SIOUX FALLS, S.D. (KELO) — Hobby Lobby, Five Below and Marshalls will join the mall in Yankton, in part because of a $2 million parking lot project.
“We repaved the parking lot and now the parking lot is getting new lights,” said mall owner Matt Evans. “You can’t just patch the holes. It just needed something brand new. The stores wanted it, we wanted it.”
Dave Mingo, the community and economic development director in Yankton, said often any prospective retail tenant looking for a location will sign a letter of intent contingent on parking lot improvements.
To Mingo, “there is no way the mall gets those leases without those improvements.”
Mingo and Evans said the parking lot improvement cost about $2 million.
Evans bought the mostly vacant mall in the summer of 2023. In a KELOLAND News story, Evans said he was committed to filling vacancies. The mall had only a few tenants in 2023. Evans named it Event Central.
“I’m in awe. It’s awesome,” Evans said of the mall’s success in just over a year.
The three new stores will fill about 90,000 square feet in the 250,000 square-foot mall. Hobby Lobby will occupy 57,000 square feet. Marshalls will occupy 23,000 square feet and Five Below will be at 10,000 square feet. They join Dunham Sports, a long-time mall tenant, at about 40,000 square feet.
Construction to accommodate the three new tenants has started, Evans said. The stores plan to be open for the 2025 holiday shopping season, he said.
The stores have 10-year leases with options to renew after that.
Evans has worked with Ryan Tysdal of VanBuskirk Companies and the city’s community and economic development to fill the mall.
Evans can earn up to $1.7 million through a sales tax rebate incentive.
The city collects a 2% sales tax on retail items, Mingo said. Evans would receive a 1% sales tax rebate on sales generated by new tenants in the mall, Mingo said. The 1% rebate is really a 50% split with the city on its sales tax rate.
The rebate is capped at $1.7 million or 10 years, Mingo said.
“For him, it’s a huge tool to go his lending institution and private investors,” Mingo said. The city has made commitment to the mall project which shows this is “not just Matt’s wild idea.”
Evans is succeeding where the prior mall owner didn’t in large part because of his interest and commitment, Mingo said.
The city tried to work with prior owners but those owners didn’t have much interest in the Yankton facility, Mingo said.
To have a local owner who wants to improve it, “is a huge win for the city,” Mingo said.
Although Yankton Thrive, a non-profit organization that focuses on community and business growth, did not work with Evans on the mall, its executive director said the speed of which the mall has found three major tenants illustrates Evans dedication.
“Matt was very dedicated to going out to find tenants,” said Nancy Wenande, the executive director of Yankton Thrive. Working with VanBuskirk was also successful, she said.
The three new stores are a good fit in Yankton, Wenande said.
The city is also gaining a $30 million manufacturing investment, a new mental health facility and the school district will have a new early childhood education center, she said.
Increased retail options can benefit those projects and vice versa, Wenande said.
Evans said the success and support for existing mall tenants such as Bro Burger Bar and Grill, Play Day, Cinema Magic, Dunham’s, Restore Church and River City Gymnastics is appreciated.
He wants to build on the existing success and the securing of three new tenants to get more tenants for the mall.
On Tuesday, he said he’s already received letters of intent from potential future tenants.
