Kroger officials break ground at Hilton Head mall redevelopment

bheffernan@islandpacket.comApril 3, 2013 

Developers released more details Wednesday about the Kroger Marketplace that will anchor one end of Hilton Head Island's new Shelter Cove Towne Centre, formerly the Mall at Shelter Cove.

New mall tenants were not identified, but an official with the company negotiating with prospective businesses said "advanced discussions" are under way.

The 87,588-square-foot Kroger will be the largest grocery store on Hilton Head, according to information distributed at a groundbreaking. The store will feature a Starbucks coffee kiosk; Murray's Cheese shop; a restaurant with indoor and outdoor seating; fresh sushi; a walk-in beer cooler; a "growler filling station," where people can fill up jugs with draft beer; a resident wine expert; a drive-through pharmacy; and an outdoor bicycle-repair station.

The development is a joint venture between Kroger Real Estate and Blanchard & Calhoun Commercial, a commercial development and real estate brokerage services company based in Augusta, Ga.

The Kroger is expected to open in early December, said Don Barnett of Kroger Real Estate. Collins and Arnold Construction of Atlanta will build the store.

"We see opportunity in the growing year-round population of this beautiful place ... and in the millions of visitors that return year after year," Kroger chief financial officer Mike Schlotman said.

Mayor Drew Laughlin called the development "a vote of confidence in the future of Hilton Head Island."

The Shelter Cove Towne Centre will be an outdoor mall, with several single-story shops, cafes and restaurants between Kroger on one end and Belk department store at the other. The shopping center will be bisected by a walking area that will have views of Broad Creek and lead to a relocated Shelter Cove Community Park. The town plans to split the cost of building the estimated $4.5 million park with the developers, but will pay no more than $2.25 million if the project exceeds its budget.

The 42-acre mall project, estimated to cost $74 million, will include 290,000 square feet of retail and restaurant space and will be built in three phases, according to the release.

The grocery store, adjacent retail shops and restaurants on the northeastern half of the mall, and a Kroger gas station on the southwest end of the property will be built first.

The second phase includes building the shops on Belk's side of the mall and the park. A third phase -- still needing town approval -- would add 210 apartments east of the mall with views of Broad Creek.

The center is expected to create more than 450 jobs and generate $5.1 million in annual sales-tax revenue, according to the release.

No other stores or restaurants were confirmed Wednesday as mall tenants, but they could be announced in two to three months, said Matt Mills, senior vice president of Blanchard & Calhoun. The firm is in "advanced discussions" with several businesses, he said.

Tenants are expected to include:

  • Three to four restaurants.

  • Ten to 15 shops.

  • Two to three small- to medium-sized department stores.
  • He said about half of the tenants would be locally owned businesses; the other half would be national and regional franchises or chains.

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