WESTMINSTER — Redevelopment of the tired Westminster Mall began last month, with the city buying two vacant buildings, including Macy’s, city officials said.
The Westminster Economic Development Authority also purchased the abandoned Trail Dust Steak House, which will be demolished next week, said City Manager Brent McFall.
The purchases are the first steps toward turning the 108-acre site into a development with shopping, entertainment, residential living and culture, McFall said.
“This is a great piece of real estate,” McFall said. “We’re hoping to turn this into something really special.”
Westminster is negotiating with Steiner + Associates, a development firm from Columbus, Ohio, to reshape the mall. Its location between Denver and Boulder, just off of U.S. 36 and West 88th Avenue, make it an ideal spot to attract shoppers from across the region, McFall said.
But first officials and developers have to deal with an area that was declared blighted last year by the City Council.
Since 1999, the mall’s sales-tax revenue has plummeted 70 percent as new competitors — especially Broomfield’s FlatIron Crossing — drew people from north Denver and elsewhere.
When Macy’s closed in 2009, it left the mall only about 50 percent occupied.
Last year, the city said it was collecting less than $4 million in sales taxes from the mall annually.
At one time, the mall boasted six full-size anchor stores and several small shops, totaling more than 1 million square feet of retail space.
The city hopes to reclaim that glory with its “Westminster Center urban reinvestment project.”
“With these steps, and the others we have taken, the message to the community is clear: We have a vision for this property and we’re moving ahead to make it a reality,” said Westminster Mayor Nancy McNally.
Macy’s ownership approached the city about buying the property, which came in at $700,000 plus a share of the closing costs — about $7,000.
The building, on the west side of the mall, is 157,000 square feet and includes 8.42 acres of land.
There are no immediate plans for the Macy’s site, McFall said.
The Trail Dust Steak House, vacant since 2007, was purchased by the city for $727,103, according to officials. The building has been used in the past several weeks for training exercises by the Westminster Police and Fire departments, McFall said.
Those operations have led to reports of smoke being seen rising from the building, he said.
Monte Whaley: 720-929-0907 or mwhaley@denverpost.com
