A massive re-development project to overhaul The Shops at Willow Bend with hundreds of residential units, is not without changes, big changes. NBC 5’s Maria Guerrero explains how it may now be moving forward without a major retailer.
As the anticipated major overhaul of Willow Bend Mall inches toward final city approvals, NBC 5 has learned the redevelopment project could be moving forward with one less anchor retail store than expected.
This week, an attorney for the developer went before the Plano Planning and Zoning Commission successfully requesting the city waive the two-year waiting period for consideration of a rezoning request for the proposed project.
The request aims to permit modifications to the project, including the addition of townhome-style homes and adjustments to the layout of the retail site.
“We’ve made some significant changes, or are proposing some significant changes, to the overall plan,” said attorney William Dahlstrom. “We think is going to be a far better plan and a much more exciting plan when we come back and see you. It's really an interesting opportunity for us, for the city.”
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The Willow Bend mixed-use redevelopment project, which received initial approval from the city earlier this year, includes plans to demolish more than half the current mall building [demolishing over 500,000 square feet] while keeping anchor stores Macy’s, Neiman Marcus and Dillard’s.
The property would be transformed into an open-air shopping center reminiscent of Legacy West, with 965 apartments, park space, an 18-story hotel and office space.
Changes to the project filed with the city of Plano now include between 40 to 60 townhomes on the site, according to city filings.
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Michael Platt, EVP of Mixed-Use Development at Centennial, provided NBC 5 with the following statement on the change:
"Due to recent market shifts, we have made key adjustments to the previously approved plans for the Willow Bend Mall redevelopment. We believe these updates will further enhance and revitalize the mall, positioning it for long-term success. We're pleased with the progress made so far and remain committed to working closely with the City of Plano to shape a vibrant future for this important community asset.”
NBC 5 filed open records requests with the city of Plano for any new documents pertaining to the proposed project and received documents recently filed indicating the new townhomes would be built on or next to Macy’s department store location.
Today, NBC 5 reached out to Macy’s for comment on any plans to close its Willow Bend location and when.
A spokesperson for the company tells NBC 5: ‘Our new strategy is designed to create a more modern Macy’s, Inc. and enhance the customer experience. We intend to close approximately 150 Macy’s stores while further investing in our 350 go-forward fleet over the next three years. A final decision on specific locations has yet to be made.’
Carlos Martinez, a professor of economics at Dallas College and an economist at Crescent Securities, is not exactly surprised to hear of the major changes and the likely reasons for them.
“What's happening here in Plano, these are all good stores, but they're not all great stores and so there's not enough foot traffic there throughout the year. One of the ways to address that is building apartments and houses and condominiums and create density,” said Martinez. “We're trying to build foot traffic, density. That's where you want to build your stores, and so with these malls, these are enormous spaces, hundreds of acres and people are just not going there anymore, so they need to actually move people into that area.”
Martinez says data shows Americans are struggling with higher debt and less disposable income, leading to more cautious spending at more moderately-priced retailers like Macy’s.
“High-end stores still do well in malls because people are convinced of quality, and if you're going to spend $500 on a shirt or $2,200 on a suit, they want to feel it, see it, they want to wear it. But really, anything below that can pretty much go to Amazon or any other store and just have it delivered, and so we're not getting the foot traffic anymore,” he said. “The trend is to you have got to integrate people density, and so you need to put stores in living areas, in communities where people can walk to or go or get to.”
Macy’s representatives do not deny sales growth profitability potentials are being evaluated along with real estate values but stress the Plano location will remain open for now.
If it is in fact chosen among the 150 store closures, the closure would not happen until at least 2025, according to the company.
It’s also important to note that nearby Stonebriar Mall in Frisco has a Macy’s store.
At least one current Willow Bend tenant is eagerly awaiting the project to finally break ground.
The owner of Knife Burger told NBC 5 over the phone, he specifically opened up shop because of the redevelopment project, adding they are never going to hit their ‘potential until the project is done.’
In early 2024, the mall's new owner Dallas-based Centennial said The Shops at Willow Bend has lost 28 national retailers since 2020.
Plano's planning and zoning commission approved Centennial's request to include townhomes.
The project will still have to go through public hearings, the commission and eventually the full council.
