Built in 1968, Tallahassee Mall managed to outlast nearly 40 years of the economic ups and downs that come with the retail industry, providing customers with a convenient place to shop, dine and pass the time.
Now its future - along with the livelihood and economic vitality of the surrounding community - is in doubt.
Dillard's, one of Tallahassee Mall's two anchor tenants, will leave come the first of 2008. The loss of this anchor store permits other mall retailers to opt out of their leases, potentially triggering a domino effect that could devastate this shopping location and, eventually, the surrounding area.
Right now, the mall faces extreme difficulty in leasing to new tenants. If we were to ask any reputable retailer to locate in the mall, it would no doubt deny the request, as the facility must undergo numerous changes before becoming attractive to customers and desirable tenants.
We must redesign and upgrade the roadways, entrances, signal lights, signage and landscaping, and make every aspect of the mall more appealing. This will also help bring in junior anchors and popular restaurants, which are necessary for the mall to become a premier shopping destination.
More crucial to attracting a new anchor tenant and other stores and restaurants that will produce economic benefits for the area is the backing of local government and the community as a whole. In fact, many major retailers will not bring their businesses to a region without first receiving an economic commitment from the local area.
Tallahassee officials faced a similar situation when working to entice Piper Aircraft to locate here by offering the company $90 million in incentives. However, many communities also recognize the importance of providing economic development incentives to preserve and strengthen existing businesses in addition to attracting new ones.
Tallahassee Mall generates more than $7 million in sales and property taxes and provides more than 800 jobs to local residents, all of which the community stands to lose if we do nothing and the mall closes.
As seen in other areas home to failed malls, this region could also experience the closure of nearby businesses, the departure of residents, an increase in crime and vandalism, and urban sprawl.
Redevelopment done right will save the mall, pump additional tax dollars into the economy and result in long-term economic prosperity, from which all Tallahassee residents will benefit.
Feldman Mall Properties (FMP), which specializes in the revitalization of regional malls around the country, plans to make a multimillion-dollar investment to turn the mall around. But we cannot do it without the economic support of, and in collaboration with, local government.
For example, some of the local-government assistance we seek might come in the form of traffic and roadway improvements, as we simply cannot add traffic lights and re-route traffic patterns as is needed without assistance from local government.
Contrary to the way our request may have been presented, we fully understand the current local budget crisis and do not expect to receive money from existing taxpayer funds.
We first want to talk about the future of Tallahassee Mall and the North Monroe Street corridor and determine the role that local government plans to play in it. We then want everyone to begin thinking outside of the box. For instance, one proposed solution requires FMP to invest all of the redevelopment money up front, and then later receive part of the expected increase in tax revenue that results from the redevelopment of the mall, which would not affect current city and county budgets.
If we commit to working through this economic development effort together, we will maintain and enhance the existing tax base, create or retain more than 1,100 jobs, and encourage additional businesses and new residents to locate in the area. Everyone wins.
We experienced great success in Harrisburg, Pa., where we successfully worked with government and the local community to save a soon-to-be blighted area by making a multimillion-dollar investment in a dying mall. We know the same can be achieved in Tallahassee.
We hope to work closely with the Tallahassee Chamber of Commerce, local business owners, residents, public officials and others to answer important questions and address concerns. In fact, we have created an e-mail account where you can contact us for this very purpose: TallahasseeMall@gmail.com
We truly appreciate your patronage, and we hope to continue serving you in the future.
Ed Feldman is chairman of Feldman Equities, and with his son, Larry, formed Feldman Mall Properties Inc. in 2004. Feldman Mall Properties owns Tallahassee Mall and is a real estate investment trust that acquires, renovates and repositions enclosed retail shopping malls around the country. He has headed a major general contracting company that built high-profile construction projects around the world. He lives in Paradise Valley, Ariz. To contact him online, go to FeldmanMall.com.
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