Retail trends threaten business as Providence Place Mall owners seek to extend the 1996 property tax treaty for another 20 years while trying to “reinvent” the downtown shopping complex. I am warning you.

The mall’s first tax deal is set to expire in 2028, and if no new deal is signed by then, the taxes for building owner Brookfield Properties will be similar to most brick-and-mortar retailers. And it will soar as mall revenues continue to falter.

This year, the mall paid the city $1,006,234 under existing tax agreements. Without a deal, the mall’s taxes are estimated to be up to $25 million annually.

“…e-commerce growth accelerated by the COVID-19 pandemic has forced more people to buy traditional retail goods online, leading to the closure of domestic retail department stores, including Nordstrom and JC Penny. The text of the proposed deal, filed at , states that “competition for retail mall tenants in the market is challenging the viability of the Providence Place Mall.”

Providence Place Mall

The proposed tax treaty extension will begin in 2028, and mall owners will pay $4.5 million in taxes each year through 2048. Also, if Moll’s income increases or decreases by 10%, he can increase or decrease his tax payment by 10% every three years. .

The city has given property tax incentives to many large commercial properties in recent years, but these deals are typically made in exchange for new developments that are expected to generate additional economic activity. increase.

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