Skip to main content

Merchants approve mall pact

By Howard B. Owens

Four decades of wrangling, including five lawsuits, between the city and mall property owners is close to finally being wrapped up after a majority of property owners tonight voted to approve a settlement agreement. 

The agreement gives the city control over, and responsibility for the mall concourse. 

This settlement is the biggest step, but not the final step, in resolving this long-standing dispute. The vote for the settlement was not unanimous and if any mall property owners fail to sign the agreement it would drag out the legal process. Recalcitrant owners would have to appear before a judge and explain, show cause, for their failure to sign.

Most of the mall property owners coming out of the closed-door meeting where they voted on the agreement tonight were smiling. Robert Chiarmonte, chair of the Mall Merchant Association, said he was glad the settlement was finally approved. 

"The positive thing is that this year the maintenance fee, which will actually be called a user fee now, will stay level or somewhat level for about five years. We have our easement. We don't go to court. That's a good thing."

The protection of property owners easements was an important point to include in the settlement, Chiarmonte said.

"That was a big thing because some people were worried about being able to refinance their property or sell their property," he said.

Every property owner in the mall must now sign off on the agreement. They have 10 days to sign. If they don't, the mall merchants attorney and the city attorney will try to convince them to sign. If they still don't sign, they will have to explain their reason and provide evidence to support their reason, before a judge in Buffalo.

The vote total from tonight is not available. Each mall property owner who is in good standing on mall association fees had a vote weight by the square footage of his or her property. The City didn't have a vote on property it owns through foreclosure, but it did have a vote based on ownership of City Hall. Chiarmonte said the motion to approve the settlement would have passed, just based on the property size of the owners who did support the settlement, even without the city's vote.

City Manager Jason Molino said he expects a final resolution to be in place by April, at which time the city can take over maintenance and began work to replace the roof, repair the skylines and clean up the entryways.

"The optic improvements, the visuals, that will make the space more welcoming and open to investment," Molino said.

The city owns, through tax lien foreclosure, a handful of properties in the Mall. Once the appearance of the mall improves, those properties will be easier to sell and they will go up for auction.

Chiarmonte thinks that in itself will be a big step forward to help bring more traffic into the mall as new businesses open in those locations.

Molino agrees.

"My estimation is that when some of the improvements begin, and just some of the aesthetic improvements begin, which is not a lot, you're going to start seeing interest in those properties," Molino said. "You will see people are going have a different perspective on investing in those properties. That will be just a positive turn, just that alone."

Authentically Local