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Medley Center Sold: The Deal and Local Comment
Medley Centre gets new owner
Sale to Syracuse-based developer boosts hopes for the troubled Irondequoit mall
Deborah Alexander
and Erica Bryant
Staff writers
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(April 11, 2007) ÷ Nearly two years after being sold, renamed and given a quick infusion of two national retailers, the former Irondequoit Mall ÷ now the Medley Centre ÷ has been sold again.
Developer Adam Bersin, the mall's owner since May 2005, said Tuesday he has sold the 900,000-square-foot shopping center to Scott R. Congel, a principal with The Pyramid Cos., a Syracuse-based mall development company.
Bersin and Congel were colleagues for more than 10 years when Bersin worked at Pyramid. They did not disclose the sale price, with Bersin saying only that the transaction was positive for both sides.
Bersin paid $5.4 million for the mall two years ago, a low price that reflected a lack of demand for what was seen as a severely ailing property. He brought in Steve & Barry's University Sportswear and helped persuade Target to build a free-standing store adjacent to the mall.
But the interior of Medley Centre has continued to languish. Bersin put in a popular MedleyKids play area, but more than half of all storefronts in the two-level mall are empty.
Much as he did two years ago, Bersin vowed that conditions will improve. "This transaction begins an exciting new period for Medley Centre, in which a highly successful mall development company not only demonstrates interest in Monroe County but also commits a very significant amount of dollars and talent to it."
Shoppers in the mall on Tuesday were hopeful.
"Maybe they're going to do something with it to attract more people," said Janice Ford, a Greece resident.
Bersin said he will remain actively involved at Medley Centre. Congel could not be reached for comment.
Congel gets not only the mall but also the financial incentives that were granted to Bersin in 2005, a package worth $980,000. The deal includes the space now occupied by the Bon-Ton department store, a mall anchor that is scheduled to close in May because of weak sales.
The sale also includes land surrounding the mall that Bersin purchased for more than $4.7 million in March 2006. That property will be developed as part of a coordinated project with Medley Centre, Bersin said, but he declined to be specific.
In Congel, the mall is getting a deep-pocketed member of the family that runs Pyramid, one of the leading mall developers in the Northeast with 16 shopping centers in New York and four in Massachusetts. His father, Robert J. Congel, founded the company in the early 1970s.
Bersin said that Scott Congel has secured a $135 million loan that can be used for improvements to the Irondequoit property.
Judy Seil, acting executive director of the County of Monroe Industrial Development Agency, which coordinated the incentives given to Bersin in 2005, said the package will be assumed by Congel, who will be under the same terms and conditions.
"We see this as very positive," Seil said.
She said Bersin has lived up to his end of the agreement. He was required to create 50 jobs directly or indirectly through tenants, and met that requirement with the openings of Steve & Barry's and Target.
Bersin also was required to invest $5 million in capital, which he accomplished with the construction of the Target store and the remodeling of former JC Penney space for Steve & Barry's. And a requirement that he lease 100,000 square feet of vacant space was achieved through Steve & Barry's, Seil said.
The sale is the latest development for the mall, which opened in 1990 with more than 100 stores but now only has about 40.
The mall has struggled with unfounded rumors of crime and a recession that affected retail everywhere. There was competition from other area malls, and occupancy rates declined. Almost 11 years after opening, Wilmorite Inc., the original developer of the mall, sold it after a company official said it was barely profitable.
Reaction to the latest sale was positive.
County Executive Maggie Brooks praised Bersin for improving conditions at the mall and said she is optimistic about Medley Centre's prospects.
"This news signifies great potential for further growth at Medley Centre and takes efforts to revitalize the mall to the next level," Brooks said. "Turning a mall around doesn't happen overnight. Adam Bersin helped instill confidence in the site's potential, and as a result of his vision and leadership, Medley Centre has made important progress."
James Frascati, co-owner of Irondequoit Travel at the mall, said he was excited by the news. "I hope that things move forward as expected."
Frascati said Pyramid has an excellent reputation and track record in promoting businesses in the retail industry. He said he has visited two Pyramid-managed properties, Carousel Center in Syracuse and Walden Galleria mall in Buffalo.
"Pyramid knows retail. The company will bring new ideas and changes."
He said the company will do everything it can to bring in new businesses and renovations, but it will take time. "Then it's up to the people to come back. I think they will."
Shoppers had their own suggestions for generating more traffic. Sarah Thomas, a senior at Aquinas Institute, said, "It would be nice if they could open more stores like Rainbow and DEB."
Eloy Thorn of Rochester said he remembers the mall's glory days.
"It used to be full," he said. "If more stores opened, people would come back. I wish they could make it how it was in 1998 and 1999."
The MedleyKids play area was a lively spot in the mall Tuesday. About 20 children were in the area, including Andrew Stiner's 4-year-old son, Devin.
"I came here for the playground, but I don't do much shopping here," said Stiner, who lives down the street from the mall. He said he hates going to Greece or Henrietta to shop, but the stores in Medley Centre don't meet his needs. "I used to shop here all the time," he said.
John Abbott, deputy superintendent of East Irondequoit schools, said the district hasn't seen the details of the sale yet, but will support efforts to improve the mall.
"Our feeling all along has been that whatever it takes to make the mall viable needs to happen," he said. "One thing we know is that Pyramid is a major player in retail. There's every reason to believe their involvement is a positive thing."
Irondequoit Supervisor Mary Ellen Heyman said she appreciates the efforts Bersin made to revitalize the property.
"I think he's worked very hard," she said. "Adam has been able to demonstrate that we can bring people there."
Heyman said she hopes the people who turned out for special events that Bersin hosted at the mall will become regular visitors under the new management.
"I love the Carousel mall in Syracuse," she said. "If they can bring the same type of capital and opportunity to Irondequoit, that would be excellent."
DALEXAND@DemocratandChronicle.com
EBRYANT@DemocratandChronicle.com
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Let's be honest here. Did anyone really think that Bersin could make a go of Medley Center? I sure didn't. And I don't have much hope for the new owners of the mall either. The reason this mall was doomed from the start is because it's accessible by bus from the city and the suburban folks were scared away because African-American young people were congregating in the mall. This is not a racist remark but true because I witnessed it several times. I was sitting on a bench waiting for my wife to shop when a group of elderly white women went walking by. At the same time some teenagers were coming the other way and one of these ladies remarked " grab on to your purses before they steal them." Now these kids were not threatening anyone, just walking in the mall. But some people freak out when they see a group of inner-city kids wearing large gold jewelry believing they are hoods. It's unfair to those kids, but I believe thats the reason the mall failed and will continue to fail.
The Voice of Reason
Posted: Wed Apr 11, 2007 6:35 am
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Just to get back to Medley -- the whole deal is exposed as a lie from the beginning and COMIDA continues to backtrack. Bersin got a 15 year PILOT because one of the claims was that he was going to create 1500-2000 jobs (even though they would be low-paying retail jobs, and COMIDA was created to encourage the development of better-paying jobs). And now COMIDA head Judy Seil claims he lived up to his agreement because he created 50 jobs? One of the provisions was that as long as the mall doesn't go to 85 percent occupancy or above, Bersin would never have to pay full property taxes (which Irondequoit residents will have to make up for for another 13 years.) Then Target came in, and COMIDA gave Target ANOTHER PILOT on top of the first one. Bersin, whose wife is Brazilian, brought in a Brazilian retailer so that he could write off their trips home as a business expense. He created "Medley Kids" as a playground for his own kids. (yes, yes, he's a smart businessman; he knows how to use IRS rules to his own personal advantage.) How many other retailers did he bring in, besides Steve & Barry's? And he kicked out the old retirees playing chess because "they intimidated shoppers and were noisy." a great story that was carried by the Associated Press and reported around the country. Great press for Medley Centre, right? As early as last summer, it was being reported in the Irondequoit Post (and Bersin was denying) that the mall was for sale. Bersin was a front for Pyramid all along. And check what Pyramid is doing in their home town of Syracuse; also just got HUGE help to develop their plans for the biggest mall east of the Mississippi. Can anyone say WELFARE FOR THE RICH? When will our Republican leaders stop giving tax breaks to business liars who bought them with campaign contributions, and finally give a tax break to regular residents?
smh91
Posted: Wed Apr 11, 2007 5:52 am
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Rochester66, I think the idea of High Falls being an entertainment destination is now dead. The owner/developer of the former Jillian's/Saddle Ridge site has made commitment(s) to making it into office space with housing nearby. Meanwhile, with coming increased density, the current restaurants and other commercial development will be better positioned for survival, and will most likely be interested in remaining there at High Falls.
I don't think a casino will come as long as Spitzer is governor or Duffy is mayor, given their respective backgrounds as attorney general and in law enforcement, respectively.
Maybe in another decade, like in 2017, a casino will come about, and come to the neighborhood of High Falls, taking up residence in the (by then) vacant Kodak Office Tower!
gone4good
Posted: Tue Apr 10, 2007 8:40 pm
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Gone4Good·.I am still a strong proponent of a Fast Ferry system for our region and a casino. As for the Casino·government would not have to spend a penny! The plan for Sibleyâs/Midtown Casino had the casino spending ¸ billion dollars·and the city getting several million/year in annual income. Probably a better location for a casino is High Falls. I still hope it happens. Casinos are just another form of entertainment. They exists in many of the great cities of the World. To become competitive and diverse·I think its essential that we get a first class casino complex in Rochester.
Desperate cities do need to take risks·become aggressive·.but they just need to be careful. An Italian Market at Midtown and Renaissance Square are examples of foolish attempts at Economic Development!
Rochester66
Posted: Tue Apr 10, 2007 8:16 pm
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Rochester66, I think you're finally coming around. Just keep in mind that those who want to build a casino or to buy a Fast Ferry are those who are also looking to exploit a desperate citizenry.
gone4good
Posted: Tue Apr 10, 2007 7:53 pm
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I don't know who you are blaming for this. The whole thing about the previous comments and Maggie Brooks are unfounded. As much as I hate to put myself out for a Republican, the person you should be blaming is Joe Morelle. His office is on the border of mall property. He should have been the first person to blame. I was reading past archived articles on the mall closing when it was Irondequoit Mall and not a peep from Joe. As a matter of fact, he was never even mentioned. How many jobs did that cost him? Care to guess? Somewhere in the hundreds. Not to mention the empty lots adjacent and across from Bishop Kearney High School. That whole office spare area should be developed or redeveloped into a draw for one of the tech savvy businesses Joe promised us he would attract during his last campaign.
Don't kill the carrier. Maggie Brooks despite waking up from a coma(or it could be election year), has come to realize that Rochester needs to look at existing buildings for the money draw. Unless you all forgotten, when the mall was built, revenues from the property were split between both the City of Rochester and Irondequoit. It was a nice place to shop. I would still go there because I don't know about you folks, but I don't want to drive down construction alley a.k.a. W Ridge Rd to get to Greece Ridge, nor do I want to drive 20 minutes to Victor for one store that is in the entire metro area.
Also, the last time I checked, I was never mugged nor harassed by anyone coming out of the mall in my entire life. Why would your shopping experience be any different if let's say Greece Ridge was on the border of the City. Oh wait, it is....It is just a misnomer for people to be racist.
If Irondequoit had real leadership, they could turn east ridge road into another Jefferson Rd. without all the traffic. Parking some long term tenants in the empty buildings that line the Ridge could create a draw for those businesses. When I worked in Henrietta, it was great if I had to pay a bill, go to the mall, or get a bite to eat in one of the dozens of restaurants. It was all in one area. Most of leadership lacks real quality. Most are cronies of Joe Morelle; absent of any individual thought, or more self absorbed like Joe Morelle that they only care about their job title and not how they perform in it.
Now if I were Maggie Brooks, I would put Morelle's back to the wall. He seems to have forgotten where the larger portion of the 132nd Assembly District is, (when he's not playing chairman again after saying he wasn't going to do it...run out of cronies Joe?) maybe she should remind him. Make him responsible for his own district. He is able to hold a mid-sized theater over her head, why can't she hold job/economic loss in his district over his head. Maybe then he will remember where he lives!
Joining the Tourism Committee doesn't opt you out of your overall responsibility and obligation to the people. You are still expected to create jobs and foster economic growth. Joe you are running out of things that other people accomplished for you to rubber stamp.
A reminder to you folks, hold these politicians responsible. Morelle's name comes up only when positive things happen and disappear when they go awry. Take a look at the Ferry archives from the beginning in the D&C. Sen. Robach was the ONLY person besides Johnson to still stand on the deck of that ship while it was sinking. You can say what you want about Robach, but I happen to think he is a stand up guy! He actually thinks about both sides of the political spectrum and the people. Oops that's kudos for two republicans, what am I turning into?
tonymorelle
Posted: Tue Apr 10, 2007 6:40 pm
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Pyramid Cos may sell Most Malls Outside Syracuse
April 3, 2007
http://www.9wsyr.com/news/local/story.aspx?content_id=0c5c9e8f-2516-43bf-94e5-f6804613a84f
The family that owns the controlling interest in The Pyramid Companies Monday afternoon announced that they have begun a review of strategic alternatives, including a potential sale of the companyâs portfolio of super-regional and regional shopping centers in New York and Massachusetts, with the exception of the Carousel Center and Destiny USA.
The independent trustees for the Congel family have retained Goldman, Sachs & Co. to assist in the review.
The company owns 20 malls throughout New York and Massachusetts.
SMPRCO
Posted: Tue Apr 10, 2007 5:31 pm
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There is a lesson to be learned from the Medley Centre government assistance package. I have no particular problem with government assistance towards projects that have strategic importance·.but there is a major industry out in the marketplace that feed off depressed cityâs desperate need to seek development. They will promise the world ·.if you give them series of tax breaks. But before our community goes forward on a development project·.make sure both parties take financial risks·government and the developer. The development must commit substantial up-front dollars in order to receive substantial government tax breaks/grants. This didnât happen with the Medley Center. The concern I have relates to the Midtown Plaza Complex. The city is desperate to see development and this may attract other predatory developers looking for an easy dollar rather than a long-term commitment.
Rochester66
Posted: Tue Apr 10, 2007 5:06 pm
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Now maybe Pyramid can bring the whole "Italian Market" thing to realization... just kidding... but I WOULD like to see some "outside the box" thinking here.
How about bringing in Outlet stores like those in Waterloo? I would think outlets would jump at the chance to locate in a first class building a little closer to civilization (nothing against Waterloo).
Some other (not so likely) ideas: Indoor Waterpark; Skatepark; Movie Theatre; Climbing Wall/High Ropes Course; Fitness Center; Etc...
J
Posted: Tue Apr 10, 2007 4:35 pm
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The idea that the mall is unsafe is a bunch of hooey. It's a common urban myth ... the darrrrkkkk and dangerous mall parking lot, where evvilllllll peopllllllle lurk. If you doubt it, ask yourself this: If it is true that "nobody" goes to this mall, then why would a criminal waste a minute there? Wouldn't they rather go where there are goodly numbers of people they can mess with?
Blueforce
Posted: Tue Apr 10, 2007 4:33 pm
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I guess it was worth repeating.
gone4good
Posted: Wed Apr 11, 2007 10:09 am
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this is the same story as yesterday
outofcontrol
Posted: Wed Apr 11, 2007 7:32 am
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It will fail for the same reason the others failed. Who comes to shop and who does not. Period.
SPEAK2ME
Posted: Wed Apr 11, 2007 4:37 am
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