax (and remember non-prepared food is now taxed at 3%), that’s around $15,000,000 in gross sales last month at the Highlands. Or maybe $180,000,000 per year. Isn’t that better?
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elizabeth45
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08-30-08 10:22 AM
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WVSONDC, which I think the DC stands for Disoriented and Confused. Not thin skinned, actually am familiar with a deal up at the Highlands. My brother in law is the V.P. of real estate for a very big retailer. He has a 5 state area that he does "deals" in. W.V. is one of them. He did a deal up at the Highlands. He laughed when i forwarded your comments! The deal that they did at the Highlands, is similar to deals they do throughout the U.S. and by the way they are doing extremely well at the Highlands. There are alot of people here in town that are tired of people like you.People who pretend to be in the "know" and in reality ,know "absolutely nothing". The industry is small, my brother in law agrees, he would like to know what retailer you work for? By the way, if there is no business risk for a tenant to be at the Highlands and the rents are incredibly low and they are throwing TONS OF CASH, would it not be a smart business decision for Sears to be at t
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WVSonDC
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08-30-08 9:52 AM
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PoorRichard: I will get you started...the average Super WalMart will do about $100 Million per year. The range is between $50 Million for poor performers and $150-$170 for very strong performers.
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WVSonDC
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08-30-08 9:49 AM
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PoorRichard: You present the figure of $100 Million dollars as if it is a huge success. You have a WalMart at the Highlands, correct? I suggest you do more website research and get back to me on what you discover to be the average WalMart store's sales volume. Then, add Cabelas, Lowe's, Target and the rest of the retailers and restaurants at the Highlands that were open and operating in 2007 and tell me if you are still impressed with your $100 Million figure.
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WVSonDC
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08-30-08 9:44 AM
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Elizabeth: A few years ago, Sears acquired KMart in an effort to rescue KMart and themselves; thinking that 1 + 1 would equal 3. Unfortunately, the acquisition has not gone well. Sears is not actively looking for new opportunities. Quite the opposite, they have been closing non-performing stores. As it pertains to my knowledge of store performance and the structure of real estate deals at the Highlands; the retail real estate industry is a rather small fraternity. It does not take much effort or 'insider' interaction to know what is going on. Information is shared, sometimes rather freely. P.S. I never said that I knew Cabelas sales figures; however, I am aware that the sales performance has been substantially below their internal sales projections. Elizabeth: May I ask why you seem to have such 'thin skin' on this subject matter. Are you actively involved in the project?
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PoorRichard
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08-30-08 8:42 AM
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They say, proof is in the pudding. Read the audits for yourselves. Go to the State Auditor’s web site. Google: wv state auditor. Click on “West Virginia State Auditor’s Office.” Click “View & Download Audits” under the red “Chief Inspector” tab on the right side of the Auditor’s home page. Search for Ohio County. Click on “Report Name” at the top right hand side. Go to page 2. Voila!
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PoorRichard
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08-30-08 8:17 AM
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Elizabeth45, here’s something for you. The audit report for the Ohio County Development Authority in 2007 is also online at the State Auditor’s web site. It includes a list of all the retailers the County is talking with about coming to the Highlands in 2008 and 2009. Sears is on the list. So is Ann Taylor, Talbots, New York & Co, Victoria’s Secret and Banana Republic. For the guys, there’s a Harley Davidson Shop and a John Deere Mega Store. The list goes on and on and on.
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PoorRichard
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08-30-08 8:02 AM
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Atoddh, here’s something interesting. The audit report for the Ohio County Commission in 2007 is online at the State Auditor’s web site. It says the County collected sales taxes from the Special Excise (Sales Tax) District at the Highlands in the amount of $6,150,739. That was for the fiscal year ending June 30, 2007. Based on a 6% sales tax, that’s around $100,000,000 in gross sales at the Highlands. Isn’t that real money?
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elizabeth45
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08-30-08 7:15 AM
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WVSONDC, it seems obvious to me that if Cabelas is sharing their sales numbers with you and all of the tenants are talking to you about the "deals" that they got up at the Highlands, it would be in your best interest to get on the phone with other tenants and try to bring them to the Highlands. From what you have written, sounds like a monkey could do a deal up there. Here is your opportunity to probably do your first retail deal. P.S. I would start at OV Mall, I hear that is where they are taking all of the tenants from anyway!!! Could you start with SEARS? It would be real nice not to have to drive to St.Clairsville anymore!!
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WVSonDC
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08-29-08 11:34 PM
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atoddh: You imply in your comments that Cabelas has been some sort of success. I would ask that you speak with their operations department and real estate department for the real insight. This store has been a complete disaster and disappointment for Cabelas. Sales volumes are not holding up anywhere near projected levels. Cabelas, as a company, has re-tooled their entire site selection strategy based on the debacle that is the Highlands location.
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WVSonDC
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08-29-08 11:30 PM
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Elizabeth: Why do you think these strong national retailers came to your little town and opened a store out in the middle of nowhere? Didn't that ever strike you as being a bit odd? Well Elizabeth, Let me enlighten you: Those retailers came to the Highlands because there is absolutely no business risk to them in doing so. They were provided favorable lease deals, extremely and absurdly low rental rates, tons of cash up front to build out there stores so that they have literally 'no skin in the game'. They even have, what is referred to in the business, as 'kick-out' clauses. Meaning, in a few years, if there sales volumes are not at certain pre-determined levels, then they can close and leave without penalty. Now Elizabeth; Who do you think paid for all of this? You and your fellow Ohio County tax payers.
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atoddh
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08-29-08 10:07 PM
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elizabeth:The Highlands is diluting the former hold the OVM had on area retail.One important anchor has defected already:J.C.Penny.As the region declines,ages and continues to lose population the total retail spent will drop. The Highlands will be in the best position to flourish.The area probably can not sustain two major retail operations.OVM will decline. The recruitment of Cabellas as an anchor opened the door for Highlands. The County Commission should - and may - now focus on backing new manufacturing starts with well paid skilled jobs: using their profits from The Highlands.The loss of manufacturing jobs is the underlying problem in the Wheeling area and the reason for a 50% decline in population.
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elizabeth45
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08-29-08 9:12 PM
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If you look at OV Mall, the Highlands did not steal the tenants away. Best Buy/TJMaxx/Books A Million / RUe 21/Justice for Girls/Kohl's/ Dress Barn/Fashion Bug/ Bed Bath and Beyond/ Michaels/Marquee Theater,/Olive Garden/Cheddars, I do not ever recall seeing them ever at OV MALL. What tenants did they steal?
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elizabeth45
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08-29-08 9:04 PM
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I am constantly amazed at all of the experts in this community. Now we have experts who know the sales revenues of Cabelas. The County has done an amazing job with the Highlands. They have brought some of the best retailers to our town and have been able to do this in a bad economy. The biggest difference one can see between the County and an "experienced developer" is that the County actually cars about what is going on in this community and how the development will affect it. I challenge you to try and get a national retailer to 1. Talk to you, but 2. actually do a deal with them, then times that by over 30 deals which the County has done at the Highlands. At that point you would have every right to criticize/praise or give advice. Until then, we should all stick to our day jobs and let the County continue to make the Highlands one of the brightest spots in Wheeling!
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atoddh
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08-29-08 8:06 PM
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black: Most of the gaming patrons at W Downs and Mountaineer are not locals.Many spend the night.They buy drinks,food,lodging ,gas and perhaps some retail.All of this creates a local WV payroll that would not otherwise exist. The Washington development-and the new Downtown Pittsburg Casino - are even more comprehensive and accordinly will be more attractive to more people. They are threats to WV Northern Panhandle tourism. To survive WV will have to offer more and better features to the out of state gaming patron. A part of this will be high quality dogs and horses. The Ohio Valley desperately needs some new manufacturing initiatives as well. Oglebay Resort is a real plus for tourism. The style of non-profit development at Oglebay can not,however,be applied to Downtown and has not worked. You correctly point out that The Highlands is simply taking away local business from OV Mall. Cabella is ,however, a tourist attraction.
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WVSonDC
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08-29-08 7:01 PM
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Need: Not sure what you mean by 'talk a lot of talk'. What statement have I made that you wish to debate? I am prepared to substantiate any position I have taken on this subject.
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Blackrock
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08-29-08 6:55 PM
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Atoodd, not in this area. Gaming doesn't return anything to the community. It is a tax on the poor. In an area such as ours, new retail development just steals customers away from established retailers. Nothing is gained in either case.
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atoddh
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08-29-08 4:34 PM
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Black: Gaming in combination with retail of this nature are tourism products.In Las Vegas, for example, very elaborate retail developments have been positioned with the casinos.This gives the non-gaming spouse something to do and is an additional profit center along with food,lodging and entertainment.That means income from racing,machines,tables,food,rooms, shows + retail. The threat to Wheeling is that the Washington and Downtown casino-retail developments will drain patrons from Wheeling Downs. Burning:the Downtown project failure was the result of the parties doing the project.This Washington development - adjacent to The Meadows - demonstrates the concept is feasible.As long as the current "economic development" regime is in place in Wheeling,projects will not happen. The County Commission is different.They were not a part of the "Victorian Mall" or the "Outlet Mall" prior to that. It is unlikeley the Outlet concept will be possible in the Wheel
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