Developer outlines $146 million plan to remake Salina’s Central Mall, seeks STAR bonds approval

Rick Warner, a local developer, told the Salina City Commission on Sept. 8 that he and partner Dave Murfin have the city’s Central Mall under contract and are proposing a $146,000,000 redevelopment anchored by a convention center and hotel.

Warner said the plan would “convert the JCPenney space into a 60,000‑square‑foot convention center” attached to a convention‑style hotel and would also renovate the AMC movie theater, add four to five new restaurants and create an entertainment district. “We have 3,400,000 visitors to the mall last year,” Warner said, and added the team’s target is to raise annual visitation to 4,000,000 to attract national “home‑run” tenants.

City planning and finance choices matter because the developers told commissioners they intend to use state STAR bonds and other incentives to finance the project. “STAR bonds is a state program,” Jacob (city staff) explained during the meeting. He described the state review process and said the plan must go to the Kansas Department of Commerce, which would approve a project plan and the dollar amounts of any STAR bond assistance.

Why it matters: the redevelopment would reshape a prominent commercial corner in Salina and relies on incremental tax incentives rather than the city’s general‑fund borrowing. Warner and city staff said the legislation enabling mall redevelopment under STAR bonds became law this year but carries a deadline: a project plan must be approved by Dec. 31 to qualify. Warner told the commission he expects to work with city staff immediately and that a time to set a public hearing on STAR bonds could return to the commission within 30 to 45 days.

Details and context: Warner said the redeveloped entertainment program could include a Topgolf‑style venue and an indoor/outdoor entertainment district (he referenced Chicken N Pickle as a model). He estimated a full parking lot overhaul would cost about $8,000,000 and said much of the mall’s tenant base is on short, cancellable leases; he told the commission that if cancellable leases are excluded the property is “60% vacant.” He also said some current lease rates are as low as $3 per square foot and that sustainable retail typically requires much higher rents.

Financing mechanisms discussed included STAR bonds, community improvement districts (CID), tax increment financing (TIF), sales tax exemptions for construction materials and industrial revenue bond mechanisms; Warner said he would “try to use every incentive available” to make the project viable. City staff reiterated that STAR bonds capture an increment of state and local sales tax and that any incentives would be structured so that current sales and property taxes continue to be collected by taxing entities while increments are directed to the project until bonds are paid.

Commissioners asked about timeline, ownership of outparcels and tenant mix. Warner said the developers plan to buy vacant outparcels and any mall‑owned pads but that restaurants and national pad owners that own their ground (for example, Starbucks) would not necessarily be part of the purchase. He described the redevelopment as a multi‑year process and said some initial leasing and installation work could happen within months but that construction and full stabilization would take longer.

Next steps: commissioners expressed general support for staff and the developer to continue negotiations and to prepare a STAR bonds project plan. The commission did not take a formal vote on incentives at the Sept. 8 meeting; staff said the next formal action likely will be setting a public hearing on STAR bonds and returning a project plan for the commission’s review.