T-R FILE PHOTO — A Dallas-based investment company, Reserve Development, is in the process of purchasing the Marshalltown Mall. If the sale goes forward, they will buy it from Marshalltown Development Group, a holding company of Kohan Retail Investment Group in New York.

Some changes might be coming to the Marshalltown Mall.

A new business, Reserve Development, an investment company based in Dallas, is doing its due diligence to go through the process of purchasing the property, according to Marshalltown City Administrator Carol Webb.

“The potential buyer has visited a few times and toured the mall,” she said. “They have talked with the city about potential incentives.”

Webb said the incentives the business officials seemed to be looking for were for taxes, such as tax rebates. Beyond possible incentives, the city will not have much of a role in the situation.

She added that Reserve Development is attempting to work with the remaining mall tenants.

“They are interested in working with the tenants to stay in the main mall or in an outlet,” Webb said. “They are trying to put their best foot forward to negotiate that.”

The remaining Marshalltown Mall tenants include Planet Fitness, the Marshalltown Driver’s License Station, Hobby Lobby, Shoe Sensation, Plaza 9 Theatres and Mama DiGrado’s.

Some former Marshalltown Mall tenants, such as JCPenney, The Thrifty Buzzarr, Younkers and Bath & Body Works shut down. Other previous tenants, such as Oliver Beene, Game Haven, Black Iron Barbell and Remix Dance Academy had to relocate after the electricity was shut off in November 2023 and they did not have outside access. The owner, Marshalltown Development Group, neglected to pay the electricity bill and power was shut off in the main areas, such as the hallways, bathrooms and the parking lot. The lights have not been turned back on since then.

Marshalltown Development Group is a holding company of the New York-based Kohan Retail Investment Group owned by Mike Kohan. Due to power not returning, the owner faced numerous city code violations, including:

• Equipment not being maintained to ensure safety of occupants;

• Non-compliance with orders and notices;

• Fire protection and life safety systems required by city code or the International Building Code were not installed, repaired, operated, tested and maintained;

• Fire detection, alarm and extinguishing systems were not maintained in an operative condition at all times;

• All areas of a building containing water-filled piping which does not have other means of freeze protection were not maintained at a minimum temperature of 40 degrees F;

• The means of egress serving a room or space was not illuminated during times the room or space was occupied;

• In the event of power supply failure, in buildings that require two or more exits or access to exits, an emergency electrical system did not automatically illuminate interior exit access stairways and ramps, exit passageways, vestibules and areas used for exit and exterior landings for exit doorways leading directly to the exit discharge.

Marshalltown Development Group was found guilty of code violations during a trial in July. However, a new trial was ordered after a continuation was denied.

Webb said the possible new owner met with the Marshalltown fire marshal to discuss ordinances. She added that Reserve Development has been successful in revitalizing commercial properties, such as Woodside Village in Coppell, Texas.

“I think it will be fabulous,” Webb said. “Having local retail opportunities is a great benefit for residents.”

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Contact Lana Bradstream

at 641-753-6611 ext. 210 or

lbradstream@timesrepublican.com.