Mall asks city to extend development credit

The owner of Mountain Plaza Mall is asking the city to extend the development charge credits for redeveloping the once-aging shopping mall for another three years.

Christian Kieller, a land development associate for SmartREIT, which owns the plaza, said the development charge credits resulting from demolition and redevelopment will go toward the remaining 46,608 square feet of development from the original 256,957 square feet.

In dollar terms, it amounts to about $500,000, say city staff.

The current development charge credits expire in January 2017.

This would be the second time, if approved by councillors, the city has extended the development charges credit for the project. It was done for 2015 to 2017.

Kieller told members of the audit, finance and administrative committee on Dec. 12 that the original completion date for the redevelopment of Mountain Plaza Mall on Upper James Street was 2014.

But a slow economy and inability to entice tenants pushed the construction into 2018-2019.

The company purchased the plaza in November 2006, with plans for a $50-million redevelopment.

Kieller said the development charge credits “played a crucial role in the financial decision to acquire and redevelop” the Mountain shopping plaza.

Over the years, the owners have relocated existing tenants, rebuilt Walmart, constructed a new LCBO building, installed a new enclosed entrance, updated the parking lot and added a number of new tenants, including CIBC and Shoppers Drug Mart.

Kieller said the remaining 37,766 square feet of space will be constructed in the 2018-19 season.

In the meantime, a new pet store will open in early 2017 and a Taco Bell is scheduled to open in late 2017, he said.

Ward 7 Coun. Donna Skelly said she “supported” the company’s request from the city.

The committee referred the issue to staff for review.