Council approves creation of second‑phase CID for Hutchinson Mall redevelopment; developers pledge parking and outward‑facing tenant work

Hutchinson City Council late May 6 approved an ordinance creating a community improvement district (CID) to support Rockstep Capital’s phase‑2 plan for the Hutchinson Mall and approved an amended development agreement to implement the change.

What the change does The existing 1% CID that covers most mall businesses would remain in place until Rockstep meets agreed benchmarks for outward‑facing tenant space in phase 2. Once the developer achieves the benchmarks required under the amended development agreement, the existing 1% CID would turn off and a 2% CID would begin; the 2% CID would be a pay‑as‑you‑go reimbursement mechanism and would run for a 22‑year term under the developer’s agreement with the city. The parties also confirmed an existing real‑property TIF remains as originally approved and that the sales‑tax TIF term is not being extended.

Developer presentation and city staff explanation Angela Richard, director of finance, explained how CIDs work: businesses collect the extra CID sales tax from customers, remit it to the state, and the city then reimburses the developer for eligible expenditures against the CID revenue; the city keeps a 5% administrative fee. "You file a CID petition, we hold a public hearing, the developer spends the money on eligible expenses, and then when we tell the state the CID is established, businesses charge that extra percent to customers and those proceeds are reimbursed to the developer," she said.

Mark Abbott, attorney for Rockstep, and Rockstep personnel presented phase 2 as a response to changing retail patterns. Abbott said the mall’s interior no longer supports modern retail tenants and that the plan would close most interior walkways, relocate some existing tenants to outward‑facing spaces, and repurpose remaining interior space for mixed uses. Abbott described parking-lot resurfacing and repairs around the ring road as part of the phase‑2 plan.

Concerns from council and public Council members and public commenters pressed developers about operational details and community impacts. City staff and Rockstep representatives acknowledged interior tenants that occupy low‑rent interior spaces — including several fitness businesses — may not be able to relocate within the mall’s new outward‑facing footprint. A resident said, "My concern [...] is the community impact. Because Reno County is in a study that I read... is like the eighth most obese county in the state of Kansas... My concern is... for the health of the community in that regard." Rockstep said they were willing to discuss relocation options but stressed that interior tenants often pay rents too low to cover interior maintenance and operating costs.

Financials and benchmarks Rockstep requested the 2% CID for new tenant space and agreed the 2% would replace — not add to — the existing 1% once phase‑2 benchmarks (filling specified outward‑facing square footage) are met. Rockstep presented a budget for phase‑2 costs (tenant build‑outs, parking repairs, ring road repairs, site signage and other line items) and described a mix of "dark shell" and tenant‑finish approaches depending on incoming leases.

Council action Council approved an ordinance authorizing creation of the CID and a resolution approving the amended development agreement authorizing the mayor to sign. Recorded votes were yes from Richardson, Garza, Fast, Meggers and Goss.

Next steps and community follow-up Rockstep said it will begin outward‑facing tenant build‑outs and specified parking repairs in its spring maintenance program. The city will monitor reimbursements and ensure eligible expenditures comply with the development agreement; the city will likewise continue to enforce property‑maintenance code requirements at the mall and surrounding parcels.

Ending The phase‑2 CID creates a path for Rockstep to repurpose much of the mall’s interior and to seek outward‑facing tenants; the plan includes resurfacing and maintenance commitments but raises community concerns about whether some existing interior businesses can relocate within the mall or elsewhere.