SALINA, Kan. — September 8, 2025 — At a study session on Monday, developer Rick Worner told the City Commission they have the mall under contract and intend to acquire additional vacant parcels on the property. The plan, they said, is to replace a declining retail center with what Warner called a “multi-year turnaround” involving hospitality, restaurants and family entertainment.
The proposal would convert the former JCPenney space into a 60,000-square-foot convention center, connected to a branded hotel. The AMC theater would be rebuilt with recliner seating and modernized sound systems, while the family entertainment center would be updated. Developers said they expect four to five restaurants to be part of the early phase.
A separate outdoor district, patterned after the “Chicken N Pickle” concept in Kansas City, would focus initially on sand volleyball, supplemented by pickleball courts, lawn games and food service. Warner said the group has also submitted a letter of intent to a company that operates Topgolf-style venues.
A property in decline
The presentation underscored the precarious state of Central Mall. Warner told commissioners that more than half the tenants are on month-to-month agreements or leases that can be canceled with 30 days’ notice. Effective vacancy, he said, is closer to 60 percent. Lease rates are unusually low, in some cases $3 per square foot, compared with the $40 per square foot often required to sustain new construction.
“You cannot finance improvements on those terms,” Worner said, adding that the situation is similar to Wichita’s Town West Mall, which was recently demolished and converted into an industrial site.
Traffic remains significant but below what national retailers require. According to Placer.ai, a firm that tracks retail visits, the mall drew 3.4 million visits in the past year. Warner said the development must reach at least 4 million annual visits to attract certain national tenants.
Financing tools
The overall cost of the project is estimated at $146 million, including an $8 million rebuild of the parking lot. Warner said the developers are pursuing federal options through the Department of Agriculture, since the property qualifies for USDA financing.
City staff outlined the incentive package that would be needed. The central mechanism is the state’s STAR bond program, which allows future increases in state and local sales tax generated at the site to be applied to eligible project costs. Additional tools under consideration include a Community Improvement District, which adds a sales-tax surcharge inside the district; Tax Increment Financing, which diverts increases in property tax revenue; and Industrial Revenue Bonds, which exempt construction materials from sales tax.
Officials stressed that current tax collections would remain unchanged, and that STAR bonds are not backed by the city’s general obligation debt. “Only the incremental growth is captured,” staff told commissioners.
A narrow timeline
The state law enabling STAR bonds for mall redevelopment took effect July 1 and requires project plans to be approved by the Kansas Department of Commerce by December 31. Warner said only a small number of projects statewide — perhaps two or three — are expected to meet the deadline.
Commission response
Commissioners discussed the need to stabilize a property they described as unsustainable in its current form. Several noted that the city must either allow Central Mall to decline further or attempt a structured redevelopment.
They also raised concerns about protecting downtown investment. Worner said the tenant mix would be designed to complement, not compete with, existing businesses and venues.
The commission is expected to take its next action within 30 to 45 days, when it will consider setting a public hearing to establish a STAR bond district and submit a project plan to the Department of Commerce.
If approved, the redevelopment would begin with the hotel and convention center and proceed in phases over several years.
