Hello everyone,
Word of the pending sales of Concord Mall and a portion of DuPont’s Chestnut Run site is good news for New Castle County taxpayers.
The majority of the 4 percent tax does goes to the state, with the county getting the remainder.
The two deals were disclosed on Friday and reflect continuing investment in real estate assets in Delaware.
An earlier report from the commercial brokerage firm of Newmark, Knight Frank took note of recent investments by out of state entities totaling $136 million.
County taxpayers should benefit since a tiny portion of the sales price will be paid in a real estate transfer tax.
Don’t expect a lower property tax bill. The county is hemmed in by labor agreements that grant annual pay hikes for newer employees as well as pension and health care obligations. The state has similar health and pension obligations. In addition, a growing number of senior citizens receive a property tax reduction.
Still, sales of large commercial holdings should limit future property tax increases and the tendency to dip into reserves that are required to maintain bond ratings.
Meanwhile, a smaller DuPont no longer “land banks” space for future expansion and instead is content with a smaller footprint.
Shareholders are also demanding that companies strip to shed assets that do not contribute to the bottom line.
Concord Mall has been waiting for the other shoe to drop in the form of the Sears store and apparently decided the time was right to sell.
So far, the north Wilmington location has escaped the continuing wave of closings. It does not help that its second anchor, Macy’s is closing stores, including a long-running location in Salisbury, MD.
A bigger issue is Concord status as a smaller second-tier mall in a market that favors regional shopping hubs. On the plus side, Delaware still have no sales tax and Concord Pike remains a desired location.
If you have some time today click on this link to Dr. Martin Luther King’s “I Have a Dream” speech. – Doug Rainey, chief content officer.
