REI is in the final stages of lease negotiations to open a second store in Austin, Texas, at 6th Street and Lamar Boulevard in Austin’s Market District. The proposed store will open fall of 2005. REI opened its first downtown Austin store in 1989, but relocated to 9901 N Capitol of Texas Highway. The new second store would put REI back in Austin’s primary downtown retail district and within walking distance of the Town Lake hike and bike trail.

The Lamar Boulevard store and the North Capitol of Texas Highway store will serve more than 15,000 active co-op members in the Austin area. While anyone may join or shop at REI, members pay a one-time $15 fee and receive a share in the company’s profits through an annual member refund based on their purchases. REI was founded in Seattle in 1938 by a group of Pacific Northwest mountaineers.

“Austin is a premier outdoor recreation community for cycling, hiking and camping,” said REI Vice President of Real Estate Jerry Chevassus. “REI serves people heading out great places like Barton Creek Greenbelt, Wild Basin Wilderness Preserve and Bastrop, McKinney Falls, Pedernales and Inks state parks.”

The 22,500 square-foot two-story store would be next to Book People, one of the nation’s largest independent bookstores, in the architecturally important, Austin limestone Whole Foods Building. The building is being leased from Schlosser Development Corp.

“We’re really excited to have REI back downtown and in the Market District,” said Brad Schlosser, president of Schlosser Development. “It’s wonderful to have such a great company to help bring Austin back to its downtown.”

The new store will employ 50 full- and part-time staff and provide REI’s full line of outdoor gear and clothing. A gear rental department will encourage people to try outdoor sports.

In related news, REI was recently named for the seventh consecutive year to FORTUNE magazine’s “100 Best Companies to Work For in America” list, ranking 24th. REI is one of only eight companies to have been included on each of the magazine lists and two book versions.