2006/09/14
Federated: If you're gonna take it, take it
The stores that are asking an appellate court panel to stop the Syracuse Industrial Development Agency (SIDA) from taking parts of their leases with Carousel Center were in court today.
SIDA is saying that it's only planning to take the parts of the leases that would stand in the way of Pyramid expanding the mall.
The stores, naturally, want their landlord to renegotiate those parts of the leases, or simply ask for approval, since that's really the issue.
Federated, which is the mall's biggest tenant with a Macy's store, a Lord & Taylor store, and whatever the Kaufmann's Furniture store is now that they've put the Macy's name on all the regular Kaufmann's stores, has told the court that the wording is too vague, and that if SIDA is going to take parts of the stores' leases, the agency should just take the leases.
The value, in Federated's estimate? $24 million.
And if they get their way on that, the other 11 tenants – which include large stores like JC Penney, Best Buy and Borders – are going to expect to get theirs.
And suddenly that $60 million Pyramid promised the city (well, $53 million, since $7 million goes to the county) in exchange for 30 years of tax breaks, will all go toward the eminent domain taking.
After that, the mall will be stuck with either having to renegotiate those leases from scratch, or else will be entirely without those tenants. And who's going to be the first moron to sign a lease for the expansion when almost half the leasable space in the original mall clears out?
Updated: The full story this morning lists the parts of the leases SIDA wants to take. Basically, it's all the parts that give the tenants the right to voice concern over the expansion (such as a loss of parking outside anchor stores). Federated says they want to keep their stores in Carousel – but Pyramid is going to have to negotiate with them to keep them there.
SIDA is saying that it's only planning to take the parts of the leases that would stand in the way of Pyramid expanding the mall.
The stores, naturally, want their landlord to renegotiate those parts of the leases, or simply ask for approval, since that's really the issue.
Federated, which is the mall's biggest tenant with a Macy's store, a Lord & Taylor store, and whatever the Kaufmann's Furniture store is now that they've put the Macy's name on all the regular Kaufmann's stores, has told the court that the wording is too vague, and that if SIDA is going to take parts of the stores' leases, the agency should just take the leases.
The value, in Federated's estimate? $24 million.
And if they get their way on that, the other 11 tenants – which include large stores like JC Penney, Best Buy and Borders – are going to expect to get theirs.
And suddenly that $60 million Pyramid promised the city (well, $53 million, since $7 million goes to the county) in exchange for 30 years of tax breaks, will all go toward the eminent domain taking.
After that, the mall will be stuck with either having to renegotiate those leases from scratch, or else will be entirely without those tenants. And who's going to be the first moron to sign a lease for the expansion when almost half the leasable space in the original mall clears out?
Updated: The full story this morning lists the parts of the leases SIDA wants to take. Basically, it's all the parts that give the tenants the right to voice concern over the expansion (such as a loss of parking outside anchor stores). Federated says they want to keep their stores in Carousel – but Pyramid is going to have to negotiate with them to keep them there.
