City Helps Southdale Center Get Massive Makeover | News
Southdale Center in Edina is known as the oldest enclosed shopping center in America. The city council thinks its residents would be better served if it was updated.
The city council voted 4 to 1 to approve a five million dollar loan for the owner of the mall, Simon Property Group. The billion dollar company would first have to invest 14 million dollars of its own money to receive the interest-free loan.
The funding would be given through TIF or tax increment financing. The tax break plan has been used to spur development in the past and does not change property taxes. Instead it borrows against the future increase in property taxes that are expected to come from the development.
Mayor Jim Hovland told us this is savvy spending and will help lure shoppers back to Edina that may have been going to other nearby malls over the recent years. City council member Joni Bennett was the only person to vote against the loan, she says this is not a good use of public funding.
Changes have already started at Southdale and the entire renovation project is expected to be done in November 2012.