Boardman school board OKs abatement deal for mall

BOARDMAN — Southern Park Mall owner Washington Prime Group is one step closer to securing a tax abatement for the mall redevelopment project, but some vocal residents fear that the company will benefit at the expense of taxpayers.

Washington Prime Group is requesting a Community Reinvestment Area designation, which would exempt the company from having to pay property taxes on the assessed value of new structures at the site for 15 years.

The Boardman school board unanimously voted Monday night to approve the CRA agreement. It must also be approved by the Mahoning County Board of Commissioners.

At Monday's meeting, longtime Boardman resident Carl Rafoth urged the board to vote against the agreement, calling the tax abatement "crony capitalism."

"If it's a viable project, it should not have public funding," said Rafoth. "Think of all the tax revenue that will be forgiven for up to 15 years. That just doesn't make sense to me."

In response to concerns about the tax abatement, Washington Prime Group Vice President of Real Estate Development Matt Jurkowitz explained that the incentives would improve the quality of the redevelopment project.

"We are working with the community to make an investment here that, without incentives, could not be made," said Jurkowitz. "I'm not saying there wouldn't be a project. That would not be accurate. There would be a project. It's the quality and caliber of the project that communities use these tools to ensure."

Washington Prime Group plans to invest $30 million at Southern Park Mall and intends to recover about $6 million in redevelopment costs through economic development tools, including the CRA agreement and the creation of a Joint Development District. By creating a JEDD, the company would partner with Boardman township and a municipality to levy an income tax on new employees of the mall to recover between $1 million and $1.5 million.

At Friday's Coffee and Conversation event at the mall, multiple residents asked about a JEDD, fearing that redevelopment costs would be shouldered by minimum wage workers.

Jurkowitz told Mahoning Matters Monday night he understands the concern, but that the JEDD is limited in scope. He wants Boardman residents to see the JEDD as part of Washington Prime Group's long-term effort to keep the site competitive.

"By making the investment now, you secure your ability to keep your site relevant into the future. That's what this is all about," said Jurkowitz.

This story was originally published December 17, 2019 at 5:15 AM with the headline "Boardman school board OKs abatement deal for mall."