Sunday, August 10, 2008 9:33 PM CDT
Shoppers, manager hope mall tax deal brings more choices
By HERB MEEKER, Staff Writer
hmeeker@jg-tc.com
MATTOON — Shannon Trueblood hopes the metal grating will soon secure several new stores, not empty spaces at Cross County Mall.
Trueblood, the manager of Maurices and secretary of the mall merchants board, is excited that city officials and mall owners came to an agreement this week on financing a $4.5 million redevelopment of the retail center that helps generate sales tax revenue for the city.
She believes a remake of the mall inside and out could draw new businesses in vacated venues.
“When I talk to customers they do want more stores in this mall. They really want more of a selection. We need name recognition stores to keep people from driving to Champaign,” Trueblood said.
The redevelopment agreement is a partnership between Cross County National Associates and the city through its business district incentives program. The mall owners will commit $500,000 of the costs for the interior and exterior mall work, while the remaining $4 million is to be provided by a bond issue paid for up to 20 years by a 1 percent sales tax tacked onto the Mattoon sales tax total of 6.75 percent.
That added sales tax is already in effect at the mall and other retailers or restaurants in the Broadway East Business District, which stretches from the east side of Logan Street to land west of Cody’s Restaurant and bordered to the north by the bike trail and on the south by Charleston Avenue. Businesses in the South Route 45 Business District near the I-57 interchange are also eligible for a similar sales tax to help with development in that section of town. Both business districts were created last year by the City Council.
City Treasurer Preston Owen explained the added sales tax in the Broadway East Business District could produce the right effect for drawing new commercial development to the city’s far east side, especially within the mall. The redevelopment of Cross County Mall will include new facade designs, entrance replacements, interior makeovers and repairs to the parking lot and drainage system.
“If the redevelopment attracts new businesses there then it helps the city with sales taxes and also on property taxes. We really do benefit both ways,” said Owen. “Residents need to understand that the work at the mall will not affect their city taxes. We’re not cutting back on city services because we’re helping the mall. People shopping there will be paying for it. And if we increase our sales tax money in the future that could provide relief on property tax bills.”
Last fiscal year, the city collected $5.5 million as its share of sales taxes. That makes sales taxes a major moneymaker for the city.
“We want to be a regional retail center for surrounding counties. We can’t beat larger cities like Champaign, but we can draw more people here with more shopping choices,” he said.
The new 1 percent business district tax took effect on July 1 because state law only allows it every six months, Owen explained.
“That was our first opportunity to put it in effect,” he said.
Will the added sales tax be noticed by customers at Cross County Mall? For the most part, the extra 1 percent appears transparent and apparently painless: $1 more for $100 worth of purchases and 50 cents for $50 worth of goods.
“I don’t think people really notice it unless they make a return with us. Then we might have to make a tax adjustment,” said Trueblood.
Leslie Ashley of Charleston said the added tax did not stick out on her receipt while she was completing back-to-school shopping with her daughter Friday afternoon.
“We bought everything on sale. To me what matters is the bottom line price,” she said. “But what choices do we have with how high gas is right now?”
For Audrie Westendorf of Dieterich, a mother of three young children, the extra 1 percent is not a turnoff in her shopping plans. She likes the comfort factor provided by Cross County Mall.
“This mall is close and it’s convenient. It’s all about convenience to me,” she said.
And some more choices along the walkway in the mall might provide the right mix for drawing more shoppers like Westendorf.
“I do want more stores and more competition here. Offering the customers plenty of choices is very healthy,” said Trueblood.
Contact Herb Meeker at hmeeker@jg-tc.com or 238-6869.
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misterdeez wrote on Aug 9, 2008 7:38 AM: