The project is supposed to include seven retail zones (includingan outlet mall), a hotel with indoor and outdoor water park and asmaller mixed-use portion along the Grindstone River. The projectwill have up to 60 stores with three large anchors, says JerrySchultz with the development corporation, but he says his firm isstarting small. The first phase will only consist of two retailstrips of about 15,000 sf total, as well as some fast-foodrestaurants and a convenience store. "With the economy the way itis, we're not going to jump in with both feet," he tellsGlobeSt.com. "It's tough right now, but you're starting to see somemovement. It was slow from May through July, everybody was justsitting on what they have. Only in the past month and a half havewe started to hear businesses talk about expanding again."

He says the property should have good demand from all the casinocustomers. "We get four million cars going by the place each year,and the area is also on the direct route for vacationers for bothnorthwestern Wisconsin and northeastern Minnesota," Schultzsays.

Final negotiations are going on right now for the hotel, an"international firm," Schultz says. He also says the 15,000 sf isabout 50% occupied, and has hired Diehl and Partners LLC to leasethe retail portion and sell out-lots at a rate of $16 per sf."We're also talking with a major sporting goods store as ananchor," one of three planned big-box stores, Schultz says. Also,he's not going to build the outlet mall portion, and is in talkswith companies such as Chelsea Premium Outlets, the division ofSimon Property Group that also runs the Albertville Premium Outletsabout an hour to the south, closer to Minneapolis.