Tuesday, November 22, 2016

Midway Mall Highest & Best Uses Feasibility Study

Last night, the consultants hired by the Mayor to study the Midway Mall area presented their report.  A copy of the full report can be found here:  Midway Mall Use Study

Below is the Mayor's memo to City Council, enclosing the study:

As I informed you of earlier this year, I deferred part of the unfilled Economic Development
Specialist position salary to pay for the hiring of a firm to work with the City and Midway Mall
asset managers to conduct a Highest and Best Uses Feasibility Study for Midway Mall. The
attached study will be presented to you by the consultants (Jeff Green Partners and Hoffman
Strategy Group) on Monday November 21 during the City Council meeting.

The study has resulted in recommendations for a redevelopment plan for the Mall area that will
be used by the Mall asset managers to try to attract a data-driven, high quality developer when
they sell the property in 2017. It will also be used by the City to leverage outside economic
development funding and will guide us in making future decisions about zoning and offering
economic development incentives to property owners and developer(s). After the presentation,
I am requesting that the Council President refer this matter to the proper committee for
eventual adoption of the report and associated recommendations. Council's official action will
assist the City in leveraging other economic development funds and assistance from other public
and quasi-public economic development entities inside and outside the County.

Midway Mall Highest & Best Uses Study Highlights:

The Elyria/Lorain County market loses approximately $890 million in retail sales because
residents shop elsewhere, such as the Great Northern Mall or Crocker Park.
The economics of the Mall, like other malls nationally and retail generally are changing.
• Retailer's closing or relocating (e.g, Macy's and Dillard's)
• Retails smaller footprint because of e-commerce
• Shifting consumer preferences, tastes, and shopping patterns

The goal of the City of Elyria is to capture a larger portion of those lost retail sales by finding the
highest and best uses for Midway Mall; right-sizing retail; and incorporating other uses such as
residential, hospitality, and office.
This study analyzes the Elyria market in terms of what retail, residential, hospitality, and office
uses are supportable on the Midway Mall property.
It finds that an opportunity is present to realize nearly $100 million in new sales revenues
associated with the re-development of Midway Mall.
• $90 million annually in new retail sales revenue potential
• $3 million annually in new gross residential rental revenues
• $3 million annually in new professional/medical office rental revenues
• $2.5 million annually in gross hotel receipts
The cost of leaving Midway Mall as-is:
• Continued retail spending leakage from the Elyria market
• Retail sales from existing tenants will likely continue to erode
• Additional store closings over the next five to 10 years
• A blighted property that loses future development opportunities
This is analysis helps to inform an ongoing process that includes as our next steps:
• Collaborative discussions among the various property owners, public and private
interests regarding
• Potential redevelopment plan(s)
• Marketing of the property
• Recruitment of developers
• Estimate the financial costs of a settled-upon plan
• Determine public incentives for re-development

The bottom line is, the Mall property is viable in the future only if it changes strategy,
incorporating a different mix of retail, entertainment, office, hotel and mixed-use residential

1 comment:

Olivia Princess said...

I have added to my favorites. Thank You.
articles about the web marketing