Will Tax Incentives Automatically Transfer If Southern Park Mall Is Sold?

BOARDMAN, Ohio – With the possible sale of Southern Park Mall creating concern, Mahoning County commissioners and the Western Reserve Port Authority sought a legal opinion about the Community Reinvestment Area agreement the mall was previously granted.

Contrary to some reports, the CRA will not automatically transfer if the mall is sold, Mahoning County Commissioner Carol Rimedio-Righetti said Wednesday. She said legal counsel has advised that commissioners will get a say regarding any change to the CRA agreement.

Reports surfaced this fall that Washington Prime Group, the owner of the mall, is interested in selling it to Kohan Retail Investment Group of New York. No details have been released about the terms of the sale of the mall, which has the CRA tax incentive agreement in place.

In early 2020, the commissioners approved the CRA agreement with Washington Prime Group. At the time, it was reported that the CRA was part of an incentive package through the port authority, which would reimburse Washington Prime Group, located in Columbus, $6 million of the $30 million overall cost of the DeBartolo Commons project.

That project created spaces for restaurants and outdoor venues.

Rimedio-Righetti said the port authority is going to set up a meeting next week with Washington Prime Group, Kohan Retail and local officials so they can get some answers. She said things she has heard and read about the proposed buyer, Kohan Retail, give her pause for concern. 

Other cities where Kohan operates malls have reported a history of the organization falling behind on property taxes and other bills.

“I don’t like to see a good thing go to a bad group,” Rimedio-Righetti said. “I’m not saying that they are a bad group, but that’s what I’m reading and I’m not the only one.”

Washington Prime Group recently declined to comment on the potential sale. 

According to its website, Kohan Retail owns 24 malls, including The Mall at Robinson in Pittsburgh, Pa., and the New Towne Mall in New Philadelphia, Ohio.

Brian Gabbart, Southern Park Mall general manager, confirmed last week he also has heard about the mall potentially changing hands, but he was concentrating on gearing up for the holiday shopping season.

But with a potential sale looming, Rimedio-Righetti hopes to get better answers concerning the mall’s future.

“This isn’t fair to residents of Mahoning County, because there are 265,000 of us that shop,” she said, adding that not everyone likes to shop online and many enjoy going to the mall whether to shop for something or just walk around and browse.

Copyright 2024 The Business Journal, Youngstown, Ohio.