Attention big-box shoppers in Red Deer: You will soon need a bigger shopping cart.

A new wave of retailers, including Best Buy, Linens ’n Things, HomeSense, Sears Home Store and PETsMART are about to open their doors as the second phase of Southpointe Common is set to come online.

With stores already up and running in Calgary and Edmonton, Red Deer is next on these chains’ shopping list as they expand retail operations.

Construction is already under way on a 26,000-sq.-ft. Best Buy, a 35,800-sq.-ft. Sears Home outlet and a 22,500-sq.-ft. La-Z-Boy Furniture Gallery, which will open for business this fall.

The other tenants, along with Winners and EB Games, will have sliding openings that will extend into early 2005. Meanwhile, additional retailers for the next phase are in the process of being finalized.

But Southpointe Common’s second phase, a Qualico Development West Ltd. project, isn’t just about shopping.

Two hotels – a 76-unit Days Inn, expandable to 100 units, and a Motel 6 – are also a part of the mixed-use power centre that is strategically located between Highway 2, Gaetz Avenue and Delburne Road. The project will also include a restaurant and a bank.

At one point, a stadium-style theatre complex was to be part of the development, says Herb Reynolds, Qualico’s commercial manager.

“The plan we had worked with for quite a while contained a large theatre. There was a desire by the theatre operators to build a new plant in the stadium-seating format,” says Reynolds.

Financing, however, proved to be an obstacle, though he expects a similar project elsewhere in Red Deer could eventually become a reality.

Southpointe’s second phase will cost Calgary-based Qualico $27.5 million for its portion of the development.

A seven-acre section of the second phase, which includes the La-Z-Boy store, additional retail and the two hotels, has been sold off to three purchasers who will own this segment that borders Highway 2 and Delburne Road.

Located directly across from the first phase, Reynolds says the second phase “was certainly dependent on how we perceived the market and in particular, how well Phase 1 was received by the market.”

The first phase of the project is almost full and includes Hallmark, JYSK, London Drugs, Mark’s Work Wearhouse, Pier One and Saan, among others.

Food selections consist of A&W, East Side Mario’s, Montana’s and Second Cup. New to the phase will be Riveted Clothing Co. and a pub, both of which are set to open this fall.

The anchors of the initial phase are Home Depot and Wal-Mart, both of which have purchased the land on which they are located.

Opened in November 2001, the first phase cost about $24 million, excluding the portion housing Home Depot and Wal-Mart.

“We saw a demand for more retail,” says Reynolds. “First of all, it was an excellent piece of land (the 40 acres for the first phase), extremely well located and large enough to do a decent development.”

“There appeared to be some pent-up demand, particularly for the larger-box tenants who hadn’t landed in Red Deer yet.”

For Phase 2, Qualico had an option on the adjacent 25 acres. A purchase agreement was completed in early 2003.

“What happens in a centre like ours is that Phase 1 gets built and it takes time for the market to absorb that sudden burst of capacity,” Reynolds notes. “Once that’s absorbed, another centre like Phase 2 is built.

“That takes a while from a leasing perspective, but once that takes place, there are a fair number of retailers who somewhat follow each other around, though not necessarily by plan.”

Best Buy and company will be reaching a primary and secondary trade market of 200,000 in the greater Red Deer region.

Red Deer is growing, with 3,232 new residents having made the city their home in the first five months of 2004, an increase of 4.45 per cent over 2003.

This brings Red Deer’s population to 75,923 people, up by more than 10,000 from the 65,701 mark in 2000.

Construction of the second phase will also reflect environmental considerations.

A retention pond will utilize the existing wetlands area at the back of the property, maintaining it for birds and wildlife.

It doubles as a stormwater pond, but the water will remain at a low enough level that it won’t endanger wildlife during high flows.

Ledcor Construction is the construction manager on both phases of the Southpointe Common project, while Group 2 Architecture Engineering Interior Design is overseeing design.

(Laura Severs can be reached at laura@businessedge.ca)