An under-performing shopping mall in a decent location—in this case, North DeKalb Mall near Decatur—seems like it would be an easy fix, right? Just bring in a popular retailer, and the mall’s foot traffic and car traffic will rise instantly.
But it’s not that easy. Just ask Hartman, Simons, Spielman & Wood partner Theodore J. “Ted” Sandler, who’s advising his client, Hendon Properties, on how to remake North DeKalb Mall. Hendon has been negotiating with Costco Wholesale Corp. for a considerable period of time about opening a store at North DeKalb Mall. A thicket of legal and business issues have prevented the two sides so far from inking a deal, although Hendon is still trying.
One matter deals with the mall’s unusual zoning situation. The vast majority of the property, which is located in unincorporated DeKalb County, is zoned for commercial development, Sandler said. But a section is zoned neighborhood-commercial. Costco wants to be able to sell gasoline at North DeKalb Mall, and it wants at least part of its building to be located in the area zoned neighborhood-commercial. Gasoline sales are forbidden on property zoned neighborhood-commercial.
“We’re just trying to correct that zoning category,” Sandler said. “That’s the main motivating factor at this time.”
Another issue deals with how extensively Hendon will re-design the mall. One option would entail “de-malling the mall and looking at a complete reconsideration of how the property operates,” Sandler said.
The second option would come into play if Hendon is unable to reach an agreement with Macy’s Inc. about acquiring its building at the mall, where it still operates a store. If Macy’s won’t sell, Hendon will pursue a scaled-back redevelopment of North DeKalb Mall, Sandler said.
Sandler said he’s not aware of any nearby neighborhood association having hired legal counsel to negotiate with Hendon.
Other legal issues are less challenging, such as variance issues dealing with setback requirements within the mall’s property.
Also, some nearby wetlands are not an issue in Hendon’s current plans. An earlier version of the mall’s redevelopment called for a larger footprint which would have encroached on the wetlands. But since then, the plans have been scaled back, Sandler said.
Hendon CEO Charlie Hendon wants to be sensitive to the needs of the surrounding residential neighborhoods, Sandler said.
“Charlie is very understanding of the neighborhoods’ concerns,” Sandler said. “Whatever we do here, the neighborhood will have a voice in how this goes forward.”