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USA. Duty Free Americas (DFA) has responded to the impending loss of its flagship border store in San Ysidro by proposing a new high-rise complex to include a duty free shop, retail outlets, restaurants and parking facilities.
Under the third phase of the US General Services Administration’s (GSA) San Ysidro Land Port of Entry Expansion Project, the 12-acre plot occupied by DFA’s current store is to be purchased by the government as it connects major highway Interstate 5 to the El Chapparal crossing. The project is to be completed by January 2018.
Duty Free Americas (under its UETA fascia) has operated the store on the USA-Mexico border for 30 years. More than 100 jobs and 1,200 parking spaces serving local businesses will be lost.
On 9 June the company proposed that it retain two acres of land and add another acre owned by the GSA to create a new facility with duty free and other retail outlets, restaurants and a space (including helipad and observation deck) for US Customs and Border Protection.
How the initial proposal from DFA was reported by local media KPBS San Diego |
Duty Free Americas Chairman Simon Falic told The Moodie Report: “We have been working with the GSA for ten years while they have secured budget and funding for the project. Up until 2010 we had proposed a store and parking lot.”
Once planning for the second and third phases of the border project had begun, the company presented a new proposal, for a parking structure with commercial space underneath. The new structure has been designed by well-known Washington DC architect firm HNTB Corp and will be funded entirely by Duty Free Americas.
Falic noted that the new duty free store – on a plot of three acres as opposed to 12 – would probably not be as big as the current outlet. But it will be in a highly strategic location, close to the redeveloped border facilities and a new pedestrian border crossing.
According to the San Ysidro Smart Border Coalition – comprising local residents and business owners – the new DFA site would inject US$30-50 million of private investment into the area (100% from Duty Free Americas); create 100 jobs during construction and 300 long-term jobs; and restore 1,000 parking spaces.
However the coalition noted that GSA has so far been unwilling to discuss allowing the private project to coincide with its own border plans. Last week the coalition delivered a petition with 5,104 signatures to the government, urging it to include space for the DFA complex in its proposals.
“We are looking for a positive resolution,” Falic said. He noted that DFA’s plot is the only one facing compulsory purchase under the government plan.
San Ysidro Chamber of Commerce Executive Director and coalition founder Jason M. B. Wells said: “The DFA proposal is the perfect opportunity for a private project to fill some of the voids phase three will leave — such as a 1,000 space parking deficit, insufficient pick-up facilities for pedestrian crossers and lack of economic development.”
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The new high-rise complex would host DFA’s duty free outlet as well as restaurants, other retail outlets and a dedicated space for US Customs and Border Protection |
The coalition also cited the San Diego Association of Governments as claiming that the DFA proposal would generate an additional footfall of 25,000-30,000 people at the border crossing.
Duty Free Americas operates four border stores in San Ysidro. It claims its flagship store, at 15,000sq ft, is the biggest duty free outlet in the USA.
The planned border changes are not the only challenges to DFA’s business in San Ysidro; last month new competitor Duty Free City unveiled a 14,000sq ft border store there – the first of what it claims will be more than 25 locations on the US borders with Mexico and Canada.
