Cottonwood Mall site still in development, attracting national retailers

HOLLADAY — The 58-acre dirt slab where the Cottonwood Mall used to stand is still very much an active development site, with national retailers tuning in.

Information surrounding which retailers and how many have signed letters of intent for the project remains confidential, however, and timing for pending construction and visible movement at the site hinges largely on economic recovery, said Christopher Curry, vice president of development for the Howard Hughes Corporation.

"We're excited about the project and things are moving foward," he said Thursday.

Any progress is "behind the scenes," however, according to Holladay City Councilman James Palmer. Rampant rumors of the property being sold, being up for sale or that the developer isn't viable, are all false, he said.

"I hate the term shovel-ready, but that's what it is. At any moment, they could begin construction. … They could walk into our offices tomorrow and file for building permits, but it could also be another two years before they do that," Palmer said. "It all comes down to when recovery of the national retail sector happens."

The Dallas-based Howard Hughes Corporation, which was borne out of a failing General Growth Properties that previously owned the land, has already invested $50 million in site development where the mall used to be. An inherited development agreement stated that the reorganized company should have at least $226 million invested in the property by 2013, but Palmer said it is clear that will not happen.

In June, the council and participating tax entities agreed to extend the 20-year, 5 percent tax incentive for the Howard Hughes Corporation, to encourage further investment on the property. Otherwise, Palmer said, the city might have been left holding the bag.

"We wanted to assure them that we were behind their project and apparently, that has worked," he said. "It's ready to be built at a moment's notice."

The company has said it intends to build a small, master-planned community on the site — including a mix of retail, upscale housing and restaurant space — that will be 10 to 11 times larger than the previous mall. The $550-million project is one of 13 future developments for the Howard Hughes Corporation, planned in 10 different states.

Hughes, which only began operation a year ago, has acquired eight operating developments and four completed master-planned communities in 11 states. One of the operating properties owned by the company is Cottonwood Square, which is adjacent to the lot where Cottonwood Mall once stood.