Construction on the controversial 1.1 million-square-foot Colonial Pinnacle Nord du Lac lifestyle center is scheduled to begin in April with completion anticipated in October 2009, said leasing agent and spokesman Richard Yeilding.

The shopping center, to be located at the intersection of Interstate 12 and Louisiana Highway 21, has been mired in controversy since its beginning. Once planned to house a Sam’s Wholesale Club and Wal-Mart, an agreement with Smart Growth Tammany led to the prohibition of such big box stores.

An agreement reached with the landowner, Bruce Wainer, led to a deed restriction prohibiting the development of the land for any “big box” store, said Lisa Condrey, attorney for Smart Growth Tammany. Condrey defined the term “big box” as any store over 100,000 square feet that makes its money on volume sales rather than price points. For example, Dillard’s is planned for the complex at 127,00 square feet, according to the project’s Web site but is not considered a “big box” because its sales are not based on volume.

Site preparation is under way on the Colonial Pinnacle Nord du Lac lifestyle center at Interstate 12 and La. Highway 12. (Staff photo by Debbie Glover)

Part of the agreement reached with Colonial Pinnacle involves the development proposal. The agreement states it must be built as proposed, as an upscale lifestyle center, said Condrey. Even if the economy declines, Condrey said they must adhere to the original proposal and not build a strip mall made of steel.

There are other restrictions as well, mainly concerning the residents in nearby Flowers Estates. Any outdoor concerts must end at a given hour, and trash must be stored away from the neighboring residents.

Yeilding said they have signed tenants but are not ready to release the list.

The 169-acre tract has been cleared, and groundbreaking is set for April.

The neighboring LaQuinta Inn borders the property but is not a part of the development.

Concerns that local lawmakers and citizens of both Covington and Mandeville have had include the signing of retailers already in established sites that will leave those sites vacant as well as result in less sales tax for those cities.

Still on the company’s Web site are plans for Dillard’s and a 27,000-square-foot Barnes and Noble. Although Dillard’s is not in Mandeville or Covington, Barnes and Noble is currently located in Mandeville.

A list of stores included in the center that have signed leasing agreements thus far will be released just prior to the groundbreaking, said Yeilding.

The lifestyle center will reportedly cost $220 million. The $24 million special assessment bond in state bond money approved for the project will not be given to Colonial Pinnacle until the project’s construction is complete, said Yeilding.

The 30-year bond is capped at a rate of 8 percent and will be largely retired with tenants’ rent and a 3/4 cent sales tax on all items sold in the center, capped at $10 million or in 2037, whichever comes first, to help retire the $24 million state bond.

Among the infrastructure improvements Colonial Pinnacle needs to include for the property is a six-lane boulevard from La. 21 to the former rest area off I-12 and rights of way for utility trucks.

The development reportedly will create thousands of jobs and boost the St. Tammany economy through sales tax from the addition of thousands of shoppers.