Steve Mensing, Editor
♦ Rowan County Commission Chairman Jim Sides took time from his busy schedule Monday morning to answer questions specifically about the county purchasing the Salisbury Mall now known as the West End Plaza. The purchase came under attack early from special interests groups in Downtown Salisbury who also started rumors that the Mall would lead to an exodus of the justice system from the downtown area and lead Rowan County residents to suffer from increased taxes. Anyone who bothers to study available county documents and ask questions would quickly realize the Mall purchase would do neither despite the claims of vested interests in Salisbury, N.C.
Steve Mensing: Jim, Why did the county decide to purchase the Salisbury Mall? Who were the original decision makers on this purchase?
Jim Sides: Steve, there were earlier discussions about purchasing part of the mall property when the Belks building was abandoned. The thought then was the Belks building would be an ideal location for the School Central Office. When that idea was rejected by the School Board, discussion was dropped. When it was announced the entire mall was up for sale, Craig Pierce and I began new discussions about possibly purchasing the property for reuse by the County as a governmental center. We had immediate space needs for the Board of Elections, the Veterans Service Office, and an evidence storage warehouse for the Sheriff’s Department. To build new buildings to satisfy these immediate needs would cost at least $3 million dollars. We recognized in the long range, other space needs by the County could be met at a much lower cost with this purchase than with new buildings. We began to talk up the idea of bidding on the mall property and other commissioners came on board with the idea.
Steve Mensing: How much did the county actually pay for the Mall–the actual contracted figure?
Jim Sides: The County paid $3,450,000 for the mall property.
Steve Mensing: Special interests in the city of Salisbury conjecture they might’ve been able to purchase the Mall for less? Is there any truth to that?
Jim Sides: Steve, that’s conjecture. We will never know if the owner would have sold for less, because there was very little negotiation. A majority of commissioners were satisfied with the asking price and they wanted to move forward with the purchase.
Steve Mensing: At this point what are the short and long range plans for the West End Plaza?
Jim Sides: The first step, after purchasing the mall, was to grant some stability to the retail tenants currently there. The tenants were excited the County purchased the mall and most of them chose to renew their leases with the County. There were approximately 28 tenants when the mall was purchased. We lost 4, but have gained 4 new tenants, bringing us back to the original number of 28. The lease payments received from these tenants are sufficient to cover the monthly operating costs of the mall and allow the County to perform some maintenance on the mall property. Short term, we are in the process of up-fitting an area in the mall to house the Veterans Service Office and hope to have them located there by May of this year. Then, around July of this year, the Board of Elections will move to the mall into space which is being up-fitted for them. Next we will work to move our Transportation Department and then we will work to establish space for the Sheriff for evidence storage. We are currently in the process of producing a new long range capital improvement plan for the County which will incorporate complete plans for use of the rest of the mall space.
Steve Mensing: It always struck us the West End Plaza was a much needed bargain providing a lot of inexpensive space for the county to utilize for years to come. Here’s a question for you. Are there any major maintenance issues with the West End Plaza?
Jim Sides: We recently spent $25,000 to repair a sewer issue with the Movie Theatre property, which the previous owner ignored. There are now two major maintenance issues I see at the West End Plaza. One is the roof on the Belks building. The Belks building is approximately 80,000 square feet or about one-fourth of the floor space in the entire mall. To replace this roof is approximately $700,000. This is not an immediate need as there are no major leaks now. This project would only be undertaken when we are ready to occupy that part of the building, and the cost would simply be part of the up-fitting costs. The second maintenance issue is the parking lot. As you know, there is a very large parking lot at the Plaza. We are working now to identify and repair all potholes and areas of concern. We will stabilize the parking lot for now and address re-paving as areas are identified for heavy use.
Steve Mensing: How about talk of a West End Plaza’s upgrade? What will be the county’s cost for the West End Plaza’s upgrade?
Jim Sides: We estimate that the County could spend as much as $15,000,000 over the next ten to fifteen years to up-fit areas for governmental use. You must remember that this cost will be substantially less than the cost of new buildings if they were to be built. We figure this reuse of existing buildings will save the taxpayers as much as $15,000,000 over this same period of time.
Steve Mensing: That’s an enormous savings. To switch horses here–What kinds of income are being realized from the tenants at West End Plaza?
Jim Sides: The County is on track to realize in excess of $600,000 in income between the purchase date and June 30th of this year.
Steve Mensing: How is the county planning to deal with the current retail tenants at the West End Plaza? Will you be adding others?
Jim Sides: As stated earlier, we have stabilized the lease agreements with all the current tenants. We actually signed leases with three or for new tenants and are talking with others. It is our intent to maintain approximately one-third of the West End Plaza floor space for retail clients. The income realized from this arrangement will offset much of the overhead costs for maintaining the property while we are developing it for County use.
Steve Mensing: How is it going with the movie theater? Many folks are wondering if it might reopen?
Jim Sides: The County is currently negotiating with several possible tenants for the movie theater. We hope we will be able to make an announcement soon.
Steve Mensing: That’s great to hear. Okay–What are the current overhead expenses for the West End Plaza?
Jim Sides: Operating expenses, including salaries and benefits through June 30th of this year will be approximately $244,000. Revenue is pegged at approximately $600,000 for the same period. However, the County will not plan to bank the difference. We will reinvest the balance of $356,000 back into the mall for capital improvements, such as roof repairs, sewer repairs, air conditioner replacements, parking lot improvements, etc. This is being proactive in making needed repairs which were ignored by the previous owner before they develop into major problems. Understand, this is using revenue generated from the mall for these repairs…not new taxpayer funds.
Steve Mensing: Wise choices and music to the taxpayer’s ears. Some folks may have missed the meeting where Craig Pierce proposed the Mall’s name change. Why did the county rename the Mall: The West End Plaza?
Jim Sides: Steve, we felt it was important to give the mall a new identity. It is no longer the Salisbury Mall. We do not feel the property will ever be 100% retail again. We envision a mixed use for the property of approximately one-third retail, one-third county use, and one-third other use. The name West End Plaza just seemed to fit and it removes the old identity.
Steve Mensing: Some folks would like to know: What auxiliary pieces of property are part of the Mall purchase?
Jim Sides: The K & W Cafeteria property is part of the mall purchase. The County owns the property and K & W owns their building. The County leases the property and parking to K & W. The movie theater property is also a part of the mall purchase.
Steve Mensing: Any plans for these properties?
Jim Sides: We will continue to develop and maintain our relationship with K & W and look for them to stay for a very long time. Our plans to move other people to the Plaza and to keep it alive and viable will certainly be a benefit to K & W and the County as well. We hope to sign a lease for the movie theater property very soon.
Steve Mensing: Here’s the big question that a few of the Rowan County “concerned citizens” are asking: Will the Mall Purchase result in a major tax increase for Rowan County residents?
Jim Sides: Steve, the major tax increase I foresee in the future for Rowan County residents will be a result of additional funding for the schools. We can never seem to give them enough money! They are currently seeking $40.5 million dollars for capital needs and $3.2 million dollars for current expense. The debt service payment on the mall property will be $390,000 per year for 10 years. It will NOT result in a major tax increase for Rowan County.
Steve Mensing: What’s the estimated time before the West End Plaza is completely filled with both tenants and government offices?
Jim Sides: No real way of knowing just how long that will take exists. We plan to gradually develop the property over the next five to ten years. We may be able to get a better fix on the timetable once we complete our new capital improvement plan for the County.
Steve Mensing: Knowing that hindsight isn’t worth the currency its printed on, is there anything you might do different if you could do it all over again? Do you have any regrets about purchasing the Mall?
Jim Sides: I have no regrets about purchasing the mall property. I believe that five to ten years from now this will be seen as one of the smartest moves the County ever made.
Steve Mensing: I appreciate you providing the time and answering our questions.
Jim Sides: Anytime Steve.
