MALL «FROM 7A

square feet of retail space for at least the first two years after construction begins, and at least 212,500 square feet after that.

But the motion failed to get support from the rest of the council. “Residential gets us nothing in terms of financial benefits to the community,” Melin said. “I need to make certain that this development gets us healthy amounts, sustainable amounts of sales tax.”

Colby Young, Gerrity’s vice president of asset management, told Businessden via email Wednesday that the company will look at each planning area of the property with retail and residential space.

He said developing the property slowly, one section at a time, will allow the company to develop and attract suitable tenants as retail concepts change. But he said the zoning changes mean there will “always be over 125,000 square feet of retail at Aspen Grove.”

As Businessden previously reported, as recently as 2007, the mall generated sales tax revenue for Littleton in excess of $2.5 million annually, according to materials prepared by the city’s staff. But that figure trended downward before plunging to slightly more than $1.5 million in 2020.

The city estimated redeveloping the property would increase annual sales tax revenue to $2.34 million, saying nearby residences would bring in high-quality tenants and increase sales per square foot. If the property is not redeveloped, city staff members estimated the annual revenue would continue to decline to about $900,000.

Rudnicki, one of the four yes votes, said he was in favor of the new uses and the plans for more open space at Aspen Grove, especially given its proximity to the RTD Mineral Avenue light rail station. He said the upgrades are needed.

Rudnicki said concerns residents had about increasing traffic on South Santa Fe Drive were not substantiated and that the city’s transportation experts had addressed those concerns.

Gerrity Group’s plans call for buildings that are 30 feet to 85 feet high, and the company — which paid $82 million for the property in 2016 — said it wants to make the mall easier to navigate for pedestrians and bicyclists. The firm indicated that development eventually could include a hotel or other lodging property.

At a meeting in July, Gerrity said the redevelopment would be a slowmoving project. He said many retailers have evolved to doing business without much space.

“(The plans) just illustrate what could be done over long periods of time to meet the changing needs of retailers and the community,” he said. “The nature of retail we’re seeing now since COVID is changing so rapidly.”

One of the goals of Gerrity Group stated in its application for the project is to build a “diversity of housing options” for various age groups and income levels, although council members pointed out there are no formal requirements for them to build anything other than market-rate housing.

“Gerrity Group is reviewing a number of affordable housing options with experts such as (South Metro Housing Options),” Young said via email. “Because Littleton has not adopted regulations to guide the development of affordable housing, there is no real way to commit to anything at this time.”

Rudnicki said incomerestricted housing requires subsidies, and Littleton does not have a framework to require such housing. Melin said he’s hoping that will come early next year, as the state passed a law allowing cities to require new developments to provide restricted-income housing.

Tenants at Aspen Grove include Williams Sonoma, Ulta, Pier 1 and Alamo Drafthouse Cinema.