Business torrents

St. Ann officials said Tuesday that they hope to meet soon with the new owner of Northwest Plaza to learn what it plans to do with the financially struggling mall.

The new owner, St. Ann Shopping Center LLC, submitted the only bid — $29.95 million — Tuesday to buy the mall out of foreclosure. The newly organized company owns the mall for the institutional investors who hold the $30 million loan obtained by the two California companies that bought the mall in 2006.

Despite the second change in ownership in three years and the continuing loss of tenants, Mayor Gary Guittar says he is hopeful that redevelopment of Northwest Plaza as an outdoor "lifestyle" shopping center remains possible.

St. Ann Shopping Center’s takeover ended the ownership of NW Plaza Owner LLC, set up by Somera Capital Management of Santa Barbara, Calif., and Zelman Development Co., of Los Angeles, to buy the mall in 2006.

For now, Northwest Plaza remains open under the management of General Growth Properties, said Tim Just, the mall’s manager. General Growth, a Chicago company that owns the St. Louis Galleria and has stakes in other malls nationwide, is operating under bankruptcy protection.

City Administrator Mall Conley said city officials hoped to learn soon if St. Ann Shopping Center plans to retain mall ownership or sell it to a developer. Tax-increment financing, in which some future tax revenue pays for current infrastructure costs, could be used to help redevelop Northwest Plaza, he noted.

Before the recession’s start, St. Ann granted TIF spending of up to $98 million to rebuild the mall and add office buildings. No TIF spending has taken place, and such an ambitious project is unlikely now, Conley said.

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