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RAPID CITY, SD-Developers R.H. Johnson and LANE4 Property Group plan to break ground this fall on the Meadows of the Black Hills. Initial plans call for a 600,000-sf power specialty center with a variety of retailers, including Sam's Wholesale Club, the Home Depot, and Bed Bath and Beyond. The center, which is slated for completion by mid-2008, will also include a mix of fashion, specialty, hard goods and restaurant retailers, according to the Kansas City development team.
The project, which also has a lodging component, may eventually include an office component on as many as 215 acres. The site of the planned mixed-use development is at the northwest corner of Interstate 90 and Exit 60 in Rapid City, which serves as a popular gateway to Mount Rushmore and other tourist spots in the Black Hills. Designed as a regional destination, the Meadows of the Black Hills will serve not only Rapid City, but the surrounding 200-mile trade area and the estimated five million tourists who visit the area each year, Randy Brown, senior vice president of R.H. Johnson, says in a statement. The development team says that nearly 200,000 people live in the local trade area. Calls to R.H. Johnson and LANE4 seeking more information about the project were not returned.
The developers expect to submit a site plan application for the project in early February. They also plan to seek tax increment financing. The property is currently zoned for a commercial shopping center.
The location of the Meadows of the Black Hills puts it between Exit 60 and Macerich's Rushmore Mall. The 834,000-sf existing regional center is anchored by Herberger's, JC Penney, Sears, Scheels All Sport and Target. Another development team has plans for a large retail center east of the Rushmore Mall, according to Rapid City officials. There Midland Atlantic Properties plans to build Rushmore Crossing, which will comprise about 800,000 sf. Calls to the Cincinnati-based developer were not returned.
Brad Solon, a Rapid City building official, says that 2006 was a "banner year" for Rapid City, even though the city issued fewer permits than the previous year. In the first 11 months of last year, the total valuation for building permits was $162.6 million, up from $142 million for all of 2005 and $80 million for all of 1996. Housing starts, which peaked in 2005 mainly due to low interest rates, also continue to be strong, Solon says. In 2006 and 2004, about 330 homes were added, while more than 400 were added in 2005.
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