West Valley City • Economic development staffers are recommending that the city put $5 million toward the expansion and renovation of Valley Fair Mall, a move they believe could have a big financial return.
The remodeling will cost $40 million. It is conservatively estimated to increase annual sales at the shopping center by $50 million to $70 million, putting an additional $560,000 of tax money a year in city coffers, according to Redevelopment Agency Administrator Brent Garlick.
Difficult market conditions have limited the amount of money the shopping center's owners can borrow and the boost from West Valley City would close a financial gap, he said.
City Council members are scheduled to vote Tuesday on the proposal. The redevelopment dollars would help with building acquisition, demolition and infrastructure improvements.
Also on Tuesday, Valley Fair Mall, 3601 S. 2700 West, will hold its annual Christmas tree lighting ceremony at 6 p.m. The ceremony will include the announcement of a major new tenant.
The once-declining mall was purchased by Utah-based real estate developer Satterfield Helm in 2005, with New York-based Coventry Real Estate Advisors joining as a financial partner in 2008. Coventry III/Satterfield Helm Valley Fair LLC and an affiliate, Satterfield Helm Management, are handling the mall's redevelopment and management.
Satterfield Helm began renovating the mall in 2006 with the construction of a 150,000-square-foot Costco, followed by an additional 130,000 square feet of stores and restaurants, as well as a large outdoor plaza and a new access road.
The latest round of work, which is expected to complete the Valley Fair redevelopment, includes expansion of the east side of the mall; renovations on the east side façade; remodeling of the inside corridors; and expansion of the "junior anchors" on the northwest side.
The work is scheduled to begin in 2012 and be completed in 2014. At completion, the mall will have a footprint of more than 1 million square feet. The mall now has about 120 stores, restaurants and services.
According to West Valley City, business and traffic have been increasing at Valley Fair. There were about 2 million auto visits to the mall in the first six months of 2011, a 20 percent increase compared to the same period last year.
West Valley City Council members are scheduled to vote Tuesday on whether to put $5 million in Redevelopment Agency funds towards the expansion of Valley Fair Mall. The meeting begins at 6:30 p.m. at City Hall, 3600 S. Constitution Blvd. (2700 West).