NewMark Merrill poised to take on ailing Twin Peaks Mall in Longmont

LONGMONT – With shopping center developer and manager NewMark Merrill Cos. under contract to buy Twin Peaks Mall, potential public redevelopment money could be discussed in the future, according to the city’s economic development director.

“The fact that an urban renewal district was put in place there several years ago puts the notion of a public project investment on the table for negotiation,” Brad Power, Longmont’s economic development director.

Longmont mayor Bryan Baum said Woodland, Calif.-based NewMark Merrill, which has an office in Fort Collins, has made an all-cash offer for the mall, which is owned by Panattoni Development Co. based in Sacramento, Calif. He declined to give details about the offer amount.

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The mall is in foreclosure proceedings, with $26.5 million owed to the Bank of America, according to the Boulder County Public Trustee’s office.

In 2007, Panattoni put together an investment group to purchase the 550,000-square-foot mall for $33.6 million .Officials from NewMark Merrill and Panattoni did not return calls for comment Thursday morning. A Denver lawyer representing Bank of America in the foreclosure proceeding had no comment when asked about the potential sale.

“They (NewMark Merrill) feel confident that they’re getting it at a price where they can afford to redevelop it,” Baum said. “We’re thrilled that we have a developer who has confidence in our ability to deliver.”

NewMark Merrill was hired by Panattoni Development Co. in July 2010 to manage both Twin Peaks Mall and Harvest Junction, with 335,375 square feet of commercial space, in southeast Longmont.

The company also owns and/or manages several other shopping centers in Colorado, California and Illinois, including regional centers like Waneka Marketplace with 93,699 square feet of space in Lafayette, Broomfield Plaza with 105,064 square feet of space, and Arvada Marketplace, 164,611 square feet.

While nothing specific has been discussed in terms of a public-private partnership, yet, infrastructure like roads can be paid for with tax-increment financing in an urban renewal district, Power has said. Other business tax incentives also may be available, Baum said Thursday.

 “Nothing is on or off the table yet, because we haven’t had a chance to discuss what they have in mind,” Power said. “We need to see an actual plan.”

A new movie theater, a natural foods grocery store and other potential anchors have been discussed as businesses that could help revitalize the site, Power said. Existing tenants, including an existing movie theater, continue to operate at the mall.

Previous talks to have the city partner with Panattoni to redevelop the mall in 2008 broke down because city council members “would not vote on it,” at that time, Baum said.

“What NewMark Merrill is interested in is the political environment of Longmont; whether they are going to be filibustered like Panattoni was,” Baum said. “The former council was costing Panattoni a fortune and basically put them into the situation that we’re in now.”

In general, cities can use tax-increment financing and other business friendly measures to help develop or redevelop business areas. How such financing works: a public entity can issue bonds that get paid back over time from the taxes collected from the planned increase in value to a property that is created by making the improvements. Infrastructure improvements at Flatiron Crossing in Broomfield were paid for through tax-increment financing, for example.