City staff report outreach but no buyer for former Kmart Plaza; ordinance to target long-term commercial vacancies proposed
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Summary
Committee received an update from OPED that TransformCo, owner of the former Kmart Plaza, has been contacted but remains unresponsive to buyers; city staff said they are exploring an ordinance to raise vacant commercial-property fees to discourage long-term vacancy.
Committee members on Monday heard an update from the Office of Planning and Economic Development on the former Kmart Plaza site.
Aaron Vega of OPED said staff have reached out to TransformCo and to potential buyers; TransformCo has not been responsive to some inquiries. OPED reported that there are no tax delinquencies on the property and no new owner listed. Staff said discussions with TransformCo and potential brokers have been ongoing since September but that such commercial deals can take considerable time.
Councilors expressed frustration that a large commercial parcel adjacent to highway access is sitting vacant while local developers report they cannot get return calls from the owner. One councilor said the city is considering a proposed ordinance change that would increase a vacant-building fee for large commercial properties to create more leverage over long-term out-of-state owners who leave buildings empty while taxes are current.
Vega said the property has potential for redevelopment and that different reuse options — from retail to housing — are being discussed, but that TransformCo has declined to pursue demolition or partial takedown at its cost. OPED said retail demand in general has softened and that redevelopment options would need careful market review.
The committee recorded that an order requesting an update on the former Kmart Plaza had been complied with and voted accordingly.