Despite its plunging property value, Landmark Mall remains years away from redevelopment that could bring new income to Alexandria and more convenience to residents.
Discussions about redeveloping the foundering property have been ongoing since 2004, when mall owner General Growth Properties first approached Alexandria with plans to turn the 55-acre site into a retail and residential center.
Delays have been constant, in large part because General Growth and the owners of the two anchor stores — Sears and Macy’s — must agree. Mergers in all three companies in the past two years have further delayed plans.
Alexandria Assistant City Manager Mark Jinks, who blames the mall’s lackluster performance on its aging building, said it would take several years before a new center could be built. The mall was constructed in 1965-66.
“It’s at the end of its life cycle and needs to be regenerated,” Jinks said. “It clearly dampens growth in sales and real estate tax.”
Those taxes are Alexandria’s two major income streams from commercial properties. Property taxes are based on the property value assessed by city staff.
The mall’s assessed value is now lower than that of T.C. Williams High School and comparable to George Washington Middle School, according to Alexandria property records.
Landmark Mall and the two anchor stores were valued at $83.62 million this year, while Washington Middle School was valued at $80.75 million. The new T.C. Williams High School was assessed at $105.3 million. Seven yearsago, the mall and anchor stores were assessed at more than $113 million.
“Frankly, that has had a major impact on overall tax collected last year,” said Stephanie Landrum, acting executive director of the Alexandria Economic Development Partnership.
Landmark Mall officials did not return a call seeking comment. Duncan Blair, an Alexandria lawyer working for General Growth, said only that the company was “committed to working with the city to … provide for redevelopment at Landmark Mall.”
Another hurdle for redevelopment may be General Growth’s request of financial assistance from the city — a request of about $60 million in 2004.
Jinks described the number as a “guesstimate” and said it is unknown what the city might be asked to provide until the owners firm up their plans.
The large property is highly desirable, given its location inside the Beltway and near Interstate 395 and the Van Dorn Metro station, Jinks said. Conversations about the owners’ plans have evolved to include a hotel and offices, as well as retail and residential space, he said.
Economic Sustainability Workgroup report
» Alexandria’s unemployment and crime rates are low. Per-capita income is high, and the population is well-educated.
» Job growth is flat. Hotel vacancy is down 6 percent, and the office vacancy rate is 12 percent.
» The group targeted Landmark Mall’s “bad shape,” saying it should be integral to redeveloping the city’s west end.
