The $74 million Haigis Parkway project, anchored by the giant sporting-goods retailer Cabela’s, is one step closer to reality now that it received final approval from the Scarborough Town Council at its Dec. 20 meeting.
Though some details of the contract zone were not completed until the afternoon before the meeting, the final draft and the Haigis Parkway Tax Increment Financing District were unanimously approved by the council.
The project, which includes office buildings, a hotel, restaurants, a bank and other retail buildings, still has to return to the Scarborough Planning Board before completing its town review. The planning board’s next meeting is Monday, Jan. 8, at 7 p.m.
The council does not typically review new projects, but in the case of Cabela’s, exceptions in both the size of the store and its signage required a contract zone. The size of retail buildings is limited to 20,000 square feet along the Haigis Parkway. The 125,000-square-foot Cabela’s required council approval. The rest of the project, such as traffic, architecture and landscaping, were reviewed by the planning board.
“This was a little bit of a moving target until,” said acting town attorney Rob Crawford at the Dec. 20 council meeting. For the town to approve the project, said Crawford, it needed assurance that if Cabela’s ever vacated, the town would have final say on a replacement. The town also wanted the contract to require that the developers would build all of the proposed buildings – not just Cabela’s.
The developers, New England Expedition, and the town worked on those contract details up until the last minute, said Crawford. In the final, council-approved contract, if Cabela’s should leave within the first five years, the town has the power to veto the substitute store.
“I think we all recognize that Cabela’s is the draw,” said Crawford.
The developer is also required to show substantial construction of the entire project within two years, with the exception of five buildings. Those five, said Crawford, are buildings such as the restaurants, which can only be designed and constructed after a tenant is secured. Those five buildings, said Crawford, would have to go back to the planning board for review.
However, said Crawford, Cabela’s has agreed to a 25-year lease with the developers with an option to renew that for another 25 years. Cabela’s itself, he added, will be funding and building the store. The developers also agreed with Cabela’s to have the site work done and turned over to the store in time for an opening date of the summer of 2008.
Traffic again was an issue. According to Crawford, additional signs directing visitors to take the Haigis Parkway – as opposed to Payne Road – could be added to the contract at a later date.
While Councilor Sylvia Most said she was aware traffic is the purview of the planning board, she expressed concerns with the amount of expected traffic.
“It’s really up for grabs what’s going to happen with traffic down the line,” said Most. “We need to have money in reserve once the reality is on the ground.” Though worried about the number of cars traveling through town, Most added that she’s aware of a large amount of public support for the project.
“Traffic will continue to be a concern for any development in this area,” added Most. “How we handle this one will set the precedent.”
An idea proposed by the council was to conduct a new traffic study once Cabela’s is open to determine the actual impact of traffic. According to Jeff Messer, council chairman, the contract can be amended once the traffic is actually measured.
“I, too, have heard only positive comments from the public,” said Councilor Carol Rancourt. “But I also have fears. I’m aware it will create a great deal of change – our puny little plans for those intersections need to be worked on,” said Rancourt of the council’s efforts to improve the intersections at both Oak Hill and Dunstan Corner.
Rancourt also said that Tax Increment Financing for specific businesses are unfair.
“But I’ve satisfied myself that that’s not the case,” she added.
The Haigis Parkway Tax Increment Financing District, or TIF, would give $8.25 million back to the developers for traffic and infrastructure improvements throughout the town. The money will go to the developers, is not designated for any specific purpose and could be used on anything from the buildings to improving roads.
TIFs are often used by communities to help developers with the costs of improving infrastructure, such as roads and sewers, needed to support the project. The new taxes generated by the increased value of the property are returned to the developer over a number of years.
Over a period of 10 years, the TIF will pay the developers $825,000 per year to help with the costs of adding things like extra lanes to Payne Road, new intersections and possibly improvements to both Dunstan Corner and Oak Hill.
“When we look at the overall scope of the Haigis Parkway,” said Messer, “this project will jump-start the parkway.”
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