Woodbury Common Reveals Significant Expansion Plans
Real Estate In-Depth | May 14, 2019
CENTRAL VALLEY—On May 9, Woodbury Common Premium Outlets outlined new details of its proposed expansion that will bolster tourism and job creation for the region. The center’s plans were unveiled at the Orange County Chamber of Commerce monthly breakfast held at Woodbury Common’s Market Hall.
Woodbury Common has proposed plans that include: approximately 165,000 square feet of additional retail space; an increase in parking with the addition of a five-level parking garage and expansion of the existing four-level parking garage. In total, more than 2,140 new parking spaces will be created.
Other new development elements include pads for two 120-room hotels, a spa facility to serve patrons of Woodbury Common Premium Outlets, 37,000 square feet of new restaurant space, as well as upgraded customer amenities and sustainability initiatives.
At the breakfast, Woodbury Common representatives cited data from AKRF, Inc., a leading environmental, planning and engineering consulting firm, predicting enormous economic spinoffs from the center’s proposed plans. The economic benefits of the proposed renovations include the creation of 998 additional jobs at the center as well as approximately 400 indirect and induced jobs and more than 1,600 construction jobs over the two-year project.
The proposed expansion will generate both direct and indirect tax revenues, including an additional $22.51 million in retail sales taxes annually including $12.10 million for Orange County, $9.2 million for New York State and $1.21 million for MTA during operations.
Woodbury Common, which is owned by Simon, attracts more than 13 million visitors annually. Home to more than 250 highly sought-after retailers offering daily savings of up to 65%, the center has become a major tourism driver for the region and New York State.
The outlet center did not divulge any financial details about the expansion, including the estimated cost of the new project.
“New projects such as this are one of the reasons why economic development in Orange County continues to flourish,” said Orange County Executive Steven Neuhaus in a prepared statement. “The thriving tourism scene offers visitors and residents access to world-class shopping experiences, unparalleled dining and unique family-friendly attractions that can’t be found anywhere else in the state.”
“Woodbury Common is an internationally recognized brand that draws outside dollars into Orange County. The generation of sales and property tax alone, infused into our local economy, even during the worst of economic times, has been a cash-cow,” said Maureen Halahan, president and CEO of The Orange County Partnership. “Orange County has never been dependent upon one industry but rather a diverse cluster of industrial, office, retail and tourism destination. Woodbury Common continues to be a leader in the retail/tourism industry, expanding jobs and overflowing an abundance of ripple effect spending. Simon is the gift that keeps giving.”
“The benefits of this project will extend beyond Woodbury Common itself,” said Lynn Allen Cione, Orange County Chamber of Commerce president and CEO. “The creation of nearly 1,000 new jobs offers employment opportunities for local residents, the increased property value and sales tax will generate additional revenue at the county and state levels, and the increased tourism to the region will create ancillary benefits for neighboring businesses. I am excited to see the positive impact these plans will have on Orange County in the coming years.”
“The proposed expansion of Woodbury Common is an exciting venture for the entire county,” said Amanda Dana, Orange County Tourism Director. “With each phase of development, the center has continued to grow tourism in the region and the state by providing a world-class shopping experience and elevated dining options. Adding a lodging and spa component to the campus is a critical piece that will ultimately transition this premier shopping location to a tourism destination. We are delighted to be working closely with the Woodbury Common management team and know the details shared today stand to offer tremendous benefits to Orange County, its residents and its visitors.”
This is the fourth expansion since the property first opened in 1985. The latest redevelopment, which was completed in 2018, included an additional 60,000 square feet of retail space, a full renovation, four-story parking garage and Market Hall, an entrance building with a new food court, resulting in a total of more than 250 stores and 912,000 square feet. That project was estimated to have cost well in excess of $100 million.
Nearby the property construction work continues on a $150-million road improvement project being undertaken by the New York State Department of Transportation that will include new and improved access to the retail property at Exit 131 of Route 17.
Woodbury Common Premium Outlets currently features 250 stores including Tory Burch, Celine, Nike, Bottega Veneta, Michael Kors, Burberry, Coach, The North Face and more.
Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations. The global Simon Premium Outlets portfolio includes properties located in the United States, Puerto Rico, Canada, Japan, Malaysia, Mexico and South Korea. In addition to Woodbury Common, the portfolio also includes the Orlando Premium Outlets, Desert Hills (Palm Springs), Las Vegas Premium Outlets and Wrentham Village Premium Outlets (Boston).