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BOW MAR — This tiny town of serene lakes and gently curving streets stands to bring in up to $2.4 million a year in sales tax revenues — boosting its municipal income by a factor of five — if a proposal to annex Southwest Plaza mall moves ahead.
Bow Mar Mayor Rick Pilgrim presented the figures to the Board of Trustees last week, as elected officials in the town of fewer than 1,000 residents get set to crunch the numbers on a controversial public-private partnership plan with mall owner General Growth Properties.
The agreement, which also involves Jefferson County, calls for Bow Mar to annex the 1.3 million-square-foot mall, and also the nearby Target store, and then collect half of a new sales tax — likely set at 3 percent — that would be imposed at the shopping center.
The other half of the proceeds from the new tax would go to a business improvement district dedicated to making infrastructure improvements at the mall, which is located at the northwest corner of South Wadsworth Boulevard and West Bowles Avenue in unincorporated Jefferson County.
Gregory Sims, senior general manager of Southwest Plaza mall, said the 31-year-old shopping center needs a source of revenue like the one being proposed in order to remain competitive in a challenging retail environment.
He noted that Southwest Plaza is the only regional mall in Colorado not located in a city or town.
“It gives us an opportunity to keep the property relevant into the future,” Sims said at a recent open house about the proposal. “It’s a chance to keep the property fresh and ahead of the curve.”
The mall is already undergoing an $80 million renovation that is slated to conclude in the fall of 2015, but Sims said that effort won’t address future needs like maintaining landscaping and updating amenities in and around the center.
“We need to keep the property fresh and ahead of the curve,” he said.
Aside from the obvious benefits of additional monies for a town with deteriorating roads and a lack of sidewalks, Pilgrim said, a revitalized Southwest Plaza mall stands to benefit not only Bow Mar but the entire quadrant of the metro area.
“If it helps the mall, it helps the whole southwest region,” he said.
But the mayor cautioned that much research must still be done on exactly what Chicago-based General Growth Properties, which owns 120 regional malls in the United States, is proposing with its annexation request and what costs it might place on Bow Mar.
The idea has so far been met with skepticism by many Bow Mar residents, who at public meetings last month questioned the long-term benefits to the town of annexation and worried about what would happen if the mall closed.
They also wondered who would be responsible for maintaining the stretch of Bowles Avenue that would connect Bow Mar with the mall more than 2 miles away — in what is known as a “flagpole” annexation.
Some want to make sure that no new residents, especially those located along Bowles in unincorporated Jefferson County, are allowed to come into the town through the annexation process. Pilgrim reassured those attending last week’s meeting that there would be “no deal” if neighborhoods abutting the annexation area decide to exercise their right to join the town.
“We are not compelled to do anything,” Pilgrim said of the proposal.
A new sales tax would have to be approved by the town’s voters — Bow Mar currently has no commercial properties — something the mall’s ownership is hoping to see make it onto the ballot this November. The annexation process would lag behind the sales tax vote by a month or so.
During last week’s meeting, it was made clear to the Board of Trustees that the agreement as written would have Jeffco continuing to do maintenance along Bowles. There was also talk about making sure the mall continues to cover the cost of law enforcement protection.
But John Ansted, a resident of south Jefferson County for 37 years, expressed skepticism about the deal. He said he is against “corporatism,” which he claimed would result from the proposed financial arrangement between a local government and a mall owner.
Another long-term Jeffco resident who attended the open house, David Everett, said while Bow Mar and General Growth Properties would benefit from the deal, the shopper would be left holding the bag.
“If you raise the sales tax, how is that going to encourage people to shop here?” he asked. “I’m not in favor of supporting private business.”
Jim Gunning, mayor of Lone Tree, said his city’s annexation a few years ago of Park Meadows mall, also a General Growth property, has been positive for everyone involved.
The fact that the mall’s portion of sales tax revenue goes to a business improvement district rather than the mall owner, he said, ensures that “the money stays here — it doesn’t go back to their corporate headquarters.”
“It helped to maintain our sales tax revenues but also surrounding property values,” Gunning said of the annexation. “If the mall becomes stale, then the property values go stale, too.”
John Aguilar: 303-954-1695, [email protected] or twitter.com/abuvthefold