FERGUS FALLS, MN – At its October 21 meeting, the Fergus Falls City Council authorized entering into a purchase agreement of the Westridge Mall. The mall’s disrepair, deterioration and failure to pay bills, threatens the existence of four businesses. There are several contingencies in place prior to a tentative December 31, 2024 closing. The stated purchase price is $419,000, the amount owed by the current seller on the mall’s mortgage.
Four businesses – Westridge Theater (CEC Theaters), Dunham’s, Dollar Tree and a holding company for Harbor Freight share a fire suppression system with the mall and are subject to being closed if power to the mall were to be shut off. “The city’s intent in the short-term is to stabilize the existing businesses,” said Andrew Bremseth, City Administrator. In the long-term, the vision is for Otter Tail County’s Community Development Authority (CDA) to own and redevelop the property through public/private partnership opportunities.
The City Council has been discussing the project since August 5. The decision is timely because one of the contingencies is receiving grant funding from the State of Minnesota’s Energy Transition Fund. Otter Tail County will take the lead on the grant application in partnership with the city. The grant has a rolling deadline with expiring funds as other communities are awarded funds for their projects.
Another contingency is that the owner’s outstanding debt to six creditors becomes successfully negotiated to zero balances, or other amounts as deemed satisfactory by the City Council.
The final contingency is that Otter Tail County’s CDA approves acquisition of the property for future demolition and redevelopment. After 90 minutes of discussion among City Council members and the public, the resolution to proceed was approved. Due diligence is scheduled to be completed by December 6 with a closing date of December 31, 2024.