The contract commits the city to make various infrastructureimprovements, acquire adjacent property on which Prime will buildparking and reimburse the company for some development costs. Inreturn the city will earn more than $3 million a year in sales andproperty taxes, and will benefit from the addition of about 500 newjobs. Grand Prairie economic development director Bob O'Neal callsthe deal a win-win situation. "We get a great developer with greattenants," he tells GlobeSt.com. "We get destination retail, whichhelps our tax base and our residents get a great place to shop. Wewin on all fronts."

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The site is located in a TIF district formed in 1999 thatstretches from Texas 360 to Texas 161. Tax revenue generated byhigher property values due to new development goes to financepublic improvements within the district. "We're looking at theproject as an important source of sales-tax growth," says O'Neal."Our tax base is heavily residential. This will relieve the burdenon local homeowners and allow us to provide improved services."

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As for Prime, Bruce Zalaznick, the company's EVP of real estate,lauds the location's visibility, demographics and touristpotential. "That's what's going to make this a better-than-averageopportunity," he says. "The Dallas-Fort Worth Metroplex isobviously a very robust market, and Grand Prairie is one of thetrue growth areas of the Metroplex. We're very lucky to bethere."

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The project will feature 120 outlet stores, a food court,several restaurant pads and 2,700 parking spaces. No tenants havebeen signed, but Zalaznick reports several deals are in discussionand says tenant interest has been strong. The tenant mix isexpected to be similar to that of the company's project in SanMarcos, which includes Nieman Marcus Last Call, Giorgio ArmaniGeneral Store and a Sak's Off 5th stores.

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O'Neal expects the mall to catalyze additional retaildevelopment in the area and increase the city's tourist business,attracting three million to five million people a year. Accordingto Grand Prairie Mayor Charles England, the city already draws morethan six million visitors a year to Lone Star Park, Nokia Theatre,Joe Pool Lake and other tourist venues. A $16-million stadium for aminor league baseball team, the Airhogs, is in construction.

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The project will be Tarrant County's second outlet mall. Thefirst is Grapevine Mills, a 1.6-million-sf center by the MillsProperties division of Indianapolis-based Simon Property GroupInc., which opened in 1997 in Grapevine. It joins another new GrandPrairie retail project, Lake Prairie Towne Crossing, a 576,583-sfpower center nearing completion at Camp Wisdom Road and StateHighway 360. Developed by Kimco Developers Inc. of Los Angeles andLisle, IL, the already opened project includes SuperTarget, HomeDepot, Marshall's, Ross, PetCo and 24-Hour Fitness.

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A subsidiary of New York City's Lightstone Group LLC, thecompany has a portfolio of retail centers totaling 15 million sf.Last year it announced an aggressive 24-month development agendainvolving construction of nearly 1.5 million sf by the end of2009.

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