Brooklyn Center officials are hoping the loss of Macy's at Brookdale Center may spur efforts by mall owners to sell or redevelop the ailing shopping center.
"We view Macy's leaving as a possibility for change," said Mayor Tim Willson. He noted that Macy's was the third anchor store to close, leaving only one anchor, Sears. "The banks or [mall] owners may be wondering how they will get their investment back," Willson said.
City Manager Curt Boganey said closing Macy's gives mall owners or developers more options, including demolishing the 42-year-old former Dayton's department store, remodeling it for smaller businesses or finding a new anchor.
"When you are dealing with that much vacant space, and I presume lost revenues, there is a greater incentive to do something to find a new owner or developer," Boganey said.
A commercial real estate developer expressed interest in the mall in late November, but Boganey said the company hasn't called back and he doesn't know if it is still interested. He said mall owner Brooks Mall Properties failed to make mortgage payments and its lender has taken over. The City Council approved a Brooks proposal in August 2007 to locate a Super Wal-Mart in the space of former anchor Mervyn's. But that plan was snared in a lawsuit.
"We are not pursuing this site at this time," Lisa Nelson, a senior Wal-Mart manager and spokeswoman, said last week.
Wal-Mart's proposal initially was stalled after anchor Sears sued Brooks Mall in late 2007, Boganey said. He said Sears believed its mall use agreement gave it the right to approve new stores that affected mall parking or access roads. In October, a Hennepin County judge ruled that Sears was entitled to a trial. The case is tied up in appeal motions.
Macy's owns its 195,000-square-foot building and will try to lease or sell it, the company said recently.
