“Do the stores get enough foot traffic to remain viable? Is the mall considered high enough quality space to attract new retail tenants? Keep the ones we have? I don't know the exact answer to these questions.”
Exactly. We are being told by the RLF that the mall is not sustainable and that therefore we need to redevelop it. However, the P&L is the best and *only* information we have and it does not show a lack of financial viability. If there is any evidence that suggests otherwise, the RLF has not shared it. The answers to the questions posed have not been provided. Without those answers, claims such as “we need to help the mall remain viable” are unfounded. One important note: a fully depreciated building, like a big portion of the mall is today, has lower accounting costs and therefore can charge lower rents. If a developer comes in and redos the mall, costs would increase very materially and a developer would be forced to raise rents to recoup its investment. If, as you imply below, the tenants are in a marginal position today, a raise in rents would certainly drive them out of business. I haven’t even mentioned the loss of commercial parking which is bound to happen, which would negatively impact foot traffic. On Sat, Dec 16, 2023 at 4:01 PM Rich Rosenbaum <[email protected]> wrote: > I would note that mall 'viability' goes beyond its P&L statement. Do the > stores get enough foot traffic to remain viable? > Is the mall considered high enough quality space to attract new retail > tenants? Keep the ones we have? > > I don't know the exact answer to these questions but a mall without > tenants won't remain profitable. > > As has been pointed out, the challenges we face are complex and > multidimensional and (in my opinion) cannot be reduced to any single factor. > > Rich Rosenbaum > member of town committees but speaking as a citizen of Lincoln > > > > On Sat, Dec 16, 2023 at 3:33 PM Karla Gravis <[email protected]> > wrote: > >> I would like to address this statement in the email below: >> >> “The facts are that the Mall needs help to remain viable” >> >> Let's not conflate the RLF finances with the Mall finances. >> >> The 990 filings indicate that the Mall itself has been consistently >> profitable over the last five years >> <https://projects.propublica.org/nonprofits/organizations/46132391/202222509349300837/full> >> : >> >> - 2018: $80,399 >> - 2019: $191,279 >> - 2020: $122,519 >> - 2021: $111,795 >> - 2022: $164,571 >> >> Now, in terms of the RLF finances, if there is a concern about its >> sustainability, perhaps there should be a reflection about its cost >> structure. The Concord Land Conservation Trust, which oversees double >> the acreage (more than 1,000 vs more than 500 acres in Lincoln), has >> expenses of $187K versus $334K for the RLF/LLCT >> <https://docs.google.com/spreadsheets/d/1rFLf4j0m6zzM3qOox3b_I0xDz2RCX0Bxxw_W8msll_A/edit> >> . >> >> >>
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