Mall tenants gearing up for move; Lack of a finished deal makes situation more complicated

Published 10:14 am Tuesday, November 25, 2014

Vision 2020 Director of Vision Creation Laura Helle explains potential options Oak Park Mall tenants may have to find new spaces in Austin during a meeting Monday. Trey Mewes/trey.mewes@austindailyherald.com

Vision 2020 Director of Vision Creation Laura Helle explains potential options Oak Park Mall tenants may have to find new spaces in Austin during a meeting Monday. Trey Mewes/trey.mewes@austindailyherald.com

Business owners at the Oak Park Mall are preparing to move out by the end of the year, though some may face more obstacles in relocating.

Laura Helle, Vision 2020’s director of Vision Creation, told mall tenants Monday it could be difficult to secure grant money for relocation costs as some organizations could stuggle with giving money to a private business.

In addition, the city of Austin won’t know when negotiations to buy the mall site will come through until officials finish dealing with several major companies, including Shopko, Younkers, and Cinemagic Theatres. That means although the city likely would work with tenants on their move-out dates, the city won’t be able to legally do anything until it’s concluded the deal.

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In other words, mall tenants will have to make due with the Dec. 31 deadline to move out of the mall.

“It’s disappointing,” Helle said.

Several businesses and organizations, including Just For Kix, Acclaim Dance Studio, the Mower County DFL, Kids Against Hunger and A to Z Treasures, are still looking for locations.

Other businesses, like Impact Martial Arts and Fitness, Legacy Comics and Games, and Sears, have found new locations within Austin. Enchantertainment and Gypsy K Consignment have moved to Albert Lea.

A few businesses may outright close, such as GNC, Party Zone Entertainment and 3-Day Mattress.

The city of Austin and the Austin Port Authority announced a $3.2 million deal to purchase the Oak Park Mall site last month from Chicago-based Martin Graff of M H Graff & Associates Inc. and Martin Goldman of M J Goldman & Co. Ltd., the businessmen behind Oak Park Mall Ltd. Partnership and Oak Park Mall Land Ltd. Partnership.

The Hormel Foundation granted the $3.2 million to the city to purchase the site, while the city is expected to demolish most of the mall to make way for a 60,000- to 90,000-square-foot Hy-Vee grocery store.

The city’s purchase agreement includes acquisition of the entire mall facility — except Shopko, which is owned by the retailer — located at 1301 18th Ave. NW and an additional out lot located along 18th Avenue Northwest. That includes the mall property, Younkers and CineMagic 7.

At least one mall business have made the deal a positive, however. Legacy Comics will move to 501 First Ave. SW in December and recently launched an IndieGoGo campaign to help offset relocation costs. As of Monday, the crowdfunding campaign has raised about $1,300 toward Legacy’s $4,000 goal.

“It was a really good move for us,” Legacy owner Joshua Horvat said.