A new redevelopment could be the impetus for the South Durango URA

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  • Required plan documents for a 31-parcel area around the Durango Mall have been completed and the 120-day TIF
    negotiation period with the taxing entities is underway.
  • The centerpiece of the possible South Durango URA is a proposed redevelopment by CenterCal, a well-regarded
    developer backed by the California Teachers’ pension fund. The plan would shrink and reactivate the largely
    vacant mall into about 230,000 square feet of retail, with a grocery anchor, two junior anchors, and outparcels.
    CenterCal says it faces a roughly $12 million funding gap, which it wants covered through a sales tax
    reimbursement.
  • The URA estimates the project could generate $50–66 million in county sales tax over 25 years. That revenue
    could also help make a 50-unit for-sale workforce townhome project behind Rivergate fully affordable, with any
    surplus going toward local infrastructure.
  • Because the city and county are the only entities that can provide sales tax TIF, they effectively decide whether
    the project happens. The URA is asking both to commit to an expedited decision by Thanksgiving, ahead of
    CenterCal’s December 1 earnest-money deadline, to avoid a repeat of the failed Kensington deal.
  • Final plan adoption would potentially come around Q2 2027, and only if the mall sale actually closes.

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