PARMA -- City Council and the owners of The Shoppes at Param -- formerly Parmatown Mall -- have entered into a partnership for the $70 million project to redevelop the mall.
According to a news release from Phillips Edison & Co., the owner of the property, the project will create 700 construction jobs and up to 2,000 retail and office jobs over the next decade.
The project includes the addition of a Dick's Sporting Goods and the expansion of an existing Wal-Mart as well as major improvements, renovations and demolition of existing portions of the mall.
"We are pleased to announce this major public/private partnership for the redevelopment of this iconic local retail center, and we thank the Parma City Council and the city's administration for working so diligently on this agreement," said Roy Williams, senior vice president of Phillips Edison's Strategic Investment Fund. "We consider The Shoppes at Parma a new era for this legendary retail and community gathering location and we are confident this project will help spur economic growth and opportunity."
Parmatown originally opened more than 50 years ago. Williams pointed out that the redeveloped Shoppes at Parma will attract shoppers from Parma and its surrounding communities.
"People who grew up with this mall and those in younger generations will equally enjoy visiting The Shoppes at Parma following the reinvention of this great retail tradition," Williams said.
The Phillips Edison & Company development plan includes:
- New construction of a Dick's Sporting Goods store.
- An expansion of the Wal-Mart store.
- Construction of new retail stores between Dick's and Wal-Mart.
- Construction of new out lot buildings in the mall's parking lot.
- Major renovations of the mall's interior, the Marc's Strip Center façade and the adjacent four-story medial building on the property.
- Site improvements that include asphalt repairs and replacement, new parking lot lighting, landscape islands, landscaping, new bio-retention areas for storm water management and out lot development.
- The demolition of the former Macy's department store; a portion of the enclosed mall; the existing Dick's Sporting Good's store; and the existing façade of the Marc's Strip Center.
Tax Increment Financing, or TIF, is an economic development tool that allows a developer to recapture the increase in property values created by a project to finance a portion of a project.
Phillips Edison & Co. is required to make improvements to the property that would create a future increment property value of $56 million.