YOUNGSTOWN, Ohio – The Mahoning County Tax Incentive Review Council on Thursday recommended continuing Community Reinvestment Area incentives for Southern Park Mall, despite the refusal of the new owners to present any updated information or answer questions from public officials.

“They have been noncommunicative with the township,” said Tom Costello, council member and Boardman Township trustee. “We’ve attempted to speak to them, email them, left phone messages. We’ve even sent them snail mail. Evidently, we’re not high up on their list.”

In December, an affiliate of New York-based Kohan Retail Investment Group acquired the mall’s land and buildings for $24.1 million from Washington Prime Group.

Costello said the township wants to work with the new owners, just as it had with Washington Prime. “We always had a good relationship with the mall, and we want that to continue. But we need to talk,” he said. “Just tell us what your plans are. What’s your vision for the mall?”

The trustee said it’s frustrating because the township is consistently fielding calls from the public inquiring about the mall’s status. Officials, he added, have no answers since the new owners have not provided any information.

“We’re hoping, at some point, someone from the new ownership will reach out to us,” Costello said. “At this point, we’ve been trying since December, with no results.”

Kohan Retail owns a portfolio of retail properties across the country, some of which are very successful, such as the Mall at Robinson near Pittsburgh, Costello said.

Yet the investment group also owns properties that have experienced outages because of unpaid utility bills and issues related to delinquent taxes, according to previous reports.

“That’s why we’re reaching out.” Costello said. “All we hear are rumors. The Southern Park Mall is in the middle of our community.”

In 2020, the mall was awarded incentives through the county’s Community Reinvestment Area program while it was still under the ownership of Washington Prime Group. The CRA awarded a 40% reduction in real estate taxes over 15 years in return for a $20 million investment and expansion at the complex. Washington Prime had also pledged to create between 100 and 200 jobs.

The project included an outdoor recreation area consisting of a soccer field, amphitheater and stage and a pavilion. A new addition to the complex features three new tenants – Double Bogey’s Bar & Grille, the Steel Valley Brew Works and The Bunker – plus a Debartolo family legacy exhibit.

According to TIRC records, the actual investment in the project as of 2023 stood at $21,274,378.88, and 95 jobs were created. Moreover, the complex realized tax exemptions of $57,710.89 for the year because of the CRA. The mall paid a total of $980,243.14 in taxes in 2023, records show.

Washington Prime filed for Chapter 11 bankruptcy in June 2021. It restructured its business by securing majority ownership from SVP Global and emerged from bankruptcy in October 2021. The group sold the mall in December.

Mahoning County Auditor Ralph Meacham, also the TIRC’s chairman, said there was some question whether the CRA could transfer since the complex is now under new ownership. “We found out that it is transferrable under the new owners, so we’re just going to have to see what happens,” he said.

All tax incentives must be approved by the Board of Mahoning County Commissioners.

Other Projects

The TIRC also recommended continuing incentives for several other projects, including two enterprise zone agreements, four tax increment financing projects and another CRA in Jackson Township.

The council recommended continuing tax incentives for two companies – Nordson Xaloy and Trumbull Manufacturing, both in Austintown. Xaloy received a 60% tax break in 2018 over 10 years to help with a $40 million investment at its plant on Victoria Road. Since then, the company has invested $45,438,000 and has created 138 jobs of a projected 143 jobs. Trumbull Manufacturing also met its investment targets of $533,000 and the addition of two jobs. The company received a 60% tax break in 2019 over 10 years.

Four tax increment financing projects – Jackson Township, Penn National Hollywood Gaming in Austintown, the Inn at Poland Way in Poland Township and Aqua Struthers – were also recommended for renewal in 2025, the TIRC concluded.

Under tax increment financing, or TIF, a percentage of a company’s new real estate taxes are diverted into a separate fund that is used to finance construction of surrounding public infrastructure. These programs are approved and managed by local communities.

A second Community Reinvestment Area program affecting three businesses in Jackson Township – Hilltrux Tank Lines, Liberty Steel and Universal Stainless – was also recommended for renewal.

Pictured at top: Southern Park Mall in Boardman.