Condemnation idea debated to redevelop Crossroads Mall

BOULDER ? The continuing saga of Crossroads Mall could have become the nightmare before Christmas during the Dec. 12 study session of Boulder’s city council, but a clear head prevailed.

Phil Shull, chairman of the Boulder Urban Renewal Authority (BURA) board, quietly and succinctly laid out questions that would “materially alter” the course of Crossroads Mall redevelopment. The most critical issue on everyone’s mind was the question of condemning the property.

Condemnation allows local governments to take private property for public use without the consent of the owner for just compensation. Crossroads Mall would fall under public use because it is in the urban renewal district created in 1979. BURA would be the condemning authority if a legislative act by Boulder’s city council directed it to condemn a portion of the mall, according to Joe de Raismes, city attorney.

The city and BURA are considering condemning the southern end of the mall on Arapahoe Avenue between 28th and 30th streets, about 35 acres of the mall’s 65 acres owned by the Charlotte Ball Seymour Children’s Trust, the Seymour Ball Trust for Alexander Williamson Seymour and the Seymour Ball Trust for Lee Seymour.

Macerich Co., the owner of most of the land at the northern end of Crossroads, and lessors of the south end owned by the Ball trusts, have tried to purchase the southern portion of the property so that a now stalled mixed-use redevelopment could get back on track. Options for mixed-use redevelopment include new retail, housing, commercial offices and possibly a conference center and hotel.

The land purchase is stymied, however, because Macerich and the trusts cannot agree on a price. Macerich would not disclose the amount it has offered the trusts, and de Raismes says he cannot discuss the offer because it would violate confidentiality.

De Raismes explained that condemnation might be necessary to enable mixed-use redevelopment at Crossroads because purchasing the land seems impossible and the only other option, allocating leases, wouldn’t work.

To allocate leases, the major lease that governs the legal use of the shopping center’s retail would be split up into subleases so the space could be used for purposes other than retail. De Raismes said there is no way to impel the landowners to sublease.

The best way to proceed with a condemnation would be for the seller and buyer to agree to have the court set a purchase price (voluntary condemnation), according to de Raismes.

In the Dec. 12 meeting, both BURA board members and city council members said they would support condemnation of Crossroads; however, they had reservations.

If the mall property is condemned, it was suggested it should be one condemnation rather than small pieces one at a time. Doing it piecemeal would be more expensive, although de Raismes said he wouldn’t estimate on condemnation costs unless there is an agreement between BURA and Macerich to proceed. He said previous media reports of $100 million were inaccurate.

“It wouldn’t be anywhere near that, but I’m not giving any estimates now,” he said.

Either the entire mall could be condemned or just the south end owned by the Ball trusts. De Raismes said all he has heard is that just the south end would be condemned.

Don Mock, deputy mayor of Boulder, supported condemning the entire mall and letting one developer oversee its redevelopment so market forces would be in control. A smart developer would know the best way to incorporate all the mixed uses and make money from the resulting development, he said.

Francoise Poinsatte, Boulder councilwoman, was concerned that a condemnation would put the city in the position of being a convening authority as well as a player in the process. Rick Epstein, BURA commissioner concurred. Condemnation moves the city into a direct and aggressive partnership role and a facilitator role, he said.

Shull cautioned that if a condemnation moves forward, the redevelopment goals of BURA and the city of Boulder must be met. Councilman Tom Eldridge went a step farther and said if condemnation took place, he would want the city to have an “equity position” in the outcome.

Macerich’s Senior Vice President Michael Busenhart said his primary concern was to keep Crossroads as a retail project. Macerich wants to add a major retailer either right next to what is now the J.C. Penney’s store or abutting the second level portion of the mall, but not at the south end of the mall.

If the south end was condemned, Busenhart said it would be used for residential housing, a civic use like a convention center and hotel, a transportation hub or area for parking on 30th Street.

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