West Park Mall owners tout plan for property redevelopment

Editor's note: This story has been updated to correct financial numbers.

In advance of a public hearing, potential recommendation from Cape Girardeau's Tax Increment Financing Commission and an up-or-down vote at the City Council, those involved with a proposed redevelopment of West Park Mall have released additional details about the project.

River City Centre LLC officials have outlined a $107 million project to redevelop the mall and surrounding out-parcels, hoping to use a combination of financial incentives from the city and county. The incentives include fee waivers from the city (valued at about $100,000), sales tax waivers for construction materials (estimated at $3 million) and tax increment financing (maximum potential of $18.2 million over 23 years). Developers noted they want to take advantage of not only the TIF incentives — which allow a developer to recoup half of local increased property tax and sales tax revenue — but also Community Improvement Districts and Transportation Development Districts. The TIF funds would not be available unless the project demonstrably grows tax bases.

The project's initial phase would include new exterior store entrances and enhancements, and focus on "extensive improvements" to the eastern wing of the existing mall, vacated by Macy's in 2021. Phase 1 would also include improvements to mechanical, electrical and plumbing systems, as well as adding loading dock space and landscaping improvements. Along the property's perimeter, out-parcel developments would increase food and beverage options.

The public hearing on the proposal is set for 3:30 p.m. Wednesday, June 21, at Osage Centre in Cape Girardeau. Afterward, TIF commissioners would have 10 days to decide on a potential recommendation to the City Council, which is set to take up the matter in coming weeks.

Experience

According to a release from the group, it has nearly nationwide experience in such projects.

"RCC is a group of local real estate developers and strategic partners. The group is owned and managed by Lucas Haley, Michael Williams and Ben Ressel, with additional investment from Matthew Mills, Natalie Riley, and Steve Holden, through trusts and affiliates. Combined, they have developed assets across 37 states with a portfolio that includes big-box retail, grocery-anchored retail, triple-net retail [property leases in which the leasee pays all expenses of the property, including real estate taxes, building insurance and maintenance, according to www.investopedia.com ], multifamily, hotels, health care, agriculture, renewable energy and historic rehabilitation. The group has extensive experience in large-scale developments and public-private partnerships, and are active investors in several early-stage companies, including multiple businesses based in Southeast Missouri," the release states.

Cape Girardeau city manager Kenneth Haskin said the project has great potential for the city and region.

"At $107 million, the West Park Mall redevelopment will be the largest private investment in our city since the hospitals were built," he said. "The River City Centre team has an exciting vision to remake the mall into a true destination with shopping and entertainment options. In the last eight months, they have been fantastic partners, and we are very confident in the development plan. The revived mall will attract more shoppers and boost activity in and around the mall with a ripple effect across the city. With online sales and changing consumer habits shuttering malls across the country, we are so lucky to have local investors bringing new energy and private funds to the project and our community."

The developers have not named potential retailers who may occupy the redeveloped property, noting confidentiality agreements and ongoing negotiations, but contended the new businesses would well serve the community.

"River City Centre has taken public demand and comments into account when attracting new retailers and tenants to the property, including several of those listed in a recent poll by B Magazine," RCC representative Lucas Haley said. "We believe the public will be excited to see the retail offerings available in this community for the first time. We look forward to making the tenant lineup public at the first available opportunity."

Incentives

The incentives the group is seeking would not result in the project receiving money from the local taxing units but would come from funds it would not receive except for the development.

"Once construction is completed, the TIF structure provides for the property to be reassessed for tax purposes and a portion of the incremental increase in new tax revenue created by the project is available for reimbursement of eligible project costs," the release says. "Under the proposed financing structure, no taxing jurisdiction gives up any existing tax revenue, and no taxing jurisdiction guarantees any incentive revenue reimbursement to the project. Only a portion of the increase in tax revenue generated by the project is used for the project costs, with the remaining portion continuing to go to local tax districts."

The group's release projects more than $80 million in increased tax revenue over three decades, "with $51 million to the city, $28 million to the county and $3 million to the public school district."

The developers estimate the project would generate 750 construction jobs and eventually 700 retail jobs.

Assistant city manager Trevor Pulley said the project could spur "indirect" economic growth.

"The West Park Mall revitalization will add to the economic vitality of Cape Girardeau and the entire area. It is a large project, but similar plans have been accomplished by others in the region," he said. "One city's project was approximately $123 million, which included TIF. Since that project, their area has grown, developed and continues to develop. I have personally and professionally worked with the River City Centre developers on prior projects. In each project, they delivered what they proposed."

The development group has partnered with The Lawrence Group, Pace Properties, Integra Realty Resources, Pilot Construction Solutions and, most recently, Robinson Industrial, Heavy and Commercial Contracting (RIHC), a locally-based construction company.

"River City Centre has assembled a tremendous team to deliver this project, and RIHC Contracting is both excited and thankful to be part of it," said Paul Findlay, president of Robinson Construction. "We have been fortunate to be part of many impactful projects over the years, and we believe that this project will be incredibly impactful for the City of Cape and the broader Southeast Missouri region."

For more information about the redevelopment of West Park Mall, contact RCC representatives Nick Martin — (573) 979-3836 or Nick.Martin@pilot-cs.net — or Lucas Haley (573) 335-3316 or lhaley@limbaughlaw.com, or visit www.rccmgmt.com.