HAMBURG, N.Y. — The many ups and downs at the McKinley Mall have put the Town of Hamburg in an interesting position. The sale of the mall to a new owner was completed in September 2021 but ever since there's been a lot of talk about new development and not much progress.
The mall is sitting in suspension. Two of its major retailers are gone, Macy's and Sears, online shopping is an ever-present dagger and the prime Hamburg real estate isn't valued what it used to be.
McKinley is far from the only mall in this position so why are others, including the Boulevard Mall, having better luck?
Kohan Retail Investment Group bought the mall for a modest $8.5 million. The McKinley Mall site had been in foreclosure since 2018. Kohan had signed a purchase agreement for the property in June 2021, but there have been a lot of bumps along the way. That includes legal objections raised by the Town of Hamburg and another prospective buyer, Benderson Development Company, which were ultimately dismissed.
Benderson, however, remains the mall's current developer.
Kohan had told our partners at Buffalo Business First that they were open to ideas for redevelopment and had success at other locations creating call centers and entertainment attractions.
So far neither has happened and it could be because Town of Hamburg officials say they have not received a plan from either the owner nor the developer about what they specifically want to do with the mall.
"We've established the McKinley Mall as a top priority that commercial development needs to happen. It's been identified as a declining area of our town, a huge part of our potential tax base going forward," said Hamburg Town Councilman Shawn Connolly.
While the Town of Hamburg continues to strongly encourage both parties to talk, Connolly told 2 On Your Side so far nothing has come of the pressure.
Ideas for the mall have included "everything under the sun" Connolly added, from building an ice rink to adding restaurants, constructing senior housing has even been proposed. Connolly said he expects more than likely the Kohan/Benderson plan will be for mixed-use development. Given that the mall is privately owned, however, the town has only had a few options.
"We want the McKinley Mall developed but that area needs a lot of work," said Hamburg planning consultant Drew Reilly.
Reilly has been working to develop a Comprehensive Plan for the Town of Hamburg that will map out its direction for years to come. That includes tackling the McKinley Mall and incentivizing development.
"So far we said we're interested in you presenting a plan. We did what we call incentive zoning if you [the mall] want to propose something we're willing to listen. We haven't directed you to do what we want but we're looking for someone to put a plan together," Reilly said.
"Like with the Boulevard Mall or the Eastern Hills Mall, the owners of those malls put the plan together and worked with the communities."
But just like Connolly indicated, Reilly said the two parties, Benderson and Kohan, have not presented a cohesive plan. 2 On Your Side hopes to speak with both Kohan Retail and Benderson regarding this topic in the future and plans to reach out during normal business hours.
"I think at this point there are multiple potential options and at this point, we haven't had an owner of the property step forward and make it crystal clear as to what their intention is and our hope is that will change at some point," Connolly said.
Town Supervisor Randy Hoak and Councilwoman Beth Farrell added that whatever revitalization does happen at the mall will have to consider the neighborhoods around the Milestrip and McKinley Parkway area. The two spoke to 2 On Your Side during a public hearing Tuesday to discuss and answer questions about the town's Comprehensive Plan.
The plan, which has been coming together over the past couple of years is set to be completed and passed by the Town Board in September 2022. It lays out a macro view of the town, its needs, amenities, what needs to change, and what projects are already leading to change. Hamburg neighbors are encouraged to learn about the plan, review the studies and maps that have gone into it, and can also comment on it online.
Also included in the plan was the consideration of a Bills Stadium Impact Area and ancillary development around the new attraction similar to what Orchard Park is looking at. The new stadium is set to move across Abbott Road and will straddle the Hamburg town line.
Future development of the Lake Erie Shoreline was yet another aspect of the Comprehensive Plan that garnered a lot of input from neighbors who attended the meeting. More info about other public projects, zoning opportunities, and land use proposals can be found by clicking each respective topic.
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