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News You Can Actually Use, Actually

More About City's Plans to "Rent" JCPenney at Southwest Center Mall, With Option to Buy

By Robert Wilonsky, Friday, Dec. 4 2009 @ 12:46PM
Comments (17)
Categories: News You Can Actually Use, Actually
JCPenney_SWCenter_Mall.jpg
Sam Merten
The vacant JCPenney building at Southwest Center Mall in South Dallas.
​
Karl Zavitkovsky, head of the city's Office of Economic Development, just called back to explain why the city's moving forward with plans to purchase the JCPenney's space at Southwest Center Mall, which the chain abandoned in 2001. Fact is, he says, the city is intervening because the owner of the property, Aspen Penny LLC, was recently approachedby a flea market about assuming the space "on a relatively long-term basis," which city officials don't think is in the best interest of revitalization efforts at Southwest Center Mall.

(Update at 3:04 p.m.: The city has posted the briefing for Monday's meeting. And, by the way, this is going before council on Wednesday. It's on the just-posted addendum for next week's city council meeting.)

And so, on Monday, Hammond Perot, Economic Development's second-in-command, will present to council a plan that allows the city to pay Aspen Penny $16,200 a month for six months, during which time the city will evaluate a handful of proposals that have been submitted to Economic Development in recent months. If the city doesn't like what it sees from would-be developers, it will go ahead and buy the property, with the $97,200 going toward the purchase price -- which, Zavitkovsky says, has been capped at a little more than $2 million. In the meantime, the city has commissioned two independent appraisals.

That money will come from a private-public economic development grant -- the same pot out of which the city paid $120,000 for the Urban Land Institute's study in April.

"What the ULI basically said is, 'You gotta pay to play,'" Zavitkovsky says. "They laid out a rough blueprint and said, 'You've got a bunch of owners out there, and there needs to be some consolidation of ownership. And if the city wants the ultimate development or redevelopment vision for the mall, you may have to step in and acquire or facilitate the acquisition of Dillard's and Penney's."

Speaking of, Zavitkovsky says the city doesn't need to buy Dillard's because it's currently under contract by something called Fiesta Mundo, which, he says, is "kind of a multi-purpose Latino center -- food courts, an event center, a Dave & Busters kind of thing."
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More About:

  • Karl Zavitkovsky
  • Sam Merten
  • Hammond Perot
  • Economic Issues
  • Economic Development

Comments (17)

Brown Bess says:

This mall has become the South Dallas equivalent of the doomed Trinity River Tollway. A lot of Very Important People think it's too important to fail, despite all the evidence that it already has.

Intervention should have happened 10-15 years ago. Now it's too late. This is a supremely wasteful way for the city to delay the inevitable.

Tear it down, build a new multi-use development there that can revitalize the entire are. The idea of a "mall" has been abandoned by the suburbs in favor of "town square-like" projects.

Leave it up to Dallas to try and foist a discredited and obsolte economic model on the south side.

Posted On: Friday, Dec. 4 2009 @ 1:10PM
lolotehe says:

Hey, you're forgetting the best part about that mall:

You can always find parking!

Posted On: Friday, Dec. 4 2009 @ 1:16PM
WashHater says:

Bess:
Problem with that idea is that Cedar Hill has exactly one of those developments 10 minutes down the road.

That and the fact that revitalizing that area will require a lot more than just a decent shopping complex.

Posted On: Friday, Dec. 4 2009 @ 1:27PM
Montemalone says:

Somebody actually wants to do something with the space and the city isn't happy because Neimans doesn't want to open a branch there?
$2 mil to buy an empty box attached to an empty mall?
This mall is empty for a reason. Nobody spent money there.
Why doesn't our repub mayor, you know how they love the free market and hate government, put a stop to this?
Let the free market fix it!

Posted On: Friday, Dec. 4 2009 @ 1:29PM
Grumpy Demo says:


People you don't understand, the Convention Center Hotel will be so successful that the City of Dallas is planning on a Convention Center South at this location.

That, or either Leppert is paying of his council cronies with some really worthless pork.

Posted On: Friday, Dec. 4 2009 @ 2:26PM
JackS says:

soooo wana bet we're paying more than the fleamarket? BONUS: it's their money and not the money from our librarys which now have less hours.

this idea flat out STINKS got Tennell Adkins fingerprints all over it.

Posted On: Friday, Dec. 4 2009 @ 2:27PM
Joey G. Dauben says:

Is it just me, or does any other free-marketer see the irony in the City of Dallas's "economic development" folks moving into a dilapidated mall that the free market obviously has not been able to support.


Posted On: Friday, Dec. 4 2009 @ 3:04PM
JF says:

What's wrong w/ a flea market going in? At least people would be going to the mall - maybe they'd even buy food or something while there. Having the city light money on fire would probably be more productive - at least it would provide some heat.
There will definitely be at least 2-3 more studies from consultants that will run into the 6-figures to figure out what the city will do with its terrible investment.

Posted On: Friday, Dec. 4 2009 @ 3:34PM
cp says:

"economic development" here doesn't include the kind of money that those dirty mexican flea markets would bring in.

Posted On: Friday, Dec. 4 2009 @ 5:16PM
Anonymous says:

""economic development" here doesn't include the kind of money that those dirty mexican flea markets would bring in."

But they're cool with "Fiesta Mundo"?

Posted On: Friday, Dec. 4 2009 @ 7:58PM
Uncle Sam says:

Put a mexican flea market in there and at the same time bring in Immigration and Customs Enforcement with a fleet of empty buses. Thats how to round up ILLEGALS on weekends, garage sales and flea markets.

Posted On: Sunday, Dec. 6 2009 @ 5:55PM
sandra crenshaw says:

do you really think that Penny's will sell the building to a flea market? I say call their bluff. If an investor has 2 mil to invest in a flea market, let me see him and who would call it a flea market instead of a boutique,unless you are playing chicken.
let's face it with the black buying power moving to the "chocolate crescent" why not? we got fiesta mundo at dillards and a mexican dance hall at mervyn's it'll be jefferson south and there goes the neighborhood.

Posted On: Monday, Dec. 7 2009 @ 12:00AM
La Raza says:

No matter how bad it got, the Black would always look down their nose at the Hispanic. Not anymore.
A flea market/emporium would bring in Hispanic entrepreneurs and shoppers rather than Black gangbangers and loud rowdy thugs that drive away customers.
Now that's some "Obama, change we can believe in."

Posted On: Monday, Dec. 7 2009 @ 9:16AM
sandra crenshaw says:

Seriously speaking the city is confronted with divided loyalties on which market to target. This black leader has known for decades that for the Red Bird area to attract and retain major retailers and an upscale market, there must be upscale housing to attract and retain residents with the "buying power" to sustain the market. We thought taking a lesson from downtown revitalization would direct investors to convert the mall into upscale housing community with condos that would attract a younger racially diverse market and high end retail and entertainment in the commercial strips across the street. What did Don Hill, Fantroy, and our Oak Cliff legislators give us?--- MORE low income tax credit apartments that skewed the racial makeup and market evaluation of the area. For those unfamilar with the area, there are scores of vacant retail outlets across the street and in the immediate vicinity for at least 1/2 mile. Vacant white elephant buildings that were once shopping strip anchors:Target, Albertson's, Home Depot, WalMart are unmentioned in the studies. The mall could have easily been bought for the UNT-Dallas campus. What did Don Hill, Fantroy, and our Oak Cliff legislators do?---On a motion to approve 3 million, they led the City to purchase land from a developer (with kickbacks, of course)located in a crime ridden area with deterioting housing stock and then approved more low income apartments in the area on the notion that they can attract major retailers with a low income market. Students have little or no buying power. I estimate that the present UNT campus purchased for 3 million will cost the taxpayers of Dallas at least an additional 200 million to address the infrastructural void. We're told at least 75 million of my estimate to extend DART UNT rail line above grade over the creeks,hilly topography, flood plains,and a six lane divided regional artery to induce development for their friends when there is no market. That is after our distinguished leadership bullied the council into spending 44 million more for the current alignment that the neighborhood fiercely opposed. A background investigation revealed THAT was a dirty deal.
The mall and the surrounding retail area is an excellent opportunity for a REGIONAL market for the Hispanic upwardly mobile. The Hispanics are not dependent on brand name major retailers or neighborhood market, like Jefferson Blvd and Lancaster-Kiest therefore local investors targeting Hispanics can put this area back on the tax rolls. Reference to an investment for a Mexican flea market is a chicken little attempt to save the mall but a Jimmy Jazz hip hop market,a Mexican dance hall, grocery store, and entertainment venue are already in the works. These venues are not compatible with an upscale vision. Further
Black flight to the Chocolate Crescent and Plano will create housing stock for the upwardly mobile Mexican Americans and rental property including section 8. So be it.

I feel betrayed by the Rasanskys of the council who for the last two decades turned a blind eye and voted on corrupt motions from our distinguished black council and zoning representatives,(that North Dallas finance and control.) At least Foster stands up to Price. Mitch for County Judge??? Thanks Unfair Park for letting the North Dallas 14-1 taxpayers know that their representatives are not watching our money. The 200 mil knows no trinity divide. By the way, the UNT-Dallas vision is on the Wednesday's Council agenda as well. I'll be there. Bring your calculator.

Posted On: Monday, Dec. 7 2009 @ 11:47PM
sandra crenshaw says:

la raza, right on, the Black gangbangers and loud rowdy thugs that DROVE away customers 20 years ago.
only it was the white Councilman prior to Tandy that is responsible for approving 10,000 units of multifamily adjacent to Red Bird Mall after a NIMBI study that recommended that apartments be mixed in with commercial/industrial districts as opposed to single family and owner occupied dwellings. Well without the city addressing the drag on the schools, parks and recreation, and police patrol, the census tract around the mall became the most crime ridden tract in America.(1995) domestic violence, rape, two murders and each piece of bubble gum stolen by the kiddos was reported as a crime statistic .The mall became the recreation center and babysitter.
Panhandlers and car jackers had a field day in the parking lots. We had movie theaters and chain resteraunts that patrons dared not go for the thugs. Now we have MULTIMILLION dollar churches with movie theatres and resteraunts harbored in the church for the affluent to attend and a council member who wants the church to stay out of her district.

Posted On: Tuesday, Dec. 8 2009 @ 12:46AM
Brandon says:

The only way for a plan to work is to make the area safer from those saggy pant wearing thugs that hang around up there, that is the cause for the decay in the first place

Posted On: Tuesday, Dec. 8 2009 @ 9:50AM
sandra crenshaw says:

they won't be hanging around mexican dance halls,but the new owner, jimmy jazz markets to hoodies, i'd rather have latinos next to me than a larger Big T bazaar that took over the old Target Building on Loop 12 @ 35e The old K-Mart was taken over my Hispanics and we have had no problems.

Posted On: Tuesday, Dec. 8 2009 @ 12:38PM

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