ST. GEORGE, Utah (KUTV) — A new shopping complex is underway in St. George, bringing national retailers to southern Utah, but some residents have raised questions about whether the region’s economy and resources can sustain another mall.
The project, called “The Paseo,” is under construction near 3000 East and Merrill Drive, just across from the Red Cliffs Utah Temple. City officials said the development will be unique from other shopping areas in the city, with an open-air design, multiple restaurants, and a movie theatre.
They hope that the new complex will complement, rather than compete with, existing shopping centers, like the Red Cliffs Mall.
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Chad Thomas, St. George’s Economic Development Director, said taxpayers will not be footing the bill, but all residents could see the benefits.
“When a development comes online, a developer is required to pay impact fees, whether it be new roads or water,” Thomas said. “New growth really pays for a lot of new infrastructure.”
The project comes at a time when prices are rising and budgets are tight. According to the Bureau of Labor Statistics, inflation in the West is up 3.2% over the last year.
Washington County, however, continues to show economic strength. Its unemployment rate sits at 3.6%, which is below the national rate of 4.3%.
Thomas said another factor attracting developers is the city’s long-standing tax stability.
“Property taxes here in St. George haven’t been raised since 1987,” Thomas said. “It’s been a long time since we’ve raised taxes, but we support essential city services via impact fees.”
He added that sales tax revenue from existing retailers has remained steady even through periods of economic uncertainty and rising costs. This, Thomas said, has reinforced developers’ confidence in the market.
“Construction’s extremely expensive right now, and tariffs add to that,” Thomas said. “But the belief in the St. George market is pretty high for them to go ahead and commit capital here.”
The Paseo is slated to feature national brands such as Nordstrom Rack, Anthropologie, and a flagship Lovesac store — retailers that local shoppers previously had to travel to Las Vegas or Salt Lake City to visit.
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