GRAND FORKS – Members of the Grand Forks Planning and Zoning Commission were receptive Wednesday to rezoning the former Macy’s location to accommodate a potential self-storage facility, but it’s possible the owners of the Columbia Mall could block that from happening.
Ryan Brooks, city planner, told commissioners that mall owner GK Real Estate has a reciprocal easement agreement, which is between adjacent properties and businesses in a shopping center or office park to create a cohesive development.
“That’s always kind of been another piece that the mall management and other entities within there have had to potentially block and make sure it meets everyone’s concerns,” he said. “That has an expiration date of 2028.”
The former Macy’s property is currently zoned for shopping center uses only. Midtown Ventures, which purchased the location, wants to rezone it to allow for general business use so it can implement the indoor storage facility.
Midtown Ventures is a partnership between the Crary family, which owns Crary Real Estate, and the Haug family, which owns storage facilities throughout the Grand Forks area.
Evan Shtulman, vice president of leasing at GK Real Estate, also submitted a comment to the Planning and Zoning Commission asking commissioners to reject the rezoning, saying it would have a negative impact on other retailers in the mall and limit future development.
“If the city allows a change in zoning to indoor self-storage use, it would be as negatively impactful as a condemnation for the remainder of the property,” he said. “The former Macy’s building is the front main entrance to the property, and any use other than retail would be disastrous for any future for this site.”
He also said GK Real Estate has seen other malls it owns going into “death spirals” after allowing indoor storage facilities to backfill former department stores, leading to the loss of existing tenants.
Brooks said even if the city decides to approve the rezoning, GK Real Estate could still prevent any changes until at least the REA expires.
Russel Crary of Crary Real Estate spoke to commissioners during the meeting, saying Midtown Ventures is “confident” that it can work something out with GK Real Estate and see the project through to completion.
Along with the storage facility, the development group is also considering potentially adding a quick-service restaurant or other outlying business to the portion of the parking lot that is included with the Macy’s property.
“I think there’s a lot of opportunity to hopefully get the ball rolling on a larger and grander redevelopment plan,” Crary said.
Crary added that First International Bank and Trust, one of the banks that owned the Macy’s property after it was foreclosed, and Scheels have expressed their support for the storage facility.
A letter submitted to the commission by Midtown Ventures also says that, even if the indoor storage facility can’t be built until the agreement expires, beginning the rezoning process now would allow the city enough time to do things like stabilize the tax base and possibly improve the corridor around the property.
Brooks said the city has in the past heard from other developers interested in adding an indoor storage facility to the mall, but has been resistant in allowing that kind of business up until now.
“(Midtown Ventures) has had some recent experience in doing some of this locally,” he said, referring to the indoor storage facility the group opened in part of the former Kmart building. “I think that space would have sat empty for quite some time.”
The Planning and Zoning Commission unanimously approved the first reading of the rezoning ordinance; it now has to go to the Grand Forks City Council for another first reading.
“Something has to happen at that mall, and the mall ownership isn’t interested in doing anything, so it’s nice to see a local person at least get something started,” Commissioner Meggen Sande said.
In other news, the commission:
- Advanced plans to redevelop Ray Richards Golf Course. Commissioners approved rezoning the course to allow for development of an apartment complex and outdoor driving range. The Grand Forks City Council will hold a final public hearing for the rezoning on Feb. 2.
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