By: NICOLAS FIERRO
Salina Post
The Central Mall on S. 9th in Salina, is potentially looking to be completely converted into an estimated $146 million project.
After the Salina Commission meeting on Monday, September 8 developer of the potential project, Rick Warner presented to Commissioners a $146 million project called "Destination Salina" that would renovate the entire Central Mall property.
According to Warner, Destination Salina (if approved) would renovate the current AMC theater into a "state of the art" space, build a 60,000 sq. foot convention center with a hotel that would take place the JCPenney store, install a 'Top-Golf type facility' (not guaranteed) and a family entertainment district.
Before this project moves forward, the City would need to apply for STAR Bonds with the Kansas Department of Commerce (KDOC).
STAR Bonds stands for "Sales Tax and Revenue Bonds" that is a financing tool, allowing Kansas municipalities to issue bonds to finance the development of major commercial, entertainment and tourism projects. The bonds are paid off through the sales tax revenue generated by the development.
The intent of STAR Bonds, is to increase regional and national visitation to Kansas. In this case, Salina.
If STAR Bonds were to get approved by the KDOC, City Manager Jacob Wood explained the State would also need to approve the dollar amount of how much incentive(s) they would allow from STAR Bonds to be put into Destination Salina. Furthermore, Wood said the City would then need to conduct a public hearing and pass an ordinance that would create the district for it (designating a specific geographic area for a major entertainment or tourism-related development project).
Afterwards, the City would need to create a development agreement and work on details with additional incentives such as the Community Improvement District, Tax Increment Financing, Transient Guest Tax and Sales Tax Exemption on Construction Materials.
Commissioner Mike Hoppock clarified that this project will 'not risk any general local tax dollars.'
Mayor Greg Lenkiewicz commented on 'capitalizing' the Destination Salina project.
"The choice to either let the Central Mall run its course, which is obviously not a great one, and we have the opportunity to revitalize the area...We capitalize on it," he said.
"We either have to try and move forward with a plan like this, or we just allow the property to sit there," added Hoppock. "In 5 years, we could look like the mall in Topeka that has already been torn down."
"I know 20-30 year olds with something as simple as going to a movie theater, they are leaving Salina to go to Wichita or Manhattan for a better movie experience," said Commissioner Jerry Ivey. "I can easily see this bringing in more people to town."
Hoppock also said the City is 'not trying to compete' with the current activity in downtown, but believes in 'taking care' of the Central Mall area.
"We have the ability to sustain both," he said.
According to Wood, the next steps for Destination Salina would be to conduct a public hearing for STAR Bonds, which is anticipated to possibly take place in 30-45 days.