What’s next for Oakdale Commons? What to know about tenants, taxes, timelines at the mall
The Oakdale Mall officially has new ownership, a new name, and soon, some new tenants.
Spark JC, an LLC formed by the Matthews and Newman families, announced this week it has closed on the property long known as the Oakdale Mall. Spark JC has rebranded the site as the Oakdale Commons, reflecting its transformation into a mixed-use facility that will provide a “comprehensive lifestyle experience” for the Greater Binghamton Area.
The acquisition has been in the works for several years. The Matthews family acquired the Sears building at the Johnson City mall in 2019 and set about restoring its place as a hub of activity.
As the Sears building was successfully redeveloped with the opening of the popular Beer Tree Brew, the arrival of Broome County employees and the coming debut of the Lourdes Wellness Center, the Matthews kept their eyes on a bigger prize — revitalization of the entire mall, turning a symbol of decline into a Broome County destination once more.
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“I think our goal is simple. It’s to replicate what was done successfully in the former Sears building,” Doug Matthews, a co-founder of Spark JC, said this week after closing on the property. “When that’s finished it’s a $30 million renovation and it’s going to employ 500 people in the building. We expect 8,000 visitors a day. That’s just the former Sears building."
What’s coming to the Oakdale Commons?
The success at the Sears building has provided a proof of concept that Spark JC hopes to duplicate across the remaining 573,000 square feet at the mall. The vision for Oakdale Commons includes a mix of traditional retail and dining with office space, wellness, service and leisure opportunities.
Matthews said Spark JC is in talks with a number of national tenants who are exploring the prospect of setting up shop in Broome County. The company is working with existing mall management, the Spinoso Real Estate Group, and current tenants on its plan for the future.
The Oakdale Mall witnessed an exodus of anchor tenants in recent years, including Macy’s, Sears and Bon-Ton, and its mortgage fell into foreclosure in 2019. Malls across the country have faced a similar reckoning as consumer habits have shifted online
The mall remains perfectly placed to draw in traffic from around the region — it’s across the street from Wegmans, accessible from state Route 17/Interstate 86, near the I-81 exchange, and just a few miles from Binghamton University.
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Broome County Executive Jason Garnar hinted future tenants may include a few national restaurant chains long requested by the Broome County community. Garnar recalls spending countless hours in the mall as a youth in the 90s.
“It’s a great opportunity for a company if they’re looking to put a couple hundred jobs in a place,” said Garnar, who believes the setup would aid in employee attraction and retention. “Why not put it in the mall where you have all these things and really enhance the experience that an employee has working there?"
How a lawsuit will impact taxes in Broome County
Today’s optimism is a long way from 2019, when the mall fell into foreclosure and carried a $50 million loan balance. The Oakdale Mall’s previous owners sued local taxing entities for $13 million in overcharges. The case was settled earlier this month, clearing the way for Spark JC to close on the property.
A State Supreme Court decision awarded a tax refund of $6.5 million, with the Johnson City Central School District ($3.4 million), the Village of Johnson City ($1.9 million), Broome County ($918,000) and the Town of Union ($233,000) all on the hook to make up the difference. The decision also lowered the assessments of several parcels associated with the property, most notably at 601 Harry L. Drive, which was lowered from around $2.4 million to $402,000.
Johnson City Mayor Martin Meaney said the village is covering its payment with a bond, given low interest rates. The village is in the preliminary stages of preparing its next budget and is uncertain how much the payment and lower assessments will impact its financial outlook.
“If the plans they have come to fruition, it’s going to be an asset to the entire region,” said Meaney. “I’m excited to see some new life come into the mall. They’ve done a nice job so far at the north end of the mall. I think now they’ve got the entire mall they have a really good vision and it’s going to be destination area again.”
While Spark JC was not involved in the lawsuit, Matthews said its planned redevelopment of the mall helped facilitate a settlement.
“I think it saved millions of dollars for the municipalities over any of the alternative options they faced,” said Matthews.
Garnar agrees. A few years ago county officials were worried the prime real estate might be bought cheaply and turned into a large storage facility with minimal local employment, or, worse, be foreclosed upon — a “nightmare scenario,” said Garnar.
“There was a lot of concern in the community that the mall could go dark,” Garnar said. “As a result of the sale the local ownership group was able to construct a more favorable tax settlement for the municipalities than what the original owners were aiming for.”
In August, the Agency, Broome County’s economic development arm, approved a 25-year payment in lieu of taxes agreement for the Johnson City property, including total tax exemptions of about $9.4 million. Under the agreement, Spark LLC will pay $489,000 in taxes for the first five years and it would increase to more than a million dollars in the final three years, including about $1.1 million in the final year. In 2019, the mall was responsible for $3 million in annual property taxes due to the Johnson City School District, the Village of Johnson City, the Town of Union and Broome County.
The county is hopeful the decline in property tax revenue generated by the mall will be offset by sales tax gains and the butterfly effect of increased employment at the site.
Timeline for new activity at the Oakdale Commons
All told, the Oakdale Commons project is estimated to ring in at around $117 million. The effort will not be undertaken all at once; instead, it will be driven by the demands of tenants who sign up to locate in the mall.
“As we sign tenants, their schedule will dictate our schedule,” said Matthews.
The first new tenant announcements could come over the next several months, and Spark JC hopes to launch infrastructure improvements and construction work on parts of the project later this year.
“Some outparcels would probably be first up,” said Matthews. “We’re going to get started just as soon as we can, but you’re looking at a multi-year project in terms of a full build out. The Sears building has taken several years just on its own.”
Both the Matthews and Newman families have a track record of entrepreneurial success in Broome County. Collectively, they have developed the mix of retail, office, medical and industrial spaces that have been targeted for Oakdale Commons.
“When we see an opportunity to help the community, we like to step in and do it,” said Matthews. “We’re not perfect, we’re not always 100% successful, but we always give it our best effort and many times, thankfully, we have been successful doing it.”
Chris Potter can be reached at cpotter@gannett.com or on Twitter @ChrisPotter413. To get unlimited access to the latest news, please subscribe or activate your digital account today.
This article originally appeared on Binghamton Press & Sun-Bulletin: Oakdale Mall transformation: What to know about timeline, taxes
