HUTCHINSON, Kan. — City Manager John Deardoff was before the Reno County Commission this morning pushing for passage of a TIF district for renovations to the Hutchinson Mall. The city council already approved the plan.
Deardoff says the proposal is to have the developers receive 2.5-million for the property tax component and 2.7-million for the sales tax side. They would be capped at that amount and Deardoff estimates that this TIF district would expire at the end of 12.5 years. Those amounts would paid the developer on a pay as you go basis.
Deardoff also noted that he considers the Mall a big part of the community and it becoming healthy again would benefit the whole community and business in the area.
The developer plans to use the money for parking lot resurfacing, although Andy Weiner, President of RockStep Capital told us earlier that would come later once they get more tenants to come into the property. Other things would include signage, engineering, financing and other miscellaneous capital outlay items including tenant improvements.
That would include work for a national department store or a combination of alternate retailers using a portion of the old Dillard’s space, a replacement for the old Sears space, help with theater upgrades with the Mall 8 under new ownership. Officials say that money could be used to bring in up to eight new tenants.
Deardoff says if nothing is done to this property, the property and sales taxes will go down. He says it’s not a pretty picture if you look down the road ten years.
All taxing entities have to approve this TIF district for it to proceed. The county commission after hearing the presentation of the city manager approved the measure unanimously.