High North gets boost through grant, TIF deal
Worthington council earmarks $2.5 million
The Worthington City Council has approved a grant and tax-increment-financing package to help a Texas company start redeveloping the Shops at Worthington Place mall.
The council earmarked $2.5 million to help Direct Retail Partners, based in Dallas, start converting the mall into into a mixed-use commercial space called High North.
Direct Retail Partners paid $19.8 million for the mall in 2020, with plans to convert it into an openair retail center with office buildings. After vacating much of the northern portion of the shopping center, little work has been done on the project.
The city’s grant, which would be paid in five installments of $500,000, would go toward the construction of a 6-story, 75,000-square-foot office building on the south side of the property – one of two major office buildings on the site.
This is a payroll grant, according to city economic-development director David Mccorkle, and is based on the expectation that the office building would generate at least $30 million in annual payroll.
Council also approved a TIF package to help developers pay for the construction of a 3- to 4-story, 375-space public parking garage on the south side of the site.
Mccorkle said this financing package will divert a portion of the developer’s property taxes each year to help pay for the garage, which is expected to cost about $12.1 million.
The city also has set up a revenue-sharing agreement with Worthington Schools, whereas the district would receive 40% of income-tax revenues generated by payroll at the south office building in years 6-10 following construction and 20% in years 11-30, according to a city staff memo.
The city is also supporting the High North project by helping finance offsite improvements such as a new Worthington sign and fencing along High
Street, Mccorkle said.
The city plans to reimburse developers up to $1.5 million under the development agreement that was approved in 2021.
“They’re going to make those improvements on our behalf, and we will reimburse them for those,” Mccorkle said.
Although the rezoning already is in place, Mccorkle said, developers are looking to change the sequencing of the project. Originally slated to begin work on the north side of the site, developers are opting to begin construction on the south side instead, he said.
There is no timetable for when construction could begin, he said.
Direct Retail Partners CEO David Watson previously told Thisweek that developers are looking to identify and secure tenants first.
At council’s June 6 meeting, Watson indicated the company has some tenant agreements in place, but he wasn’t prepared to announce them yet.
“We have some very fun announcements for tenants that have committed that I just can’t mention just yet, but those are 45 to 60 days out,” he said. sborgna@thisweeknews.com @Thisweeksteve