A state board has approved a local tax break that will enable the Hanover Mall to carry out nearly $40 million in upgrades to the Route 53 facility.
The tax increment financing agreement negotiated between the town and the mall owner, PECO Real Estate Partners, was approved by special Town Meeting last June, but required state authorization. That approval came in a recent vote by the state’s Economic Assistance Coordinating Council.
PECO Real Estate Partners announced last fall it had acquired the mall from CW Capital for $39.5 million.
The 16-year tax deal exempts the mall owner from a portion of the additional property taxes generated from its investment, for an overall tax savings of $8.5 million. During those 16 years, officials have estimated the mall will generate an estimated $14 million in overall revenue for the town.
The largest feature of the project will be the demolition of the 200,000-square-foot indoor portion of the mall and its replacement with a new outdoor lifestyle center consisting of standalone shops and a multitenanted building in a village-style setting.
With the investments, PECO Real Estate Partners plans to rename the mall as Hanover Crossing.
“We are thrilled that the Economic Assistance Coordinating Council approved the tax agreement, which will allow us to pursue our mission to transform Hanover Mall into Hanover Crossing in the near future,” said Ed Callahan, general manager of the mall.John Laidler can be reached at firstname.lastname@example.org.