Clay, N.Y. -- The new owner of the Great Northern Mall in Clay plans to seek a reduction in the mall's $1.3 million annual property tax bill after buying the struggling retail center for a quarter of its $34 million tax assessment.

Sale documents had not been filed with the Onondaga County Clerk's office by the close of business Friday. However, the buyer, Mike Kohan of Kohan Real Estate Investment Group, of Great Neck, told syracuse.com he paid $8.5 million for the 895,000-square-foot mall in a transaction that closed on Thursday.

Signs advertise markdowns of up to 60 percent at the Macy's store in the Great Northern Mall in Clay. The department store is scheduled to close April 18, 2017, the latest blow to a mall that has been struggling for years.

Asked if he will seek a reduction in the assessment on the mall, Kohan said he would.

"We will be going to the town," he said. "But we want to work with them, by all means. We're working to help the community."

A major reduction in the mall's tax assessment would impact local governments and the Liverpool Central School District.

The mall pays $1.33 million in property taxes, making it one of the largest taxpayers in Clay, Onondaga County's most populous town. The lion's share of those taxes - $956,650 - goes to the Liverpool Central School District. The rest, $376,870, goes to the town and county.

Any impact from a reduction in the mall's tax bill might not come right away, however. Town Supervisor Damian Ulatowski said the town and the mall's previous owner signed an agreement last year locking in the property's tax assessment at $34 million, down from $38 million, for three years. He said the agreement supersedes any sale of the mall.

"That assessment has been locked in," he said. "That's my understanding."

Once the agreement expires at the end of the 2017-2018 fiscal year, the mall will be subject to a new assessment based on its market value at that time, he said.

Despite the potential for an eventual reduction in property tax revenue, Ulatowski said he was pleased that the mall has been sold.

Macy's has put its store at the Great Northern Mall in Clay up for sale. The department store chain plans to close the store on April 18.

"It sounds like he wants to reinvigorate it," he said. "We've been wondering for the past couple of years what the viability of the property was. I'm happy someone has stepped up to the plate."

Liverpool Central School District officials did not immediately reply to a phone call seeking comment.

Kohan, who owns 20 malls throughout the country, says he specializes in acquiring and turning around troubled malls. He said he is committed to finding new tenants for Great Northern, which has been hit in the past few years by the departure of quite a few stores.

The latest blow to the mall will come on April 18, when Macy's closes its store. Macy's owns its store within the mall and has put it up for sale. A store-closing sale, with markdowns of 40 percent to 60 percent, is going on now.

Kohan said he "can't name names right now" as to what new tenants he hopes to bring to the mall. However, his website indicates that his strategy for reviving struggling malls is to bring in local small- and medium-sized businesses of all types, as opposed to looking for big-box stores and national chains.

"Large spaces offer opportunity for fundraising events, festivals, farmers markets, miniature golf, dancing, concerts, banquets, theatre, and virtually any social gathering all under one roof with protection from the elements," the website says.

Kohan bought Great Northern from an entity named PWR3 4155 State Route 31 LLC, of Irving, Texas. That company, which is controlled by Texas-based special loan servicer C-III Asset Management, took ownership of the mall on June 30, 2015, from California-based Macerich after Macerich defaulted on a $35 million mortgage loan.

Great Northern Mall 13 Gallery: Great Northern Mall

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