The Shops at the Old Mill District is opening its doors this summer, featuring some of the best-known national retail heavyweights.

But the competition says it isn’t worried.

That’s because The Shops targeted at high-end local shoppers and tourists won’t compete head-to-head with existing malls or downtown, local retailers say. In some ways, especially for downtown, the large new retail development could actually complement existing businesses.

The riverside development promises to bring big name stores and a unique shopping experience to Central Oregon. Ultimately, The Shops will include 150,000 square feet of shops, restaurants, galleries and entertainment.

To develop the open-air shopping district, the district’s local developers teamed up with Excel Legacy, Inc. of San Diego, one of the nation’s largest real estate developers and managers.

Josh Rutter, manager of the Mountain View Mall, said he won’t lose his customer base to the Old Mill District because it’s filling a niche in high-end retail and will attract a different kind of customer.

”I know the mill district is adding a larger retail mix to the Bend market,” he said, ”but the tenants who have chosen to go to the Old Mill do not fit the demographics of our mall.”

While the Mountain View Mall is geared toward the working-class families in the community, Rutter said, The Shops at the Old Mill District, which include upscale chain stores such as Banana Republic, Gap, Victoria’s Secret and Eddie Bauer, are geared at spendy shoppers who might otherwise travel to Portland.

The Shops at the Old Mill District are designed to provide a shopping, dining and entertainment experience that is unique in Central Oregon.Photo by Lyle Cox/Copyright 2001, The Bulletin.

Though some covered malls across the country have been losing ground to popular outdoor shopping centers such as the Old Mill District, Rutter said, the Mountain View Mall has some distinct advantages that will help it stay ahead of the curve: location and weather.

Located between Highways 20 and 97, the mall is highly visible, Rutter said, and in the winter time, it’s warm.

”You have the weather factor,” he said, ”and in Bend, the weather is a big issue.”

Dean George, manager of Bend River Mall, said the mall and the mill district are two different kinds of retail entities.

”We don’t have a lot of stores that go up against them, or they against us,” he said. ”They’re selling a different kind of product. A significant number of stores in our mall are run by locals. A significant part of what the Old Mill is all about is, it’s run by nationals.”

Ron Audette, senior general manager of the Prime Outlets, said The Shops’ presence may even boost sales at the outlet center.

The reason?

”It’s going to reinforce the values,” he said.

The Prime Outlets carry many of the same brands as the Old Mill, and they offer it for a fraction of the price, Audette said. Every fiscal quarter the outlet center conducts price comparisons, and on average, he said, the products sold there are 39 percent less expensive.

The Old Mill stores will give more exposure to brand names the outlet center carries, and send the customers who don’t want to pay the high prices packing, Audette said. Over Memorial Day weekend, sales were up 6.6 percent.

Marty Smith, owner of Designer Fine Jewelry and president of the Bend Downtowners Association, said the Old Mill District stores will benefit consumers and retailers alike. More stores mean more choices, and that raises standards and keeps retailers on their toes.

”It’s an opportunity to grow, an opportunity to be outside of the box, an opportunity to be innovative,” she said.

Bud Capell, owner of Tour Time Travel and several downtown properties, agrees.

”If you can’t compete, there’s something wrong,” he said. ”Would the people rather not have the Old Mill District and have to go to Portland to get (items), or would they rather it be closer where we can fit in with them?”

Like other managers, Smith doesn’t think the Old Mill District will drain her sales. Rather, the new shopping center will draw more tourists and cash to the west side of Bend.

”It keeps the money here,” she said. ”It expands the pie.”

Bruce Miller, a spokesman for the Old Mill District, said there’s room for all shopping centers. While the mill district is bringing new chain stores to the area, shoppers looking for unique items from locally-owned stores and a flavor of Bend will trek downtown.

”Downtown has a certain age and ambiance you’re just not going to have no matter what you’ve got going,” he said. ”I think they’re going to hold their own very well.”

The mill district is exploring the idea of having a trolley shuttle shoppers back and forth between The Shops and downtown, creating a ”synergistic effect,” he said.

”It’s so invigorating to see all of these activities going on in Bend, the growth,” Smith said.

”We’re going to be good neighbors.”