Branson looks to take over mall property

The Branson Board of Aldermen is considering taking over Factory Merchants Mall, which also is known as the Red Roof Mall, from Simon Property Group.

The city already owns the land, located on Highway 76 behind White Water, which is leased by Simon for roughly $129,000 a year, with its lease set to expire in 2021, according to a news release from the city.

If ownership is transferred, the city would lose roughly $200,000 in sales and transportation tax revenues in 2012, plus the annual lease payment.

The Board of Aldermen met Dec. 19 to consider the transfer but postponed the meeting to garner further information, particularly on future expenses that would be incurred by the city.

At a Dec. 27 meeting, a substitute bill that would have the property group pay the city $300,000 at closing would receive its first reading. The final reading on that bill is scheduled to be held Dec. 29, the release said.

City Administrator Dean Kruithof was approached by officials with Simon Property Group about 45 days ago to take over the mall, which according to the release, has been in decline since it opened in 1986. In 2011, sales are estimated to be about $18 million, compared to $38 million seven years ago.

Kruithof said the property group would like to focus its efforts on Branson Meadows Mall, which it also owns.

The proposed contract to acquire the Red Roof Mall includes a six-month management agreement with the property group that would help the existing tenants find new locations. Many of the tenants are expected to relocate to Branson Meadows Mall, the release said.

Publicly traded Simon Property Group Inc. (NYSE: SPG) also operates Battlefield Mall in Springfield.

As of 10:42 a.m., the company's shares were trading at $128.76, compared to its 52-week range of $95.29 to $131.21.[[In-content Ad]]