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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums3 N.J. malls are going bankrupt, but towns that need their taxes hope they survive
Despite filing for bankruptcy this month, the Philadelphia-based company that owns malls in New Jersey hasnt missed any of its tax payments to the three Garden State towns that rely on them and town officials are hopeful the real estate firm will come out on top.
PREIT, which owns 22.5 million square feet of retail property over nine states filed for bankruptcy in November in an effort to reach an agreement with its creditors and stay in business. It cited decreases in operating income and lost rent due to COVID-19 closures in its third quarter statement as reasons for the downturn.
Two requests to PREIT for comment were not returned.
PREIT owns the Cherry Hill, Cumberland and Moorestown malls. It is the top taxpayer in each of the towns and floated the idea of a tax abatement in a letter to Gov. Phil Murphy earlier this year. The property taxes are current in all three towns through four quarters this year.
Officials from all three towns said reductions in assessed property values and taxes must be done through tax appeals. The company has won tax appeals in Cumberland and in Moorestown, where a successful appeal there in 2019 led to nearly $3.7 million in refunds and triggered a $45 a year tax hike for a typical homeowner, 72% of which was because of the mall repayment.
PREIT has won nearly $2 million in tax concessions from Vineland, since 2013 after successfully arguing the malls declining value which cut its property taxes in half.
PREIT pays nearly $19.5 million in taxes annually in Cherry Hill, $3.5 million in Moorestown and just over $2 million in Vineland. It has pending state court tax appeals in Moorestown.
https://www.nj.com/business/2020/11/3-nj-malls-are-going-bankrupt-but-towns-that-need-their-taxes-hope-they-survive.html
Sanity Claws
(21,840 posts)Don't know about the others.
Many stores have the option of ordering online but picking up in person. Apparently that has not saved the stores in this crisis time.
The Genealogist
(4,723 posts)Witness the many YouTube videos on the topic of dying, dead, abandoned and demolished shopping malls. On-line is the way of the future. COVID-19 is just speeding up the inevitable. In a way, purchasing goods has come full circle. Many people shopped by catalog a century and more ago. Wards, Sears and other companies were able to sell products to people in even the most rural areas. Often, what they could buy via catalog was unavailable locally, or significantly more expensive than what it would cost from a catalog if available locally. Amazon is really just a modern version of the Sears or Wards catalog.
In a way, it is sad to know the shopping mall is going away. I grew up in the late 70s through the early 90s, the heyday of the mall. The mall was not just a place to go buy things, but for people of my generation, it was social hangout. At the same time, I see malls as a force that wiped out much center city commerce. When our local mall opened, our center city became a ghost town. What I hate most about malls going away is the hulk left behind. A dead mall represents acres of asphalt, steel and concrete left abandoned like a child's old toy when the next big plaything comes around. At least sometimes they can be put to new use, but that doesn't always happen.
Klaralven
(7,510 posts)The Genealogist
(4,723 posts)It has been around for a good 15 years. Malls have been slowly declining for a long time.
Demovictory9
(32,421 posts)Demovictory9
(32,421 posts)configurations that don't translate to renovation into housing or other uses.
I recall the same issues when car dealerships were going out of business in ~2008.. configuration of heavily windowed building surrounded by excess parking lots made for difficult planning for reuse.
Klaralven
(7,510 posts)These have almost all died. Some were renovated with the enclosed 2-story atriums common in new malls. Some were restructured as a collection of free standing big box stores surrounded by parking lots.
maxrandb
(15,295 posts)I would want to know who these "towns" went for in the presidential election before we talk about "rescuing" them.
If they went for Donnie Dipshit and the Retrumplican Party, they must bend over and grab their "bootstraps".
Klaralven
(7,510 posts)Couldn't find details for Vineland, but Cumberland county went for Biden.
Moorestown has a Democratic council, and Burlington County went for Biden 59%.
JI7
(89,239 posts)Mosby
(16,259 posts)By engaging in predatory pricing of rents.