The Branson Board of Aldermen last night voted unanimously to take ownership of the Factory Merchants Mall, aka the Red Roof Mall, from Simon Property Group.
According to a news release from the city, the special session lasted less than three minutes, and there were no comments on the contract before the vote.
Though the city already owns the land, located on Highway 76 behind White Water, the 31-acre site had been leased by Simon for $129,000 a year, with its lease to expire in 2021.
The contract releases Simon from the remainder of the lease, with conditions. Simon has agreed to pay the city $300,000 at closing, which is scheduled for no later than Jan. 5, and the contract includes a six-month management agreement which would have Simon perform property upkeep and work with the mall's remaining tenants to terminate their leases and help them relocate.
With the Board of Aldermen vote, the city will take possession of the 31 acres, plus an additional nine-acre parking lot, and all buildings and improvements on the site. The $300,000 payment will be used specially for maintenance and insurance on the property, according to the release.
According to the Taney County Assessor's office, Factory Merchants Mall is worth roughly $6.3 million.
Branson spokesman Jerry Adams said the city will sign the contract with Simon Jan. 5, after which the Board of Aldermen would conduct public hearings on how best to use the property.
Branson City Administrator Dean Kruithof had previously indicated that Simon, which has seen sales decline at Red Roof Mall, intends to focus its efforts on Branson Meadows Mall, which it also owns. Many of the Factory Merchants tenants are expected to move to that location. Red Roof Mall, which opened in 1986, has estimated sales of $18 million in 2011, compared to $38 million seven years ago, according to
Springfield Business Journal archives.
According to Adams, the Red Roof Mall has 90 stores but only 34 tenants.
Publicly traded Simon Property Group Inc. (NYSE: SPG) also operates Battlefield Mall in Springfield.
As of 10:54 a.m., the company's shares were trading at $129.93, compared to its 52-week range of $95.29 to $131.92.[[In-content Ad]]
