CALGARY - A real estate developer that said a year ago it had plans to build a massive outlet mall adjacent to Calaway Park now says the project is not proceeding, the Herald has learned.

In announcing its third quarter financial results this week, RioCan Real Estate Investment Trust said: “RioCan and its partner, Tanger, will no longer be proceeding with the acquisition of the lands adjacent to (Calaway) Park near Calgary, AB as disclosed last quarter.”

In July as RioCan announced its second quarter financial results, it said it had three development sites in Canada under firm contract where conditions have been waived that, if completed, represent acquisitions of $23 million at RioCan’s interest.

One of those sites included: “The acquisition of lands adjacent to Calaway Park, a 35 acre parcel of land located approximately 25 kilometres west of Calgary, Alberta,” the company said at the time.

The site was to be acquired on a 50/50 joint venture basis between RioCan and Tanger at a purchase price of $28 million ($14 million at RioCan’s interest).

“While due diligence conditions have been waived, the acquisition remains subject to a zoning condition. The site would be acquired free and clear of financing. The intention is to develop the land into an outlet centre of approximately 250,000 to 350,000 square feet. The acquisition is expected to close in the fourth quarter of 2014,” the company added at the time.

A year ago, plans were revealed for a RioCan/Tanger Outlets shopping centre with 80 stores in nine buildings.

Rags Davloor, RioCan’s president, chief operating officer and interim chief financial officer, told the Herald there is no intention at this point in proceeding with the project.

Sources say issues surrounding the proposed development such as community approvals, zoning and transportation costs were major factors in the project not moving forward.

Bob Williams, general manager at Calaway Park, confirmed the end of the RioCan/Tanger deal.

“We will take steps to pursue development with our existing bylaw approval for a smaller outlet mall (175,000 square feet) that would be compatible with our amusement park and RV facility,” he said.

The proposed mall was for land Calaway Park owns just south and east of the entertainment centre.

“The development of large-scale shopping centre projects like the proposed Tanger Outlets Centre are complicated ventures with a myriad of approvals required and other factors such as transportation and leasing to deal with,” said Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate Inc., in Calgary.

“Clearly the stars were not aligned with Tanger and other previous developers who have proposed retail on this site over the past 20 years. I have no doubt that a community-oriented shopping centre will someday open here that will cater to the needs of the roughly 7,000 residents of Springbank and North Springbank as well as tourist traffic on the TransCanada Highway.”

The Master Site Development Plan for the Tanger mall, revealed a year ago, said it “will be a destination shopping centre comprised of high quality, world class retailers that offer in-season merchandise and the latest fashion trends from top brand names and designers.”

“Tanger Outlets at Calaway Park will provide retail amenities to residents of Springbank, adjacent communities within Rocky View County and across the Calgary Region and beyond,” it said. “The retail offering will complement the existing Calaway Park recreational amusement facility and expand the facility’s destination appeal as a major regional tourism attraction.

“Tanger Outlets at Calaway Park will be a thriving retail centre where people can meet and interact in a pedestrian-friendly atmosphere.”

It said wide, animated walkways would connect the retail stores, plazas and various pedestrian realm amenities with the goal of creating a high-quality shopping experience.

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