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Changes for Louisa: Commercial developments will turn growing area into a hub of activity
[May 20, 2007]

Changes for Louisa: Commercial developments will turn growing area into a hub of activity


(Richmond Times-Dispatch (VA) (KRT) Via Thomson Dialog NewsEdge) May 20--ZION CROSSROADS To travelers, this rural community consists of three gas stations and three fast-food restaurants.

But to developers, it's now being seen as prime space for a regional shopping hub.

And that means shopping for much more than just gas and burgers in this southern Louisa County crossroads where Interstate 64 and U.S. 250 intersect with U.S. 15.

Plans call for a Wal-Mart Supercenter, a Lowe's home improvement store and the Merchants Walk at Zion Crossroads shopping center. These projects would bring more than 800,000 square feet of retail space to the crossroads in the next few years.



A Best Western hotel is nearing completion. Nearby, construction is under way on the 1,200-home golf course community called Spring Creek, which will include retail and office space.

These developments will, in the next few years, transform this rural gas stop 45 minutes west of Richmond and 20 minutes east of Charlottesville into a suburban-style retail, residential and commercial hub.


And more developers are knocking on the door, county officials said.

One of the area's fastest-growing localities, Louisa is home to about 31,200 residents. The county's population grew 22 percent between 2000 and 2006, and is expected to jump another 37 percent by 2020.

Zion Crossroads already has some industry, mainly along U.S. 250 south of I-64. Wal-Mart, for instance operates a 880,000-square-foot grocery distribution center directly behind where its store is planned.

The area slated for the new development near the I-64 interchange is uninhabited and land surrounding it is rural and sparsely populated.

Still, for many reasons, developers consider it an ideal commercial spot.

"It provides a gateway to Louisa County, so that all those residents can shop in that area, where you're seeing growth," said Dan Hargett, a partner in the Richmond-based Rebkee Co., which is developing the Wal-Mart and Lowe's site. "And it's becoming a regional hub to serve new residents in between eastern Charlottesville and western Richmond."

When opened, the Wal-Mart and Lowe's will add as many as 500 jobs to the area, Hargett said. Construction should begin on those stores in the next several months and be completed in fall 2008.

Louisa officials have planned this area for commercial growth, County Administrator Lee Lintecum said.

The Board of Supervisors recently awarded an $8.6 million contract to expand by seven-fold the sewage plant that serves the area. The plant will soon be capable of handling 700,000 gallons of wastewater per day. The county will incur debt to fund the expansion.

"The board's investment is beginning to reap the benefits," he said.

Land Capital Group Inc., the real estate development firm based in Park City, Utah, that plans to build the Merchants Walk at Zion Crossroads development, believes the area is ripe for change.

The project calls for 1.025 million square feet of space, including 650,000 square feet for a shopping center, restaurants and entertainment uses. The developer envisions the center primarily as outlet stores.

But the center also will include some upscale, branded retailers and space for a high-end grocery store and other service-oriented retailers. The company has not released a tenant list.

Construction on the first phase, which primarily would be the outlet center, would begin this year and be ready by August 2008.

In addition to the retail space, Land Capital is planning 225,000 square feet of office space and about 150,000 square feet for a hotel and meeting space.

Randy Warren of RW Development, an affiliate developer of Land Capital Group involved with the project, cites growth between Charlottesville and Richmond as one of many reasons that make a shopping center viable.

The area should draw from the residential growth in Fluvanna, Spotsylvania and Orange counties as well as from the spread of Washington exurbs down U.S. 29 and U.S. 15, Warren said.

According to the latest studies from the Virginia Department of Transportation, traffic volume in the area reaches as high as 31,000 vehicles per day.

The outlet mall format should attract some of the 4.5-plus million tourists passing through the area every year on their way to the Shenandoah Valley and Blue Ridge to the west and the horse country to the north and west, he said.

"Any one of those things [alone] would not be sufficient for this scale of development," Warren said. "However, when you look at all of those things [together], we've got a strong market condition that will enable us to build and be successful in that area of Louisa County."

The county can use the $6 million in tax revenues government officials estimate the new developments could generate -- especially for public school needs.

The state projects the county will grow nearly 37 percent to 42,000 residents by 2020, which will compel Louisa to build two elementary schools and a high school in the next 15 years. All that building is projected to cost about $138 million.

Because the Zion Crossroads area was previously zoned for development, the announced commercial projects didn't need specific approvals from the county Planning Commission or Board of Supervisors.

Residents and business owners in the area who spoke about the coming development supported it. Several business owners think they'll benefit from the increased traffic.

Some, though, expressed concerns about the traffic on U.S. 15, which is two lanes wide slightly north and south of the I-64 interchange. There are no current plans to widen the road.

Harold Gowdy, who lives in a home two miles north of the interstate, said he'll be glad to be able to shop without traveling 20 minutes to Charlottesville, 45 minutes to Short Pump or an hour to Fredericksburg.

"It'll be good for the area as long as they widen the highway so traffic won't be congested," Gowdy said.

Michele Pascarella and her father, Victor Pascarella, run Valley Timber Sales about a half-mile north of the interchange. Michele Pascarella also thinks about the development like a consumer.

She commutes from Madison County 45 minutes to the north, and shopping in Charlottesville adds another 40 minutes to her drive home, she said.

However, she's afraid that Virginia's transportation spending won't allow for the road improvements the development demands.

"It's great to grow, but you do need the infrastructure," she said.

And while the development is good for local consumers and county tax revenues, the county does want the projects done tastefully, said Darren Coffey, director of community development.

So far, the retailers have been compliant, he said.

For instance, Wal-Mart agreed to a brick facade while the Lowe's store will have more detailed exterior design. The developers of the Merchants Walk plan to combine a variety of green building concepts, including using recycled building materials, solar panels, a rainwater collection system to reduce water run-off.

"They're going to help us create a sense of place and have nice, attractive development," Coffey said.

Contact staff writer Calvin R. Trice at [email protected] or (434) 979-0497.

Zion Crossroads developments Here are some of the projects planned:

Best Western hotel: 80-room; Nearing completion

Wal-Mart Supercenter: 176,000 square feet; set to open in fall 2008

Lowe's: 120,000 square feet; scheduled to open in fall 2008.

Merchants Walk at Zion Crossroads: 1.025 million square feet of space, including 650,000 square feet for a shopping center (primarily outlet stores), restaurants and entertainment uses; 225,000 square feet of office space and about 150,000 square feet for a hotel; scheduled to open August 2008.

Spring Creek: 1,200-home golf course community

Copyright (c) 2007, Richmond Times-Dispatch, Va.
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