Councilmen: New deal on decaying mall coming soon

A long-awaited, updated agreement between the City of Baytown and Fidelis Realty Partners for the San Jacinto marketplace is expected in August, some council members say. 

There has been anticipation on the part of Baytown residents, and city council, on the latest developments with the old San Jacinto Mall ever since Fidelis representatives visited council in October. Council had many questions and statements about the presentation made by Fidelis, which some felt had less retail space than expected with the addition of apartments, hotels and office buildings to the property. There were also concerns from council about businesses migrating to the new mall and leaving empty buildings behind. They also sought reassurance from Fidelis about the quality of businesses at the new marketplace and not having dollar stores, fast food restaurants or second-hand stores.

Councilman Chris Presley said a draft agreement is expected to be on the agenda for a council meeting in August. 

“It will be up for approval,” Presley said. “It is my understanding that there has been a meeting of the minds between Fidelis and staff. But ultimately, council has the responsibility of approving the agreement.”

Because of an earlier missed deadline, the city has asked Fidelis to return $3.25 million in incentives, a provision known as a clawback. So far, the money has yet to be returned. 

“It is my understanding the clawback and every other piece of the agreement will be addressed at the same meeting and by virtue of a new agreement,” Presley said. “I was in the camp that it should have been paid back before now. But there were different opinions about that on council.”

Councilman Charles Johnson was also hopeful that a new agreement would come next month. 

“It is moving along and there is an agreement coming soon,” Johnson said. “It may not seem like it, but there is a lot going on behind the scenes. Sooner rather than later, some information will be given out on progress being made.”

In 2015, Fidelis and the city formed an agreement offering certain cash and future tax rebate incentives to negotiate with the then-mall anchor stores - Sears, JCPenney, and Macy’s. This was to deliver a new shopping center for Baytown. In the seven years since then, many things have occurred, such as COVID-19 and bankruptcies that have delayed the development of the new mall. There has also been a shift to online shopping instead of traditional indoor mall shopping. In addition, Fidelis did not acquire the entire mall property, including the anchor tenants, until August 2021. 

“Given this new retail climate and Baytown residents’ expectation of a new, high-quality shop-ping destination, adjustments to the current agreement with Fidelis are necessary,” Fidelis stated in a December. “We believe Fidelis can go back to the drawing board and design a project that considers your desire for a venue of the highest standards possible.”

Fidelis officials also state they want to address the gaps made at the October council presentation. 

“In the new agreement, the city will seek to address the retail portion of the development, and will focus on pedestrian mobility, appropriate incentives, and elevated signage, landscaping, and other standards,” Fidelis officials stated. “Additionally, it’s important to stress that the goal of a new agreement will in no way be to incentivize the relocation of businesses already in Baytown to this new venue. As you know, some migration of retail from one space to anoth-er is always possible and is considered normal as part of the business cycle. But the city will work with Fidelis to incentivize performance: securing new businesses, not relocating existing businesses.  

“Fidelis has worked diligently in its efforts to bring our residents and council what we want, and I am grateful for the company’s interest in designing and building a high-quality shopping center. I firmly believe the finished product will be vastly improved, and one that you can be proud of.”

Stacey Matejka, Fidelis spokeswoman, said that demolition of the old mall is underway.