Today, Midland’s City Council voted to approve an economic development agreement between the City and the Midland Park Mall.
The agreement is designed to ensure that the Mall continues to be a viable option for Midland residents and a long-term contributor to the City’s tax base. Earlier this year, Sears declared that it would be closing multiple stores nation-wide including their Midland location. At that time, Simon, which owns the Mall, approached the City to discuss a path forward.
Simon has agreed to re-develop and find tenants for the Sears space and additional sections. “This agreement is a win-win. With the closure of Sears, we have the opportunity to bring more shops and services to Midlanders,” Midland Mayor Jerry Morales said.
“"We would like to sincerely thank the City of Midland for their great assistance in helping Simon redevelop the Sears parcel at Midland Park Mall and look forward to exciting changes at the property," said Rod Vosper, Vice President of Development at Simon.
The economic development agreement stipulates that Simon will demolish the Sears store and construct at least 150,000 sq. ft. of new retail in its place. Simon agrees to use commercially reasonable efforts to fill the space with a full-line department store or premium retailers. Sales tax generated by the new retailers will be reimbursed from the 1% General sales tax the city receives from the State, under the following parameters:
Time Since New Retail Opens
| Amount Reimbursed
|
Years 1-3
| 100%
|
Years 4-6
| 80%
|
Years 7-9
| 70%
|
Years 10-12
| 50%
|
Years 13 +
| 0%
|
The total amount of reimbursement is capped at $7,500,000 or 12 years, whichever comes first.
In addition to the Sears space, Simon has the option to develop additional retail space attached or adjacent to the current Mall footprint. This development is eligible for sales tax reimbursement only if the retailers added are deemed Premium Retail by the City.
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Media Contact: Elana Ladd, (432) 685-7593