DeWITT, N.Y. — Onondaga County announced it has reached an agreement with the owner of ShoppingTown Mall on a plan that would have the county redevelop the property.
“Through mediation between the County of Onondaga, the Town of DeWitt, the Jamesville-DeWitt School District, and Moonbeam Capital [Investments, LLC], we’ve come to an agreement that will be before the bankruptcy judge in December,” Onondaga County Executive Ryan McMahon said during a Wednesday news conference at the Oncenter.
Under the agreement, the parties involved will pay Moonbeam $3.5 million, and Moonbeam will transfer the ShoppingTown Mall property, the nearby Scotch ‘N Sirloin property, along with the KeyBank location, according to McMahon. The Town of DeWitt and the Jamesville-DeWitt School District will contribute “roughly about one third” of that $3.5 million payment, he added.
“The IDA will then put forward a comprehensive [request for proposal (RFP)] process to all suitors. We will be looking for best uses. Sales price obviously will be part of this, but this won’t be a fire sale,” said McMahon. “Our goal has always been to have site control and then to make sure that this property [has] highest and best use moving forward.”
After a proposal has been selected for use, Onondaga County and Moonbeam will split the revenue from the sale, based off the sales price on a sliding scale, McMahon said.
For example, if the parcel sale is between $0 and $4.5 million, the county will receive 90 percent of the proceeds and Moonbeam Capital will get 10 percent.
If the price is in the $4.5 million to $12.5 million range, the county will get 80 percent of the proceeds and Moonbeam Capital will receive 20 percent.
If the sale-price range is between $12.5 million and $16.5 million, the county would receive 70 percent of the proceeds and Moonbeam Capital would get 30 percent.
Anything over $16.5 million, the county receives 20 percent, Moonbeam would get 80 percent of the proceeds.
“This deal would happen as soon as the judge reviews it in the bankruptcy court in Pittsburgh,” said McMahon.
This is also pending necessary approvals from the Jamesville-DeWitt School Board and the Town of DeWitt board [of trustees] and any county legislature approvals, if necessary, he noted.
McMahon also added that the Chili’s Grill & Bar restaurant property isn’t part of the deal but if a developer wants the property through the RFP process, the parties have agreed to a purchase price on that property as well.
McMahon credited the mediator involved with the bringing all the parties together, helping in the process of “finding some common ground.”
“Overall, we’re very pleased,” he said. “This gives the county the opportunity to control what we view as a very valuable piece of real estate and very strategic piece of real estate. It will allow us an opportunity to get money paid back to us, and, certainly the most important part moving forward — through a process we believe there will be a lot of interest — this will be an economic engine again for the community.”
Moonbeam Capital Investments, LLC has offices in New York City, Las Vegas, and Atlanta, per its website.