Syracuse, N.Y. -- The Pyramid Cos. is suing the town of Guilderland to have the $282 million assessment on the Crossgates Mall near Albany cut nearly in half.
The Syracuse-based mall developer seeks in the court filing to have the assessment on the mall reduced to $143 million, according to the Albany Business Review. Pyramid pays $7.5 million a year in property taxes on the mall.
The lawsuit cites pressure from online retailers, sales declines and record bankruptcies and store closures, particularly for department stores and fashion retailers that were once the mall’s primary focus, the Business Review reported.
Pyramid also cited the financial impact of the coronavirus pandemic, even though the mall was not forced to temporarily shut down until after the March 1 deadline for the filing of the town’s tax assessments, the publication said.
Crossgates is one of 11 malls Pyramid operates in New York and three in Massachusetts. Among its New York malls is Destiny USA in Syracuse.
Destiny, the largest mall in New York and sixth largest in the nation, is facing many of the same challenges as Crossgates. Two big department store chains -- J.C. Penney and Lord & Taylor -- have filed for Chapter 11 bankruptcy protection and plan to close their stores in Destiny in the coming weeks.
Pyramid is not likely to challenge Destiny’s tax assessment, however. Under a unique 30-year deal with the city of Syracuse, the company pays property taxes only on the land under the mall, not on the building itself.
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Lord & Taylor at Destiny USA to close
J.C. Penney sets closing date for Destiny USA and Sangertown Square stores
Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: Email | Twitter | Facebook | 315-470-3148