BOARDMAN — Township officials say they have “very low” concern regarding the fate of the Southern Park Mall.

Washington Prime Group, a Columbus-based owner and operator of the mall, is in debt negotiations after not making a $23.2 million interest payment in February. Still, Washington Prime has said its plans to continue investing in the mall are ongoing.

But what if?

Township Administrator Jason Loree gave a “worst-case” scenario.

Should the mall close in the future, “it still has to pay property tax,” Loree said. It’s also “highly unlikely” that the mall, in an extreme situation, would be planned for takedown and rehabilitation, he said.

The central location makes the property a marketable place, Loree said.

Illustrating the ease of accessibility, Poland resident Stephen Mezzapeso said he and peers from Enterprise Rent-A-Car utilize the mall area “because it’s convenient.”

Oftentimes, he goes on the premises for lunch, he said, due to its central location.

Colleague and friend Rich Kyle of Canfield echoed that he goes to the mall for lunch because of its location, but also shops there with his wife on occasion for its large department stores.

Both men said they are not afraid the mall will close.

INVESTMENT

Although talks of defaulting on payments have made headlines, Washington Prime confirmed through a news release the company is “committed to investing more than $30 million in Southern Park Mall over the next few years, of which approximately $9 million has been invested to date.”

Those investments include storm water infrastructure, a hike and bike path across the mall property, green space called DeBartolo Commons, a connection from DeBartolo Commons to Boardman Park, a retail and entertainment hub, and expansions in real estate property, sales and income tax bases.

The project of revitalizing the mall is “crucial, as it stabilizes the space, which is highly marketable,” Loree said.

An indoor golf center, “The Bunker,” along with Bogey’s and Steel Valley Brew Works, as well as other businesses, already have signed leases and construction is ongoing, Loree said, which shows promise.

“There isn’t much concern on this end,” he said.

Brad Calhoun, township trustees board chairman, said he is pleased with ongoing discussions with Washington Prime, and also doesn’t anticipate a “worst-case” scenario.

“Currently, we have no reason to believe Southern Park Mall will close. The end product will be well-received by township residents,” Calhoun said, adding: “We are pleased with their communication and transparency on the project.”

Recently, Calhoun participated in a call with Washington Prime, and following the conversation he felt “confident” the construction at the mall will continue.

MORE STORES

On Thursday, Amber Quarterman of East Liverpool visited the mall in Boardman.

She makes the commute, she said, because compared to the Beaver Valley Mall in Monaca, Pa., Southern Park has more stores.

Quarterman said she was unaware of financial restructuring, adding she is not concerned the mall could close.

As projects are completed, she said she will continue to visit the mall to shop and explore the new spaces.

From a township zoning perspective, director Krista Beniston explained the property is zoned “regional business.”

That means any businesses permitted in regional business-zoned areas would be permitted at the site, “whether they were part of the mall as we know it, as an out-lot or part of a development project,” Beniston said.

Mixed-use buildings also are permitted in the regional business zone, Beniston said.

In a worst-case scenario, any project would have to comply with zoning regulations, including storm water, landscaping, parking and architecture, Beniston said.

INTEREST PAYMENT

In February, Washington Prime informed the U.S. Securities and Exchange Commission of its plan to skip the $23.2 million interest payment and use a 30-day grace period to hold more discussions with lenders.

Washington Prime’s board of directors “has engaged advisers to help the company negotiate with certain of its corporate debt holders,” a news release states.

The pandemic has presented challenges, Washington Prime said, and the negotiations are expected to “significantly strengthen its financial position,” and the company is “confident that the process will enable Washington Prime Group to emerge stronger.”

Recently, Bloomberg reported that Washington Prime is preparing to file Chapter 11 bankruptcy.

The investment bank for the company, Guggenheim, has discussed with prospective lenders a possible $150 million debtor-in-possession loan.

“Washington Prime Group has no further comment on debt negotiations,” a spokesperson for the company stated, noting information is available in the disclosures on the investor relations section of its website.

As negotiations continue, the mall will function as usual, the company said.

Planet Fitness is anticipated to move and open in its new location in the mall next month. The gym now is located in the Boardman Plaza on U.S. Route 224 near Hitchcock Road.

Washington Prime’s reinvestment will push other places to become creative with how to market and keep tenants, Loree said.

afox@tribtoday.com