A bright future for the mall?

Pending arrival of Resorts World a cause for optimism

By CLOEY CALLAHAN
Posted 3/3/21

Resorts World Hudson Valley is coming to the Newburgh Mall in the former Bon Ton, currently Jennifer Furniture space, with plans to attract other tenants in hopes of filling the 17 empty storefronts …

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A bright future for the mall?

Pending arrival of Resorts World a cause for optimism

Posted

Resorts World Hudson Valley is coming to the Newburgh Mall in the former Bon Ton, currently Jennifer Furniture space, with plans to attract other tenants in hopes of filling the 17 empty storefronts that the mall currently has. A community benefit agreement estimates $244 million over the lease term to benefit the community.

The total project cost is $32 million, which will utilize no tax abatements or other incentives, with a 65 year lease for 90,000-square-feet. In fact, $65 million in annual state education funding is estimated.

President Robert DeSalvio and Vice President of Government Affairs and Public Relations Meghan Taylor, from parent company Genting Americas, presented to the Town of Newburgh Board on Monday, February 22 with preliminary plans for the space and the benefit it will bring to the community.

The enclosed mall, located near the intersection of Interstate 84 and the New York State Thruway, opened in 1980. Only one of its original anchor stores - Sears - remains. In its heyday, it also boasted retail giants like Caldor, Old Navy and Radio Shack.
Taylor said that 200 construction jobs will be created with an additional 200 to 225 full-time jobs at an average salary of $74,000 created.

“We want to make sure our work done at the Newburgh Mall is done with union labor and local contractors and vendors,” said Taylor. “Preference would be given to local residents in Newburgh and surrounding areas.”

During the presentation, they displayed preliminary renders of the building and blueprints of the floor plan. One strategic decision they made to benefit the community was to not offer food inside the establishment. Contrary to the other locations, it will only have their bar-360. Taylor said this will encourage individuals to grab a bite at other locations inside the mall, promoting more business across the entire building and hopefully attracting new tenants to fill some of the 17 vacancies. Additionally, there will be a Genting rewards program that encourages collaboration between Resorts World and other store owners in the mall.

“The existing conditions are actually quite good,” said Taylor. “But we do think we can enhance this property and hopefully attract new, additional tenants to the mall as a result of what we are proposing to do.”

Newburgh Mall management did not return calls for comment regarding other prospective tenants.

With a host community benefit agreement, the community would see around $3 million annually in benefits, totaling to $244 million over the entire lease term. With this benefit, the Town of Newburgh would receive $1 million to be used for “any municipal purpose.” The Town of Newburgh Public Safety Fund would receive $500,000 to “enhance public safety initiatives that are vital to the town’s stated goals to protect and assist its citizens.” Finally, $1,500,000 would go toward “vital community projects throughout Orange County, including the Town of Newburgh. All three of these sectors would see a five percent increase every 10 years.

The agreement would also ensure that both construction and permanent jobs have preference given to local residents and contractors. The permanent jobs would be in collaboration with local colleges, allowing training for demographic groups with high unemployment.

DeSalvio said the host community benefit agreement is the best they can offer, making it non-negotiable at this time.

On top of the host community benefit agreement, Resorts World also partners with local charities for further investment – leading to $260,000 annually, or $16.9 million over the lease term, to further benefit the community. The investment is again split up into three sections: $50,000 to its corporate philanthropic program, which “would invest in the economic and social progress of Orange County,” $10,000 to the “Everi Cares Giving Module,” which patrons would have the ability to donate spare change from vouchers to local organizations, and $200,000 for “an aggressive marketing campaign” that would drive traffic to the establishment.

During the Town Board meeting, members of the board asked how much would directly go toward schools, called for a traffic review, and asked if residents should be concerned about the character of the mall changing with an establishment like Resorts World.

“We take responsible gaming really seriously,” said Taylor. “We recognize while gaming is really an enjoyable, leisure, entertaining activity for most – there is a small percentage of the population that cannot game responsibly. Responsible gaming is part of the culture at Resorts World.”

Next steps for the Town Board include changing the definition in the zoning code from large shopping center to allow the operation of this type of facility, authorizing the preparation of a local law, completing a traffic analysis and environmental assessment, and securing consultant fees.

Other community representatives have already shown support in the project.

“When Resorts World first approached me nearly two years ago seeking support for a proposal to bring a gaming center to Orange County, I made my priorities clear to them: jobs, revitalizing a blight, and local community benefits,” said Senator James Skoufis in a press release. “This project does all three.”

“The proposed plans for Resorts World Hudson Valley delivers on the commitment Genting made to Orange County,” said Orange County Executive Steven Neuhaus in a press release. “It is an investment in jobs, in growth and in the future of Orange County, and it will have an immediate—and positive—impact at a time when we need it the most.”

After the time of final approval, Genting said there will be six to 12 months of construction.