HAMBURG, N.Y. - The McKinley mall in Hamburg is already dealing with some financial issues. And now that Sears is going bankrupt that's even making matters worse. The Sears store at McKinley mall will stay open at least for now, as the retail chain goes through bankruptcy proceedings. But town officials are not taking any chances.
Hamburg Town Supervisor James Shaw says, "Mall management owes this community some explanations - I think they do."
So Shaw is sending yet another formal letter requesting meetings and dialogue with the suburban Philadelphia - based Stoltz USA property management firm. As the Buffalo News reported previously, that firm has been having financial issues with the McKinley Mall mortgage as more so-called anchor stores have pulled out .
Stoltz officials say they won't talk to the media, but what about the town? 2 on Your Side noted that a previous effort to make contact didn't bring much of a response, so why does Shaw think this would be any different at this point? Shaw responded, "I don't know that it would be any different. The ownership is going through a loan default, restructuring, the value - fair market value of the mall has declined. It may decline to the bargain basement price."
The mall property was valued at $50 Million earlier this year. The tax assessment value is about half that, so it's a potential big hit for town tax revenue. An earlier pitched option of a sports complex - mall hybrid with an ice skating rink so far has fallen flat. And Shaw feels the lifestyle - retail complex suggested for the Eastern Hills Mall in Clarence would be too expensive to fit the Hamburg area demographics. Shaw says, "We've gotta help mall ownership find some creative ways to make that space attractive for tenants. I'm willing to listen to whatever mall ownership can tell us, prospective buyers can tell us and the public at large as well."
Supervisor Shaw says the town might be willing to provide some financial assistance for a joint study with the mall management firm. He also says potential commercial developers may be waiting for the mall's value to drop even more-so to grab the property at a cut-rate price.