40 More Stores Coming to Outlet Mall!

By CLARISSA MARTINEZ

MERCEDES - Rio Grande Valley Premium Outlets mall will add a second phase of stores seven months after the stores opened.

City officials said a third phase with even more stores is expected in the future.
The outlet mall announced plans for a 150,000-square-foot expansion on the north side of the
existing stores, which will provide space for an additional 40 stores plus parking, bringing the total to 150 stores.

Construction on the second phase will begin in June, and bring the shopping center to 550,000 square feet, according to a news release from Chelsea Property Group, the mall owner.
Ruben "Chano" Guajardo, city commissioner, said the second phase of the outlet construction is right on schedule.

"It's exciting for Mercedes and shows that the company has confidence in the community," Guajardo said. "They moved on with Phase 2 because they are satisfied with how the outlets have been doing."

City Manager Ricardo Garcia said that along with construction, the expansion will include infrastructure such as sewer and water lines.

The city's contract with the mall owners includes three phases of construction. The city will return half of the sales taxes generated by the outlet center to Chelsea Property Group for the next 10 years, Garcia said.

Chelsea originally built on 54 acres that it purchased for Phase I, Garcia said. Now, Chelsea has bought an additional 23 acres.

According to the news release, the new buildings will be adjacent to the existing stores and will keep the center's village architectural design.

The new stores should open within a year, Garcia said.

Guajardo said he expects the expansion to also attract new businesses.

"The next phases will allow individuals out there to be confident in building in Mercedes," Guajardo said. "That makes it a lot easier for others to build here."

City Commissioner Leonard Garcia Jr. said at this pace, the Mercedes outlets could eventually compete with San Marcos for international tourism.

The two outlet shopping centers in San Marcos, between Austin and San Antonio, have more than 240 stores.

"The amount of money generated has doubled the expectations," the commissioner said about the outlets here. "The city is becoming a magnet for other businesses."

In the news release, Michele Rothstein, senior vice president of marketing for Chelsea Property Group, said the company is thrilled to support community growth.

"The expansion of the center will enable us to enhance these benefits," Rothstein said in the release.

The opening date and list of stores will be announced at a later date, the news release said.
Since the November grand opening, a Chili's Grill and Bar has opened next to the outlets and a La Quinta Inn & Suites is under construction.