'Survival' at center of Fashion Outlets tax break deal

Town of Niagara, N.Y. (WBEN).....Faced with a myriad of challenges from a drop in Canadian shoppers to online retailing competition, the Fashion Outlets of Niagara Falls USA is looking to the Niagara County Industrial Development Agency for a financial lifeline.

And, to the NCIDA, helping the mall is something of a no-brainer.

"They are an anchor," said Andrea Klyczek, NCIDA executive director.

In the negotiated deal, Macerich Corp. - the mall's California-based owner - will pay a total of nearly $17 million in taxes to the Town of Niagara and Niagara County during the next 10 years. That saves Macerich more than $10 million in estimated tax payments.

"This deal is imperative for the stability and survival of the mall,:" said Kevin Clyne, Macerich attorney told NCIDA directors during a May 13 meeting.

The mall is suffering from a decline in customer traffic - mainly Canadian visitors who are eschewing visits to the U.S. because of political tensions caused by President Trump. Customer traffic is down almost 50% since early 2025.

In addition, Fashion Outlets faces competition from a similar deep discount outlet mall in nearby Niagara-on-the-Lake and from online retailing sites.

And, Macerich has a $76.4 million balloon payment due in early October.

"We are looking at short term survival,:" Clyne said. :We are just trying to keep the doors open."

The mall did receive a recent retailing boost when it was announced that Canadian retailer Urban Planet will be opening a 20,000-square-foot store at Fashion Outlets. The site will be the company's first in the U.S.

Klyczek said helping the mall is paramount.

Fashion Outlet has more than 800 employees working at one of its stores or restaurants.

Spin-off from the mall has created another 500 jobs.

And, the mall - by itself - generates more than $514 million in annual sales taxes for Niagara County.

"They are an employer who is very important to the community," said Mark Gabriele, NCIDA counsel.