As dozens of Macy’s stores close nationwide, the city of Mesquite is trying to keep theirs open.
The city council earlier this month approved an incentive that would keep the anchor store at Town East Mall for at least five more years.
The proposed agreement between Mesquite and Town East Mall, LLC, an entity of Brookfield Properties, which owns part of the mall, would provide a 50% rebate on Macy’s two-cent local sales tax for up to 10 years.
“We've already had Sears leave the building and we don't want to have to anchor stores empty," said Council Member Elizabeth Rodriguez-Ross. “We want to incentivize Macy's to stick around also to improve their facade, make some improvements to their parking lot and just all-around reinvestment in the site itself.”
According to a city memo, Brookfield would conduct $250,000 in repairs and maintenance, with improvements to things such landscaping and lighting, and the city would provide $150,000 worth of entryway improvements as needed.
Kim Buttram, the city’s economic development director, said in the March 3 council meeting that the proposed agreement requires the Macy’s store retain a merchandise mix and image comparable to other North Texas locations, such as the NorthPark Center store, and maintain a minimum of $15 million annual sales to qualify for the rebate.
The proposed agreement comes after Macy’s announced the closure of 66 stores across the country, including five in North Texas. Buttram said Brookfield approached the city “as a pre-emptive and proactive measure” to keep the Town East location in place.
KERA reached out to Brookfield and Macy’s and has not received a response.
Christian Marquez, who works in the community economic field, grew up in nearby Pleasant Grove and has shopped at Town East his entire life. He said keeping an anchor store like Macy’s at the mall has an impact not only on the community, but other businesses.
“My parents, they go and maybe buy a shirt, but then they're stopping at Chick-fil-A, or stopping at a donut shop or stopping to get some coffee, or maybe get a [bite] to eat,” Marquez said. “It’s important to understand how it affects more than just that business.”
He said having a store like Macy’s close would have a significant economic effect on the area, including job losses, as well as loss of revenue for the city and the county.
Mesquite City Council Member Brandon Murden said many of the retailers in the mall depend on traffic generated by the anchors for their business.
“Losing another anchor would significantly impact the health of those retailers,” he said during the council meeting earlier this month. “The overall look and activity at the mall is also important. As the mall begins to be redeveloped, new retailers will look at traffic counts and store sales. If those are down, retailers will look to other areas.”
He also said the sales and property taxes generated by the retail areas provide significant revenue for the city and lessens the tax burden on residential property owners.
Macy’s and Brookfield still need to approve the proposed agreement.
Fellow council member Elizabeth Rodriguez-Ross said the mall is a big part of the city’s identity, and keeping an anchor store like Macy’s thriving attracts people to the area.
“I think that when most people think of Mesquite, they think of the mall as being the center of the city,” Rodriguez-Ross said. “You know, I think most people think that this is the downtown area when it's really not. It's a huge meeting place for our community.”
Priscilla Rice is KERA’s communities reporter. Got a tip? Email her at price@kera.org.
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