The Domain (Austin, Texas)
Encyclopedia
The Domain is a high-density business, retail, and residential center operated by Simon Property Group
and Endeavor Real Estate Group, and is located in the high-tech corridor of northwest Austin, Texas
. It is bordered on the west by Union Pacific Railroad
, on the west and north by Loop 1, on the south by Braker Lane, and on the east by Burnet Rd. The initial phase of the project was completed in March 2007. It is managed and owned by Simon Property Group
of Indianapolis
, Indiana
.
Additional land for The Domain is being reclaimed from vacant IBM manufacturing and administrative buildings, as well as driveways and parking lots that were once part of the original IBM campus.
The developers were granted tax subsidies in 2003 from the City of Austin and Travis County
. Total developer compensation is a maximum of a net present value of $25 million. The developer keeps 80 percent of the city's sales tax for the first five years and 50 percent for the next 15 years. Plus, 25 percent of the property tax is rebated back to the developer for the entire 20-year period. The city of Austin expects to take in about $40 million in sales and property taxes over the 20 years of the incentive agreement.
and a Macy's
anchor (with Macy's fulfilling an earlier commitment by Foley's
), along with 70 specialty stores, including an Apple Store
, a Barneys New York
CO-OP store, Burberry
, Victoria's Secret
, Tiffany & Co.
, BCBG Max Azria
, Calypso Christiane Celle, Anne Fontaine, Lacoste, Lilly Pulitzer, Betty Sport, and a Borders Group
bookstore. The shopping center notably is also one of the short list of locations containing outlets for two new store concepts — Abercrombie & Fitch Co.
's RUEHL 925
, targeting affluent young professionals, and American Eagle Outfitters
' adventure-oriented Martin + Osa
. Both of those stores have since closed as of late 2010, and have now become locations for Anthropologie (in the former Ruehl location), and Lids (in the former Martin + Osa location). Restaurants include McCormick & Schmick's
, Fleming's
, Daily Grill, Jasper's, Kona Grill,The Steeping Room, & California Pizza Kitchen
.
Simon Property Group announced that a 200000 sq ft (18,580.6 m²), three-story Dillard's
would open during spring 2009 in the primary portion of the project. Nordstrom
signed a letter of intent for a two-story, 149000 square feet (13,842.6 m²) store to open in The Domain's phase III.. Also, Saks Fifth Avenue
has also signed a letter of intent for Phase III.
Whole Foods
is expected to open a 55000 square feet (5,109.7 m²) square foot location in The Domain in 2013 and, according to a spokes person from Endeavor Real Estate Group, The Domain is only currently 15-20% complete .
Stop Domain Subsidies launched a petition drive in 2007 to put an initiative on the city ballot to stop the city from granting any city tax subsidies for developments with retail uses. The charter amendment, which would have prevented the city from giving tax incentives to retail projects, appeared on the ballot for the November 2008 election as Proposition 2 but was ultimately defeated by a margin of 4%. In the run-up to the election, on September 2008, a political action committee
named Keep Austin's Word was started by Betty Dunkerley, a former member of the Austin City Council.. Keep Austin's Word was primarily funded by the developer's of The Domain, including Simon Properties, the largest mall developer in the United States. Rodgers, together with independent political activist, Linda Curtis, went on to found ChangeAustin.org, which is continuing efforts to organize a political voice for local Austin businesses and reform minded voters.
announced they will be closing their bookstore at The Domain in April 2011.
Simon Property Group
Simon Property Group, Inc. is an American commercial real estate company, ranked #1 in the United States as the largest real estate investment trust. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers, The...
and Endeavor Real Estate Group, and is located in the high-tech corridor of northwest Austin, Texas
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
. It is bordered on the west by Union Pacific Railroad
Union Pacific Railroad
The Union Pacific Railroad , headquartered in Omaha, Nebraska, is the largest railroad network in the United States. James R. Young is president, CEO and Chairman....
, on the west and north by Loop 1, on the south by Braker Lane, and on the east by Burnet Rd. The initial phase of the project was completed in March 2007. It is managed and owned by Simon Property Group
Simon Property Group
Simon Property Group, Inc. is an American commercial real estate company, ranked #1 in the United States as the largest real estate investment trust. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers, The...
of Indianapolis
Indianapolis
Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
, Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
.
Initial development
The initial Domain site consists of 57 acres (230,671 m²) and stands on the former site of Century Oaks Park, a multi-purpose recreational facility for IBM employees and their families. The park was so named for the century-old trees contained within. The land was purchased from IBM, and demolition of the park began in 2004.Additional land for The Domain is being reclaimed from vacant IBM manufacturing and administrative buildings, as well as driveways and parking lots that were once part of the original IBM campus.
The developers were granted tax subsidies in 2003 from the City of Austin and Travis County
Travis County, Texas
As of 2009, the U.S. census estimates there were 1,026,158 people, 320,766 households, and 183,798 families residing in the county. The population density was 821 people per square mile . There were 335,881 housing units at an average density of 340 per square mile...
. Total developer compensation is a maximum of a net present value of $25 million. The developer keeps 80 percent of the city's sales tax for the first five years and 50 percent for the next 15 years. Plus, 25 percent of the property tax is rebated back to the developer for the entire 20-year period. The city of Austin expects to take in about $40 million in sales and property taxes over the 20 years of the incentive agreement.
First phase
The first phase of the project, The Domain, opened on March 9, 2007, and includes 700000 square feet (65,032.1 m²) of restaurants, office space, upscale retail stores, apartments, and a hotel. The retail portion of the project has attracted many retailers and restaurants new to the Austin market. An 80000 sq ft (7,432.2 m²). Neiman MarcusNeiman Marcus
Neiman Marcus, formerly Neiman-Marcus, is a luxury specialty retail department store operated by the Neiman Marcus Group in the United States. The company is headquartered in the One Marcus Square building in Downtown Dallas, Texas, and competes with other department stores such as Saks Fifth...
and a Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
anchor (with Macy's fulfilling an earlier commitment by Foley's
Foley's
Foley’s was a chain of department stores owned by May Department Stores and headquartered in Downtown Houston, Texas. As of August 30, 2005, the division was dissolved and operation of the stores was assumed by Federated's Macy's West and Macy's South divisions. Foley's operated stores in Texas,...
), along with 70 specialty stores, including an Apple Store
Apple Store (retail)
The Apple Retail Store is a chain of retail stores owned and operated by Apple Inc., dealing in computers and consumer electronics. The stores sell Macintosh personal computers, software, iPods, iPads, iPhones, third-party accessories, and other consumer electronics such as Apple TV...
, a Barneys New York
Barneys New York
Barneys New York is a chain of luxury department stores headquartered in New York City. The chain owns large stores in New York City, Beverly Hills, Boston, Chicago, San Francisco, Dallas, Las Vegas, and Scottsdale, and smaller stores in other locations across the United States.Brands sold include...
CO-OP store, Burberry
Burberry
Burberry Group plc is a British luxury fashion house, manufacturing clothing, fragrance, and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. Burberry is most famous for its iconic trench coat, which was invented by founder Thomas Burberry...
, Victoria's Secret
Victoria's Secret
Victoria's Secret is an American retailer of women's wear, lingerie and beauty products. It is the largest segment of publicly-traded Limited Brands with sales of over US$5 billion and an operating income of $1 billion in 2006...
, Tiffany & Co.
Tiffany & Co.
Tiffany & Co. is an American jewelry and silverware company. As part of its branding, the company is strongly associated with its Tiffany Blue , which is a registered trademark.- History :...
, BCBG Max Azria
Max Azria
Max Azria is a French fashion designer of Tunisian Jewish descent who founded the contemporary women's clothing brand BCBGMAXAZRIA. Azria is also the designer, chairman and CEO of BCBGMAXAZRIAGROUP, a global fashion house that encompasses over 20 brands...
, Calypso Christiane Celle, Anne Fontaine, Lacoste, Lilly Pulitzer, Betty Sport, and a Borders Group
Borders Group
Borders Group, Inc. was an international book and music retailer based in Ann Arbor, Michigan. The company employed approximately 19,500 throughout the U.S., primarily in its Borders and Waldenbooks stores....
bookstore. The shopping center notably is also one of the short list of locations containing outlets for two new store concepts — Abercrombie & Fitch Co.
Abercrombie & Fitch
Abercrombie & Fitch is an American retailer that focuses on casual wear for consumers aged 18 to 22. It has over 300 locations in the United States, and is expanding internationally....
's RUEHL 925
RUEHL 925
Ruehl No.925 , or simply Ruehl , is a now defunct upscale American lifestyle brand by Abercrombie & Fitch Co. The concept was inspired by the artistic and cultural heritage of New York City's Greenwich Village and was meant to attract post-graduate individuals aged 22 to 35, retaining consumer...
, targeting affluent young professionals, and American Eagle Outfitters
American Eagle Outfitters
American Eagle Outfitters is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania. It was founded in 1977 by Mark and Jerry Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned and operated Silverman's Menswear...
' adventure-oriented Martin + Osa
Martin + Osa
Martin + Osa was a brand concept developed by American Eagle Outfitters. The store's name and inspiration came from Martin and Osa Johnson, a husband and wife team who explored Africa and the South Pacific Islands, chronicling their travels in photographs and diaries.Martin + Osa targeted 21- to...
. Both of those stores have since closed as of late 2010, and have now become locations for Anthropologie (in the former Ruehl location), and Lids (in the former Martin + Osa location). Restaurants include McCormick & Schmick's
McCormick & Schmick's
McCormick & Schmick's Seafood Restaurants is an American seafood restaurant chain, based in Portland, Oregon. Founded in 1979, the publicly-traded company operates a total of 92 locations in North America under various brands. This includes seven Canadian locations that operate under the Boathouse...
, Fleming's
Fleming's
Fleming's Steakhouse and Wine Bar is a restaurant chain owned by OSI Restaurant Partners headquartered in Tampa, Florida. It is a formal attire restaurant and serves mainly steaks and seafood. Founded in 1998 by Paul Fleming and Bill Allen. Paul Fleming was previously a founder of P. F. Chang's...
, Daily Grill, Jasper's, Kona Grill,The Steeping Room, & California Pizza Kitchen
California Pizza Kitchen
California Pizza Kitchen , known within the food industry as CPK, is a casual dining restaurant chain that specializes in California-style pizza...
.
Second phase and additional expansion
The second phase, Domain Crossing, is located directly south of The Domain and opened in spring 2008. Domain Crossing added an additional 350000 square feet (32,516.1 m²) of retail stores, restaurants, and apartments, as well as a theater - Gold Class Cinema - and other entertainment options.Simon Property Group announced that a 200000 sq ft (18,580.6 m²), three-story Dillard's
Dillard's
Dillard's, Inc. is a department store chain in the United States, with 330 stores in 29 states. Headquartered in Little Rock, Arkansas, Dillard's locations are concentrated in Texas and Florida; with a major presence in other states including Arizona, Iowa, Colorado, Wyoming, Kansas, Missouri,...
would open during spring 2009 in the primary portion of the project. Nordstrom
Nordstrom
Nordstrom, Inc. is an upscale department store chain in the United States, founded by John W. Nordstrom and Carl F. Wallin. Initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings...
signed a letter of intent for a two-story, 149000 square feet (13,842.6 m²) store to open in The Domain's phase III.. Also, Saks Fifth Avenue
Saks Fifth Avenue
Saks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
has also signed a letter of intent for Phase III.
Whole Foods
Whole Foods Market
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products." The company has been ranked among the most socially responsible businesses and placed third on the U.S...
is expected to open a 55000 square feet (5,109.7 m²) square foot location in The Domain in 2013 and, according to a spokes person from Endeavor Real Estate Group, The Domain is only currently 15-20% complete .
Opposition
Brian Rodgers, leader of Stop Domain Subsidies, sued the City of Austin and Endeavor Real Estate Group in 2004, claiming Endeavor purposely mislead the city in order to receive what he argued amounted to $65 million in tax subsidies. The suit was settled out of court, with the settlement allowing the City of Austin to back out of deal with no penalties.Eventually, the local newspaper verified that the original claim that the subsidy was only $25 million was false and that, according to their figures, it could amount to $57 million. (Austin American-Statesman newspaper, Oct. 26, 2008).Stop Domain Subsidies launched a petition drive in 2007 to put an initiative on the city ballot to stop the city from granting any city tax subsidies for developments with retail uses. The charter amendment, which would have prevented the city from giving tax incentives to retail projects, appeared on the ballot for the November 2008 election as Proposition 2 but was ultimately defeated by a margin of 4%. In the run-up to the election, on September 2008, a political action committee
Political action committee
In the United States, a political action committee, or PAC, is the name commonly given to a private group, regardless of size, organized to elect political candidates or to advance the outcome of a political issue or legislation. Legally, what constitutes a "PAC" for purposes of regulation is a...
named Keep Austin's Word was started by Betty Dunkerley, a former member of the Austin City Council.. Keep Austin's Word was primarily funded by the developer's of The Domain, including Simon Properties, the largest mall developer in the United States. Rodgers, together with independent political activist, Linda Curtis, went on to found ChangeAustin.org, which is continuing efforts to organize a political voice for local Austin businesses and reform minded voters.
Current
- Dillard'sDillard'sDillard's, Inc. is a department store chain in the United States, with 330 stores in 29 states. Headquartered in Little Rock, Arkansas, Dillard's locations are concentrated in Texas and Florida; with a major presence in other states including Arizona, Iowa, Colorado, Wyoming, Kansas, Missouri,...
(opened 2009) - Macy'sMacy'sMacy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
(opened 2007) - Neiman MarcusNeiman MarcusNeiman Marcus, formerly Neiman-Marcus, is a luxury specialty retail department store operated by the Neiman Marcus Group in the United States. The company is headquartered in the One Marcus Square building in Downtown Dallas, Texas, and competes with other department stores such as Saks Fifth...
(opened 2007)
Future
- NordstromNordstromNordstrom, Inc. is an upscale department store chain in the United States, founded by John W. Nordstrom and Carl F. Wallin. Initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings...
(LOI) - Saks Fifth AvenueSaks Fifth AvenueSaks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
(LOI) - Fiat of Austin (opening in Spring 2011)
Former Stores
As part of their Chapter 11 proceedings, Borders GroupBorders Group
Borders Group, Inc. was an international book and music retailer based in Ann Arbor, Michigan. The company employed approximately 19,500 throughout the U.S., primarily in its Borders and Waldenbooks stores....
announced they will be closing their bookstore at The Domain in April 2011.