MASON CITY – Apparently citing a legality – and in doing so, protecting its turf – Kohl’s retail corporation is blocking the Marshalls store from opening in the Willow Creek Crossing shopping district in Mason City.
City staff confirmed what NIT had suspected for months but was unable to officially confirm until now. “We have been notified by the developer that Marshalls will not be locating in the Willow Creek Crossing Shopping Center,” a city official told NIT Monday. “We haven’t gotten any permit applications or plan review requests for a different location.”
The Marshall’s department store location – very near to the Kohl’s Department Store – has been under construction for months, and the city council had already granted a massive tax break of $480,000 to the retailer to help lure it here. Other, adjacent buildings that are being builty are nearly done, most notably a Joann Fabric store, the new home to the store currently located at the Southport Shopping Center. That store opens October 3.
However, work by Henkel Construction on the Marshalls store has ground to a halt. City councilman Alex Kuhn, who helped approve the huge tax break and also works for Henkel, did not respond to a question from NIT about the development. Many have wondered how the council can give massive tax breaks to retail developments to the detriment of established retail and not face consequences.
Later city staff expanded on the information they disclosed earlier.
“I wanted to send you the statement we received from the broker representing the owner of Willow Creek Crossing, Steve Scott of NAI Optimum,” a city staff member said:
“We have hit a roadblock in leasing to Marshall’s. Kohl’s has taken the position that Marshall’s would violate a rather vague provision in our OEA, which is the governing document for Willow Creek Crossing Shopping Center. The provision does not specifically prohibit Marshall’s or TJ Maxx by name. Marshall’s believes that they would not violate the provision, but has stated that they will require a waiver from Kohl’s before going forward, which Kohl’s has been unwilling to provide despite continued attempts on my part to obtain. This impasse is a nationwide dispute between the companies and we don’t think we can do anything to resolve it at this point. So as a practical matter we think the Marshall’s deal is not going to happen as we cannot take the risk of litigation with Kohl’s.”
[poll random]
If being around competition was completely bad for business, it makes you wonder how malls got to be so popular.
@Mediator – I believe most of the malls are struggling right now. I know ours is about bankrupt.
I’ll vote for Conservatives any day over a Liberal that continually tax us into proverty and pass more laws that take away our freedom.
Free Enterprise and Capitalism built this country and now we have seen how “Vote For Change” and “Spreading The Wealth” has destroyed this countries economy.
The last 6 years we have watched the Democrats borrow 7 trillion dollars and spread it up to their wall street buddies.
Yes folks, the Democrats have stuck it to the middle class big…
The idea of spreading the wealth means that those multi-millionaires and billionaires who are accumulating all the wealth in this country are making that off the backs of the working and middle classes. They pay no taxes, they have no morals and they lack compassion. They own this country and every person in it. Democracy and capitalism disappeared during the Reagan years and aren’t coming back. Labor needs to stay strong and fight for the common person. Happy Labor Day. Take back our country.
@bodacious-this from a union guy who demands his even though other people end up paying for it. Unions are the biggest blood suckers in the country. Go blow your horn and wake up some hard working people. Or better than that block off our intersections for a hour and inconvenience the whole town.
Oh and Bookie, City Council, the Court House thugs, and elite that run this town making all the money may call themselves Republicans and may be registered as Republicans,
BUT they are lying scoundrels that are nothing more than Liberal Democrats/Socialist/Communist/Progressives that are impersonating Republicans!
They are experts at playing the corporate welfare game.
RIHNO–Republican In Name Only
You sound like a Republican excuse maker when you call you own kind RINOS. Distance yourself from them and you can rename them if you like, but a rose is still a rose.
Sales tax or property tax is all the same. Tax Increment Financing or TIF is just that, tax money that is giving to a business to be used to go into business that then competes with an existing business.
Only an idiot would give his tax money to someone else to go into business to compete against himself.
But that is exactly what the elected socialist/communist/liberals force you to do with your own money.
We must stop electing Democrat/Liberals/Socialist/Communists!!!!
So he owns a house on Clear Lake. The question is, what is his role in the Indianhead development? Who are the other principles?
Matt can you find out who Peter Frampton is?
Somebody posted he is the front man for the Kohls/Indianhead Development.
I would sure like to know who all the owners are that own Wal-Mart/PetCo/Kohls/BestBuy, ect. development.
There is an attorney in Des Moines with the name of Peter Frampton. Wonder if it’s the same Peter Frampton. Something tells me that Indianhead Development Corp stock is owned mostly by MacNider and his buddies.
GEORGE Frampton! Go to http://www.co.cerr-gordo.ia.us and search the property records.
TIF, tax breaks, and Public/Private tax subsidized projects are all Socialism/Communism programs promoted by the liberals/progressives.
Then are NOT Capitalism and Free Enterprise in any way, shape, or form.
These Government giveaway programs are all about “spreading the wealth” UP!
We need to return to Free Enterprise and Capitalism. It is what make this country what it is.
The last 25 years all the liberal give a way programs have done nothing but hurt this country.
Expanded tax base my fanny.
When you give away 450,000 dollars to “increase” your tax base, by the time you recoup your “tax money” invested in expanding the tax base the buildings are run down, new retail development areas pop up with newer architecture and you end up with yet another blighted area.
Every 20 to 30 years tenants move on to newer stores and the shoppers follow.
TIF is a shell game for the liberals that promote “public-private ventures.
Get a clue!
By the time these freeloaders come on the tax roll fully, they already have plans to move or make threats to local gov for more special treatment. Sad thing is, this is how business is getting done all over America. Capitalism at its finest: Just corrupt the politicians and the sheeple will follow along and let it happen.
@forjvs-that is what I have been saying for a long, long time. The elite just keep ripping the rest of us off, but the lazy voters will not get off their butts and go vote them out of office.
Mason city needs to use a sales tax tif instead. A business gets to keep a portion of the sales tax they generate. It works well to help revitalize older buildings and helps prevent the cycle of build and neglect these property tax based deals trigger. It also puts it on the business to market themselves aggressively to increase sales which increases their rebate. That’s a plus for the consumer too. The city still does a development agreement and can cap the rebate.
Here is the real scoop!
MacNider and the Building Contractor (I am guessing Henkle Construction) cleaned up. The big money is made doing the deal.
Kohl’s and Marshall’s are only pawns to filter tax money to the liberal cronies that run city hall and the TIF and Tax Break monies.
The Democrats just love to “spread the wealth” UP! Screw the middle class.
Unfortunately MacNider sold the land 10 years ago. Try again.
Sold it to himself and probably partners. It is called “Indianhead Develop Corp”.
Indianhead Farms is the name MacNider used to call his farming investments which MacNider farmland that was rezoned and now called the Indianhead Development. Wal-Mart was the first parcel developed.
Maybe they sold their land but usually the developer (Indianhead Develop Corp. ie. MacNider&parters) build and lease the buildings out.
It’s owned by George Frampton, per the secretary of state’s records and the public agreement between the owner and kohls.
Now find out who George Frampton is? I am betting he is a front man for the local mob. Perhaps an attorney?
Check that out!
Interesting. Does our city councilman who works for Henkel have a role in this?
He wasn’t on the Council in 2004, I’m not sure he was out of high school then so I doubt he had anything to do with it. Read the agreement between kohls and the developer.. It’s a public document you can download from the county recorder’s web page. It spells out who owns the development. Redincam, an LLC owned by Charlie MacNider owned the land at the time the agreement was executed, but sold it to the developer before development occurred. Kohl’s owns the land their store is on.
@Anonymous-then why does the report say that Kohl’s is exercising a option in a clause in their LEASE??? If they own the land they why do they have a lease????
Perhaps there is an error in the story? Go to the county’s web page. Click search documents. Search for Kohls. Halfway down the page you will see three documents. The deed transferring title of the land from a MacNider she’ll corporation to Kohls, an agreement between Kohls, the developer and MacNider and later amendment to that agreement. You cal also do a property search for Kohls.
Also, the developer asked the Council for incentives back before kohls built and they (Jeff! Don, Max) wouldn’t even talk to them because they refused to use tif to support retail. That was also back when the developer had Lowes committed to Mason City if they could build on the front part of the fairgrounds. The fair board wanted $15 million for the land. They really didn’t want to sell because they would lose PGI. What a stellar decision that was.
Liberal cronies….hardly my friend. Its the Republican power brokers lead by Bookie and the Court House thugs that run this town and make all the money. They are experts at playing the coporate welfare game.
@Anonymous-Last I heard Kuhn was a liberal Democrat.
It could, given recent history, end up as a Mercy center of some sort.
@Mediator-Now that would not surprise me at all.
This is disappointing. What’s wrong with some friendly competition. I like Kohl’s but I also like Marshalls. And I’m sure people would shop at both. Not a Younkers fan at all. They offer coupons but you can’t use them on hardly any items in the store.
speechless??
Idiotic for the MC Council to promise tax breaks to a competing clothing store. Shows the piss/poor absent leadership this area is plagued with. Scrap the damn plans for Marshall’s and court WHOLE FOODS MARKET. That’s what this town needs. Damn fools…all of them.
Not too far off on this comment. The city shoots itself in the foot constantly, and if I didn’t live here, it would be comical. It’s kind of like the three stooges of city government. Moe = Tornquist (the serious, all business stooge) Larrey = Hickey (soft-spoken, self-indulging dolt) and Curley = Solberg (clueless moron whom elicits belly-laughs every time she speaks). You can switch out the others as you wish into this analogy.
I always refer to the county supervisors being the 3 stooges.
The only whole foods market in the state is in West Des Moines.
The demographics of Mason City–small and shrinking population with mediocre income levels–don’t fit what whole foods is looking for at all.
If you want shopping opportunities head north or south on I-35–and that’s not changing.
The City’s job isn’t to pick which business choose to locate in mason city–supply and demand determines that. The city is charged with expanding the tax base. which this project has done–even if marshalls never opens for business a building has been constructed that will pay property taxes.
@jvs-It was a waste of time and resources. No one wants the building and if Kohl’s will not let Marshall’s in you can just bet they won’t let in another competitor. So it becomes another empty, half built business that is not paying taxes. Another bad decision on the city’s part.
I disagree, the propertys taxable valuation has already been increased dramatically. I’d guess whoever owns it will likely ultimately finish it and look for a tenant. even if it sits empty its taxable valuation will be much higher than it was as bare ground and will provide a move in ready space for a potential new business. Its a property tax windfall for the taxpayers of mason city. I’m a property tax payer-It hasn’t wasted my time or resources.
Please quantify the following: “significantly” as you used it above; the reduction in the value of adjacent properties due to the nearby abandoned store front; and the reduction in value to older properties in town due to an over abundance of commercial property. Once you put all these numbers together, tell us again about what a good deal this empty building shell is for the taxpayers of Mason City.
anonymous–I can’t quantify, as I didn’t use the word “significantly”…..I think you are really grasping at straws with your comment–just looking for thing to be mad about. That brand new store front will ultimatley find a tenant. It will not reduce the value of neighboring businesses.
@jvs-yes it has affected your resources. If the building falls down or the owner declares bankruptsy and the property reverts to the city you will have lost all of the tax revenue not only from the building but from the lot as well. They keep giving away T.I.F. and everytime they do there is another retail business that is tax free for a period of time. Who do you think picks up the slack? Think about it.
lvs-do you understand how TIF works? A business is rebated a portion of the NEW tax that is created by the project. It does not affect my taxees or your in anyway–other than at the end of the rebate period 100% of the new tax is retained by the city and, in theory, reduces the tax burden for the rest of us.
Not sure what you mean by the property reverting to the city. That wouldn’t happen under any scenario.
@jvs-I could revert to the city if the taxes are not paid, which could easily happen if the builder goes broke or files bankruptsy.
yea your right thats exactly how it works…..
Sorry, I should have asked you to quantify “dramatically” Can you do that?????
well sure…..it was previously bare ground-valued very low. now it has a nearly complete, very large, building on it….voila-dramatically increased property tax valuation. And no, you can’t convince me that any other property-anywhere else in town- has had a decreased taxable valuation because of this project.
@jvs-I would call it a unfinished property with no value at all. It is a rough shell with most of the work left to do.
If it ends up being left as-is, and ultimately torn down or if it “reverts back” to the city as you suggest-I promise I will be back on this site to apoligise to you and let you say “I told you so”. As long as when the building is finished; a tenant is found; and its value is contributing to the tax burden of MC-you promise to do the same.
Then why did the NI Corridor help recruit Marshalls to come to MC?
I highly doubt that Marshalls was planning on coming to mason city because of anything the NI Corridor did–I think your giving them(NI Corridor) much more credit than deserved.
I was told the Corridor recruited them while at some business convention in Florida. The Corridor staff was bragging about it. It seemed like a bad decision to come here anyway. The retail market is saturated.
I’m sure they(NI Coridor) were taking as much credit as possible–they have to to justify their existence. But do you really think a company the size of Marshalls is going to open a store in MC based upon the recommendation of the local edc or city officials? I am sure Marshalls researched the market thouroghly and independantly.
This just sucks… This will just continue to drive people to go out of town to shop at Marshalls, T.J. Maxx, Home Goods, World Market, Gordmans, Tuesday Morning, Burlington Coat Factory etc.
I am very disappointed in Kohl’s decision. I shop there a lot but will just do more shopping at Younker’s.
Since the decision with Hobby Lobby, I choose not to shop there. Then, with Target being the largest donor to that idiot Michelle Bachman, I stopped going there.
Not enough choices…
NIT does a disservice by deleting the original comment and leaving the subsequent replies. I read the original comment, and yes it was deeply personal, but she obviously was able to handle a reply. NIT becomes so watered down and sanitized that the reader is robbed of the true potential for knowledge and understanding. Yes Life hurts, and comments hurt, but in the end there is the potential for growth and learning, but NOT if deletions cancel our ability to understand the dialogue.
The comment you are referring to was reported twice as offensive by readers, and our software removed it from the site automatically. I am electing to leave the comment down, and probably will remove the replies as well.
Thank you Matt. I appreciate your quick response.
I have nothing to hide– but bringing up a situation from 33 years ago when u know nothing about the true story is mean and beyond the pale and had absolutely nothing to do with Kohl’s or Marshall’s. The fear, brutality and torture that was perpetrated on me 33 years ago — really?????
Thanks again my friend…
This tragedy and subsequent brutality and torture happened to me 33 years ago, Yes, I am a senior citizen– I am now 62. The scars are still with me physically and the PTSD that I suffered has been tempered. But, as I said, with much prayer, family support, counseling and just plain hutzpah== I am doing great.. Have been for all these years. I come from good stock..
The reply however had nothing to do with Kohl’s or Marshall’s…
Shouldn’t they have had all the fine print straightened out and agreed upon before construction?
Wouldn’t you think so?
Shame on Kohls. Double shame on Marshalls. The devil is in the details.
To hell with Kohls and Mason City! Why don’t Marshals move to Manly or Northwood? You have to be crazy to start any business in MC anyway!