The University Village is planning a major expansion to accommodate for more retail and parking space.

“The key focus is restaurants: non-chain, local, regional restaurants that are not already in Seattle,” said Susie Plummer, general manager at the U-Village.

In April, preliminary applications were submitted to the City of Seattle outlining a three- to 10-year project. U-Village hopes to add three new buildings in several phases. The expansion will add a total of 422,500 square feet, approximately three times the size of Husky Stadium.

Apart from the expansion, the wait is almost over for H&M fans, because the U-Village is introducing the clothing store to Seattle.

“It’s not really expensive,” said sophomore Meina Pang, who is majoring in political science and economics. “Everything there is an average of about $15 or less. When it first opens, [my friends and I] are all going to go.”

The Swedish fashion retailer, known for its trendy and well-priced clothing, will be debuting in Seattle this fall in the place of the U-Village’s Abercrombie and Fitch. There will also be two other H&M stores opening in Westfield Southcenter and downtown Seattle.

The changes at the U-Village indicate that Seattle is a growing hot spot for national retailers.

“We’re hipper than we were 10 years ago, ” Plummer said. “Now, Seattle is a key market. We’re young. We’re technology-based. We’re urban-based.”

With the exception of H&M, the new spaces probably won’t be filled with businesses catering to college students with tight budgets; Plummer estimates that fewer than 10 percent of annual sales come from UW students. But students make up approximately 50 percent of the workforce at the U-Village.

With the expansion, more student employees will be needed, Plummer said.

Although businesses welcome the expansion, surrounding neighborhoods are concerned about the impending traffic congestion.

Right now, there is only a two-lane road coming in and out of the surrounding neighborhoods, said Sarah Katsandres, the U-Village director of marketing.

“As far as business is concerned, it’s a good idea,” said Teresa Lord Hugel, executive director of the University Chamber of Commerce. “The big red flag is that there is no bus service there on the weekends. They’re building for cars.”

Plans are for the expansion to be implemented in several phases during the next few years.

The first phase includes a six-story parking garage with an additional level for retail. The building’s design will closely resemble that of Crate & Barrel, Plummer said.

Replacing the current Key Bank structure, phase one will add a total of approximately 40,000 square feet. This will allow large spaces for five to eight businesses. If the project goes according to plan, the first phase of the development will be open to the public in fall of 2010.

The second phase plans for a two-story building in the center of the Village. It will add 20,000 square feet for retail.

The final phase is a building adjacent to 25th Avenue Northeast and will include retail along with office space. It will be similar in size to the phase one building.

Plummer emphasized that plans are still in the very early stages.

“We outlined our ‘wish list’ … but it’s not very definitive,” she said.