Just what is going on at Mari Mac plaza? Why does the plaza look the way it does and why won’t Kroger, which owns the property, lease some of the empty storefronts? County Councilors asked these questions to Kroger representatives during its Jan. 30 meeting in Council Chambers.

Councilor Susan O’Leary requested County staff prepare an overview and update of the development agreement with Kroger for the new Smith’s development and that Kroger staff be invited to discuss the status of their property development at the old and new Smiths’ sites.

During the meeting Jan 30, Kroger Vice President of Corporate Development Steve Sorenson and Nick Tompkins of Corporate Real Estate gave an overview of the status of the Mari Mac property located on Central Avenue and the new Smith’s Marketplace located on Trinity Drive.

There are a number of issues; Sorenson said not all the commercial spaces in the new shopping center have been rented and the right tenant for the Mari-Mac Plaza has not been found.

“One of the challenges we face is the lack of tenants to occupy the space (at the new Marketplace),” Sorenson said. “We would love to have all of these empty spaces taken care of.”

As for Mari-Mac, he said there have been interested parties but the right one hasn’t come up. It is tough to find the right renter for such a large building, Sorenson said. He added they would be supportive of making the property mixed use or leasing the buildings to the laboratory.

Sorenson added the four years the building has sat empty isn’t ideal to Kroger.  

“We don’t like the time either,” he said. “We’re all motivated and have a lot of interest to get it done.”

Tompkins said the former Smith’s building is on the Kroger real estate website and Kroger is striving to rent out the remaining spaces on Trinity. He added he and his team are trying to be as flexible and creative as possible.

“We’re definitely hopeful for both of them and committed that we follow through,” Tompkins said.

Deputy County Manager Steve Lynne also provided some information to Councilors on the property. He reported the lease and development agreement required a complete development of the anchor store, Smith’s Marketplace, full site development and at least another 10,000 square feet. This was achieved. However, requirement during the Subsequent Development Period to develop at least an additional 35,000 square feet within five years of the effective date isn’t met. Lynne said the County is requesting Kroger provide an amended plan of how it will complete the undeveloped portion.  

Lynne further reported on the revenue the County and Los Alamos Public Schools (LAPS) receives from Kroger. He said between June 2013 and January 2018, Kroger paid a total of $1,874,291.53 on this lease with $626,285 being County revenue and $1,248,006.53 being revenue of LAPS. Additionally, Lynne said property taxes from both sites total approximately $225,000 annually.  

Several Councilors commented that the County is willing to help Kroger in getting these spaces rented. Councilor Rick Reiss said he was aware of a restaurant that was interested in renting space in the Mari Mac plaza but that it never came fruition. He wondered why not.

Tompkins said while it seems great to get a deal done quickly, it runs the risk to do what is necessary to take care of the big box store and center as a whole.

Councilor Antonio Maggiore said he was concerned about the condition of the Mari Mac plaza. He said he felt the Mari-Mac plaza wasn’t being maintained at the same level as the Smith’s Marketplace. Even though the two properties have the same manager, Maggiore said he questioned just how often the property manager crossed the street to look at the Mari Mac Plaza. He added he is not the only one who feels that way, many in the community share his concerns.

Tompkins said having a new store next to an old one is tough because the older building is going to look bad. “It is just a fact of maintaining something much older is much more difficult,” he said.

O’Leary asked if Kroger would be interested in an outright sale of the Mari Mac Plaza. She also asked if Kroger would be open to a joint venture.

Tompkins said Kroger is open to everything. Local developers interested in the Mari Mac Plaza can contact either Lynne at steven.lynne@lacnm.us or call 505.663.1750 or Economic Development Administrator Joan Ahlers at Joanie.ahlers@lacnm.us or 505.662.8296. Tompkins said interested parties should submit a letter of intent.