ABCD president blasts mall owners over building’s condition

McKnight critical of building’s ongoing deterioration

Altoona Blair County Development Corp. President/CEO Steve McKnight addressed the Logan Township supervisors with concerns about the Logan Valley Mall's conditions during their meeting Thursday.

For decades, the mall has served as an important commercial center, employment base and community asset for Logan Township and the region, McKnight said, adding its visible disrepair, loss of tenants and uncertain future now threaten property values, local employment, tax revenues and the broader commercial viability of the area.

"We all know that retail establishments, even in the best of times, have struggled to adapt to shifting consumer tastes driven by competition between products and brands," McKnight said, adding malls have especially suffered in the face of changing retail patterns and online shopping.

"We can all see the trajectory of our mall; it has not been good," McKnight said.

Along with issues locally, a quick Google search will find similar experiences across the country with other Namdar Realty-owned malls, like the Nittany Mall in College Township, McKnight said.

Given concerns associated with Namdar's management history, ABCD believes the situation requires sustained attention and a proactive response from the township, McKnight said.

"We encourage Logan Township to continue its effort to communicate with the current ownership group and consider appropriate enforcement tools when applicable to ensure obligations are met to prevent further deterioration," McKnight said.

While the deterioration, loss of jobs and business is a shame, Patterson said the township is "pretty much handcuffed" and can't do anything legally, since the township doesn't have an international property maintenance code to deal with the mall's property issues.

Most recently, a transformer within the mall blew out at the end of June, causing several businesses to temporarily close, due to the lack of power, which was restored at the end of July.

Dan Stants, the township's solicitor, said the township doesn't have the legal authority to do anything about the mall's property issues.

Those issues would have to become a public nuisance, meaning the building would have to deteriorate to the point of pieces of roofing falling off and potentially hitting someone before the township could do something, Stants said.

Patterson asked Stants whether roof leaks could be considered a nuisance. Stants said it could, depending on how bad the conditions get, but it would have to be a public nuisance and not a purely private nuisance between business tenants and Namdar.

Patterson said the supervisors plan to draft a letter to the state Department of Labor and Industry to make officials aware of the complaints -- if they aren't already.

According to McKnight, there is local interest in potentially purchasing the mall. But the current ownership isn't willing to yield to a price point that's acceptable and meets market conditions, he said.

Patterson said Namdar has, for years, applied to the Blair County courts for a tax reduction. The courts allow it because of the mall's deterioration, he said.

"It's not worth as much as it used to be, and it'll continue to (decline in value)," Patterson said.

Township Manager Tim Brown said the mall is currently assessed at about $13.8 million, but Namdar claims it's worth over $30 million.

"If they go in this year to reduce their assessment, I think we (should) push back hard on that because we have their calculation of how they're getting the $30 million, and that's what they're saying it's worth," Brown said.

"You can't have a property and say it's worth $30 million and then go to court and say it's worth $13.8 (million) because if it were $13.8, I believe Steve would have it sold within a couple of months."

In addition to drafting a letter to the Department of Labor and Industry, Patterson said he will contact David Sanko, executive director of the Pennsylvania State Association of Township Supervisors, to see whether his organization has a solution.

State Rep. Andrea Verobish, R-Blair, who was present during the meeting, said she thinks PSATS would be a viable resource for the township.

"Unfortunately, we are not the only ones to go through this type of situation, so I think we can learn from some of our neighbors," Verobish said, adding she is committed to connecting with the local government commission to see whether they have any ideas or solutions.

"I'm here to help hopefully make some connections because (the Logan Valley Mall) is a huge asset for our community," Verobish said. "It can really be something, and we need to have some action for sure."

Mirror Staff Writer Matt Churella is at 814-946-7520.