MASHANTUCKET — American Eagle Outfitters, Ann Taylor, Banana Republic and Brooks Brothers are among the major stores signed up for a shopping mall to be built at Foxwoods Resort Casino, the developers announced Thursday.
The development company, Tanger Factory Outlet Centers Inc., also named Calvin Klein, Coach, Fossil, Gap, LOFT, Michael Kors, Nike, Skechers, Steve Madden and Tommy Hilfiger on the list of retailers — a list expected to grow to about 80 stores.
The $115 million Tanger Outlets at Foxwoods could be open for holiday shopping in 2014 or by the following spring, Tanger chief Steven B. Tanger said.
Most of the stores named Thursday already have a presence at either Tanger's outlet mall in Westbrook or at Clinton Crossing, operated by Premium Outlets. Just one — Steve Madden, the shoe and accessory store — will be new to Connecticut.
"To our knowledge, this will be the first outlet center attached to a casino floor," Tanger said. "It's a test. We hope it works. If it does, we will roll out more."
Thursday's long-awaited announcement came during a groundbreaking ceremony for the 312,000-square-foot outlet mall. The mall will connect the Grand Pequot Tower and the newer MGM Grand at Foxwoods and will focus on luxury brands. The land is being leased from the Mashantucket Pequot Tribe, which owns Foxwoods.
Foxwoods, faced with the prospect of increasing competition, hopes the mall will attract visitors uninterested in gambling and turn the resort into a destination where guests will book longer, two- and three-night stays.
In late June, Foxwoods rival Mohegan Sun announced plans for a $50 million expansion that is expected to add 50 retailers and 200,000 square feet to its neighboring casino, entertainment and retail complex, raising the competitive stakes.
Both Foxwoods and Mohegan Sun are trying to differentiate their Connecticut casinos from those proposed for nearby Massachusetts and upstate New York. Foxwoods and Mohegan Sun are competing in separate regions of Massachusetts for licenses to establish resort casinos.
In Connecticut, Foxwoods opened in 1992 and grew dramatically for years. But its huge MGM Grand expansion took place just before the recession, which led to a financial crisis in 2009. Visitors declined, and its debt amounted to $2 billion.
Scott Butera, Foxwoods chief executive, said Thursday that the announcement in early 2012 that the casino would add a major outlet mall — even as it was trying to refinance its debt — was gutsy.
"It sounded bold, and it was bold," Butera said. "Our gaping hole was having a great shopping experience."
Last August, Foxwoods successfully refinanced its debt, saving $520 million through extended repayment deadlines and lower interest rates.
Butera said Foxwoods plans to invest $50 million a year in renovations of its hotel rooms, gaming areas and restaurants. But it is the mall that could provide a key to future growth.
Thursday's groundbreaking was marked by traditional tribal dances of celebration and a "smudging" ceremony using smoke to "cleanse" the construction site and to pray for the safety of all construction workers.
Tanger estimated that 400 construction workers will be needed to build the mall. Eventually, 900 full- and part-time workers will be employed by the outlet shops, he said.
Construction was first scheduled to begin in spring of 2012, but there were reports of delays in reaching leases with tenants. The project kept getting pushed back, though Tanger reassured investors through much of this year that construction would start by the end of 2013.
Tanger said construction was delayed partly because of the complex engineering that was required to connect the mall to the two existing buildings. There will be no entrance directly from the outside, only through the casino floors.
"This will be the eighth wonder of the world, if we pull it off," Tanger joked, during the groundbreaking.
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