Is Southern Park Mall’s redevelopment still on? What to know about mall owner’s bankruptcy filing
BOARDMAN — In spite of Washington Prime Group's Chapter 11 bankruptcy filing, the company is still planning to unveil its $30 million redevelopment of Boardman's Southern Park Mall on Oct. 23.
The company announced Sunday it has executed a restructuring support agreement with creditors holding nearly three-quarters of the company's outstanding secured corporate debt and more than two-thirds of its unsecured notes.
Southern Park Mall is one of the Columbus-based company's more than 100 shopping centers.
The company has also secured $100 million in debtor-in-possession financing to keep operations going through bankruptcy proceedings. The company said retailers and their customers can expect "business as usual" at all its locations during the proceedings.
"It is not impacting our project whatsoever," Boardman Township Administrator Jason Loree told Mahoning Matters Wednesday.
"There is no impact to the DeBartolo Commons redevelopment project," reiterated Kim Green, vice president of corporate communications at WPG. "It is business as usual at Southern Park Mall. Washington Prime Group remains committed to executing a first-class redevelopment project, which will feature the DeBartolo Commons athletic and entertainment green space and event venue for the benefit of Southern Park Mall’s guests, tenants, and community neighbors and partners."
Southern Park Mall is already putting together a calendar of events for DeBartolo Commons starting in October.
The project also promised to bring in new tenants, like Planet Fitness, which opened in April. The mall previously announced new upcoming local tenants: Bogey's and Steel Valley Brew Works. It's also working to secure another local tenant for the final space adjacent to the redevelopment.
Prior to the pandemic, Washington Prime Group lobbied to local redevelopment tools that would allow the company to recoup $6 million of the $30 million redevelopment project.
In December 2019, Boardman trustees voted to designate the project a Community Entertainment District.
The CED would provide the mall with five liquor licenses without requiring incoming restaurants to acquire them through traditional means. Unlike other means of acquiring a liquor license, liquor licenses acquired through the CED cannot be transferred, sold or used outside the CED designation.
In March 2020, Mahoning County Commissioners approved a tax abatement for Southern Park Mall.
The Community Reinvestment Area agreement will exempt mall owner Washington Prime Group from having to pay property taxes on the assessed value of new structures at the site for 15 years.
Converting malls to multi-use own centers "is the model," said Loree. "What's going to happen in Boardman is what's pretty much going to happen to most malls."
Washington Prime Group's bankruptcy comes on the heels of a barrage of bad financial news for Lordstown Motors Corp., which is working to build electric trucks in the former General Motors Assembly Complex in Lordstown.
But, the Southern Park Mall redevelopment won't go the way of other high-profile Valley business ventures, Loree said.
"The Valley needs a win," said Loree. "And I think we're getting it with the mall."
This story was originally published June 17, 2021 at 4:07 AM with the headline "Is Southern Park Mall’s redevelopment still on? What to know about mall owner’s bankruptcy filing."