Work is about to begin on the transformation of Greenville’s Crossroads Mall into a “big box” shopping center.
The mall opened in 1983, but will likely celebrate its 31st birthday as something completely different.
City Manager Massoud Ebrahim said the project is expected to get under way within three weeks.
“City officials met with the mall owners last week and learned construction should begin by either the last week of January or the first week of February,” Ebrahim said. “We have extended their building permit to the end of February 2014.”
In March 2012, the City of Greenville entered into an agreement with Triyar/Crossroads Greenville Properties for a multi-million dollar redevelopment of the property. The city would receive a portion of the increased sales taxes generated by the redevelopment of the mall, splitting the increase with the mall’s owners.
Under the terms of the agreement, Triyar/Crossroads intends to invest approximately $11 million on the transformation.
Under the proposed plan, mall anchors Staples, Belk and JC Penney will remain at their current locations, while Beall’s and Hibbett Sports will be relocated into newly created spaces, with the remainder of the leasable area occupied by retailers new to the project.
Tenants which have been confirmed for the center include Marshall’s, Ross, Petco, Encore Shoes and Rue 21. A separate building on the property will be leased to Mattress Firm, Great Clips and one other tenant.
Under the agreement the City of Greenville will pay the developer grant payments calculated on anticipated sales tax increases.
As of March 2012, Crossroads Mall was generating $23 million in annual taxable sales based on a five-year average. After the improvements are made, the project is estimated to generate $47 million in annual taxable sales.
The City will continue to collect 100 percent of the sales tax payments on the $23 million base which equates to an annual sales tax revenue of $316,250. The term of the agreement is 15 years and any additional sales tax generated from the project will be split equally between the city and the developer.
Earlier reports indicated the developer was required to make an investment of $10 million within the first 18 months of signing the agreement, although Ebrahim said that was never made a formal requirement under the contract.
Previous estimates indicated the work could be completed by the end of this year.