Plans to redevelop Salina’s Central Mall property continue to move forward, with city officials signaling that the project is nearing the public-hearing phase required to establish a STAR Bond district.
The update was shared during the December 18 meeting of the Salina Community Economic Development Organization board, where City Manager Jacob Wood briefed board members on the project’s status and next steps
The proposed redevelopment, often referred to as the Destination Salina project, envisions a large-scale transformation of the aging mall site into a mixed-use development that could include a convention center, hotel, retail, and supporting amenities. While specific tenant names have not yet been finalized, city officials indicated that developers are actively in discussions with potential retailers, many of whom are described as being prepared to move forward once the project clears its next regulatory milestones
The mall property has long been identified as a key redevelopment opportunity due to its size, location, and existing infrastructure. Redevelopment efforts are intended to repurpose the underutilized site into an economic driver that attracts visitors, events, and private investment.
A key component of the project is the use of STAR Bonds, a financing mechanism authorized under Kansas law for large tourism-related developments.
How STAR Bonds Work
STAR Bonds, short for Sales Tax and Revenue Bonds, are a public financing tool used in Kansas to support major commercial, entertainment, and tourism projects. Unlike traditional bonds that rely on property taxes, STAR Bonds are repaid using sales tax revenue generated within a designated project district.
When a STAR Bond district is created, the state and local sales taxes generated by businesses operating within that district are pledged to repay the bonds used to finance eligible project costs. Those costs can include land acquisition, demolition, site preparation, infrastructure, and certain construction expenses.
Importantly, STAR Bonds do not use existing city or county tax dollars. Instead, they rely on new sales tax revenue that would not exist without the project itself. If a project fails to generate sufficient sales tax revenue, the bondholders, not the city or state, bear the financial risk.
Kansas law requires that STAR Bond projects meet strict criteria, including a demonstration that the development will attract out-of-state visitors and generate new economic activity. The Kansas Department of Commerce must approve each project before bonds can be issued.
Public hearings are also required as part of the process. These hearings give residents an opportunity to review project details, ask questions, and provide input before a STAR Bond district is formally established.
Next Steps for the Central Mall Project
According to Wood’s update, the next major step is scheduling public hearings to create the STAR Bond district associated with the Central Mall redevelopment
These hearings will occur before the City Commission and are required before any financing can proceed.
Once a STAR Bond district is approved locally and at the state level, developers may move forward with final design, tenant commitments, and construction planning. Bond issuance typically occurs after project approvals are secured and financing terms are finalized.
The project is listed on the organization’s prospect table as an active city-led redevelopment with an estimated investment of $146 million, though final costs and phasing may evolve as plans are refined
What This Means for Salina
If completed as proposed, the Central Mall redevelopment would represent one of the largest redevelopment efforts in Salina in recent years. Supporters view the project as a way to repurpose a declining retail site into a destination-oriented development capable of supporting conventions, tourism, and complementary retail.
As with any STAR Bond project, the redevelopment will be closely scrutinized as it moves through the public process. Key questions typically raised include projected sales tax generation, tenant commitments, construction timelines, and long-term economic impact.
City officials emphasized that the project remains in the planning and approval phase, with additional details expected to be shared as public hearings are scheduled and the STAR Bond application advances.
Salina311 will continue to monitor the Central Mall redevelopment and provide updates as the project moves through the public approval process and into future City Commission action.