Published March 2004

Tulalips OK deal
for outlet mall

By Mike Benbow
Herald Business Editor

Snohomish County will get a major new outlet mall in 2005, and the Tulalip Tribes will get increased economic security under an agreement approved in February with a New Jersey firm that operates 60 such shopping meccas.

The mall, to be developed and operated by the Chelsea Property Group of New Jersey, will have 100 to 120 designer and name-brand stores on 47 acres north of the new tribal casino at Quil Ceda Village, tribal officials said.

“This is the synergy we have wanted to create to make our casino a success and to make our tribe a success for generations to come,” said Herman Williams Jr., tribal chairman, as he and other board members signed the agreement. “This is very important to the tribe.”

Tribal officials hope that people going to the new casino will be attracted to the outlet mall, and vice versa, ensuring the success of both.

The lease agreement, which extends for 75 years, should initially bring the tribal government $1.2 million annually, Williams said.

The retail development, to be called Seattle Premium Outlets, is expected to provide about 300 jobs when construction begins this spring, including work for tribal members.

The mall, which is scheduled for completion in spring 2005, would create an estimated 800 full- and part-time jobs with an annual payroll of more than $15 million, tribal officials said.

Tribal board member Stan Jones Jr. called the agreement a “historical moment” for the tribe. The mall is a significant piece of what tribal officials hope will eventually become a major destination resort that includes a hotel, a theme or water park, a recreational vehicle park, a golf course, restaurants and other retail development.

The area already hosts a Wal-Mart, a Home Depot and other retailers.

Brad Stipe, a senior director of Chelsea Property Group, said he anticipates about 6 million people a year to visit the outlet mall.

He said he liked the Tulalip site because its proximity to I-5 gives it “tremendous visibility in an area with high traffic counts.”

“A lot of our customer base is drive-by traffic,” he noted.

Chelsea owns and operates outlet malls around the world, including the one at North Bend. Stipe declined to name specific stores for the company’s newest project, but he did say it will have tenants similar to North Bend’s, which include Nike, Dress Barn, Adidas, Black & Decker, Lenox, Samsonite and Gap.

Tulalip board member Mel Sheldon said the new mall is an important step for the tribes.

“This isn’t just a business development, but a diversity of the tribes’ assets,” he said. “It will hold our business park in good stead.”

Tribal officials have said a strong retail base is essential to help them achieve their goal of economic self-sufficiency because nobody is sure about the long-term stability of gambling revenues. Indeed, the casino recently laid off 240 of its 1,600 employees after revenue projections were lower than expected.

Sheldon said he expects the mall to provide an economic shot in the arm beyond the Tulalips and their business center.

“This should become more of a magnet for our entire area,” he said.

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