Penn Central Mall: Vision and History

Rivola Theater (photo courtesy of the Oskaloosa Herald) Pictured above is the Rivola Theater demolition in process. The Rivola was located in the 200 block of High Avenue West and was the last building cleared to make way for the construction of Penn Central Mall on Dec. 1, 1984. Historical artifacts were removed from the theater before demolition and the marquee is on display in Smokey Row.

What a difference a year makes. In 1984, a group of Oskaloosa volunteers set out to replace deteriorated buildings in Oskaloosa’s downtown west side and in 1985, Penn Central Mall opened with a crowd of over 11,000 on hand.

Since its opening, the mall has increased property values and contributes $400,000 in additional property tax revenue over the structures that once existed. The total gain in property tax revenue over the past 25 years related to the mall development is more than $8 million.

The project came to fruition thanks to a wide-range of community organizations and volunteers who helped with the effort.

“It’s a great day for this great city,” Senator Charles Grassley said at the mall construction dedication ceremony in 1985. “We celebrate the beginning of construction of this mall…and people with a vision,” he said. The vision for a mall connected to the historic downtown district grew out of a series of problems that required a comprehensive solution.

Downtown Decline

Between the 1950’s-70’s, fires and building collapses began to occur on Oskaloosa’s west side. Rental and property values in the entire central business district declined. Lower values meant there wasn’t enough revenue to maintain and update existing buildings which contributed to additional deterioration in the area

Initially chamber leaders focused their efforts on the need for additional parking in the downtown to boost sales by making it easier to park and shop. They planned to purchase areas left vacant through demolished buildings on the west side for parking.

Project leaders determined a study was needed to determine the feasibility of undertaking mall construction and major revitalization of the west side in order to prevent further decline in the downtown.

“I agreed to be part of a chamber committee if something tangible happened,” said Musco President Joe Crookham. “Then, while driving in the area one Sunday afternoon thinking about possible solutions, the idea for connecting the town square to a mall through an east alley occurred to me.

Renewal Plan

Bricks (photo courtesy of the Oskaloosa Herald) The Oskaloosa Community Development Foundation sold 840 bricks to help raise funds for construction of the Penn Central Mall. Each brick had the name of a donor engraved in it. “My ancestors helped to make this possible,” urged one Oskaloosa resident in an editorial encouraging investment in the project. “I think we are well on our way to a better future,” he said.

A mall planning team and board were formed. The group recognized a more comprehensive approach was needed to maintain the vitality of the community. They wanted to build on Oskaloosa’s base as a retail center for southeast Iowa and its position as a central traffic arealocated at the confluence of five highways. A marketing survey was conducted which indicated what retail needs existed. Opportunity for general retail anchor, men’s and women’s clothing and grocery were identified in the report as higher priority needs for the area.

The study also indicated there was a lack of buildings to support effective retail focus. Drilling out the decay in the west portion of the central business district and replacing it with a new structure would do four things: eliminate high risk buildings; make town square buildings more valuable; create new retail space to attract and retain strong retail businesses; and, recapture retail traffic for the area.

The mall structure was designed and developed in 1983-4. The developers received a $3.4 million Urban Development Action Grant that included $800,000 to help relocate over 60 businesses and houses affected by construction of the mall. The $2.6 million balance of the UDAG award went toward construction of the mall.

Other sources of funds for the $12.4 million facility included a $6.6 million loan and $2 million from local investors and direct contributions through the sale of bricks located in the mall center court. Sernett’s Department Store invested $1.2 million to construct their anchor store in the area that is now Hy-Vee.

Marketing study data was also used to attract tenants for the new mall. Sernett’s and JC Penney became the original anchors and K-Mart became the third anchor a few years later. Other stores were recruited and relocated in the mall as part of the redevelopment. When the mall opened in 1985 occupancy was over 70 percent.

Economic Impact

Prior to the mall development project, the west side downtown area contributed about $70,000 in property tax to the community. Property values in the area increased to produce over $400,000 annually in property tax value for an increase of over $8 million in additional tax revenue for the community.

The additional sales tax revenue generated supported construction of a new law enforcement center, remodeling and expansion of the Community Library, construction of a new elementary school and expansion and remodeling of the Oskaloosa High School.

In addition, approximately 200 new jobs for the community were created by stores in the mall. These jobs brought new people to the community as well as provided employment opportunities for many local residents.

Development in the downtown has continued with restoration of the town square buildings, park and bandstand. The mall and town square created an environment for the economically viable relocation and growth of several businesses previously housed in deteriorated buildings in what is now the mall area.

Mall Today

Musco purchased the mall in 2009 because remote ownership of businesses has resulted in a loss of direction and purpose for the mall.

“Our vision is to maintain and grow the retail activity in the mall and continue use of part of the building for our business,” said Musco President Joe Crookham. “Penn Central Mall is home to businesses that provide key products and services in our community. We also see the mall as a central gathering place for the community, which was part of the original vision. We are optimistic about the future of Oskaloosa and will continue planning to make the mall a key part of future growth.”

Musco
Penn Central Mall