Developed by The Boyer Co., the Southgate Center, located at about 1860 South just off University Avenue and Interstate 15, will have 459,000 square feet of retail space. It will cost more than $80 million to develop. The complex will be anchored by a Target store and also will include a PetÂSmart, Sports Authority, Circuit City and 225,00 square feet of office space. The developer will purchase the land from the city of Provo. The city, in turn, will use part of that cash to prepare the property for development.
The city will use another portion of the sale money to move wetlands and relocate part of a 6,900-yard golf course.
Provo will build new and higher quality wetlands near Utah Lake, said Billings. The city also will move several holes at The Reserve at East Bay Golf Course and construct a signature island golf hole.
The course is expected to remain open for 18-hole play throughout the project's two development phases, though a nine-hole executive course will be discontinued as soon as construction begins before the end of the year.
"This really is a hole-in-one," Billings said of the new project. "Everyone benefits from this project - retail shoppers, taxpayers and golfers. Southgate will provide national retail shopping opportunities close to home."
By relocating the golf course using proceeds from the sale, the city will make way for a project that will generate both sales and property taxes, said Mark Pace, senior partner with The Boyer Co.
City Council Chairman George Stewart said the Southgate Center will generate more than $125 million in retail sales, which could translate into more than $1 million in sales-tax money for the city.
"Now we can buy those goods in Provo and not have to go on a busy road to shop in our sister city [Orem]," Stewart said.
"This will generate more retail for the [Provo Towne Center] mall and other retail establishments in this area."
Construction on the Southgate Center is expected to begin in March 2008, and it is scheduled to open in July 2009. The major retail anchor is to open in May 2009.
sgehrke@sltrib.com
* Southgate Center: Is scheduled to come before the Provo City Council for study Tuesday and action Dec. 4.
* Golf: The executive nine holes on The Reserve at East Bay Golf Course will be closed immediately to allow for reconfiguration.
* Construction: Is scheduled to begin in March, and the center is scheduled to open in July 2009.
