Why Topeka's old White Lakes Mall was cited as a warning in STAR bonds debate

Why Topeka’s old White Lakes Mall was cited as a warning in STAR bonds debate

Posted by author February 21, 2025 Shopping

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Kansas lawmakers are considering a bill that would extend the state’s STAR bond program to finance mall redevelopments.
The proposal comes as several malls across the state, including Towne West Square in Wichita and the former White Lakes Mall in Topeka, have struggled in recent years.
Proponents of the bill argue that it is necessary to prevent further economic decline and blight, while opponents have raised concerns about the program’s track record.
The bill passed the Senate and may be considered by the House.

Three years after White Lakes Mall in southwest Topeka was demolished, its memory lives in the Kansas Statehouse, where lawmakers pointed to it as a warning for the future of other dilapidated malls around the state.

Legislators were debating a bill on economic development and a proposal to expand the program to help finance mall redevelopments.

Sen. Larry Alley, R-Winfield, said lawmakers can “see the future” of what might happens if the program isn’t expanded.

“Just drive down and see the White Lakes Mall: a hole on the ground,” Alley said. “That’s what could happen.”

The now-demolished mall was along the route that Wichita-area lawmakers took on their drive to the capital city. Now, they are using its memory in an attempt to save a struggling mall in west Wichita.

“For those of us who come up from Wichita, we pull off the turnpike and come up Topeka Boulevard, and you see the old mall that’s getting torn down slowly,” said Senate Majority Leader Chase Blasi, R-Wichita.

Blasi warned that without state economic development tools to help it transform, Towne West Square could go the way of White Lakes.

Kansas bill would extend STAR bond program

The comments on White Lakes Mall came as senators debated Senate Bill 197. The Senate on Wednesday passed the bill 32-8, sending it to the House.

The legislation is primarily a reauthorization of Sales Tax and Revenue Bonds, more commonly referred to as STAR bonds. The economic development tool allows local governments to issue bonds to finance major commercial, entertainment and tourism projects. Sales tax revenue generated by the development are then used to pay off the bonds.

Without the legislation, the STAR bonds program will expire in 2026. An amended version of the bill would extend it to 2028 instead of the 2031 sunset that was originally proposed.

“STAR Bonds play an important role in growing the Kansas economy,” said Bob North, chief counsel of the Kansas Department of Commerce, in written testimony earlier this month. “It is a unique program that creates tourism and entertainment attractions. We look forward to supporting our current projects and working to establish new ones.”

But STAR bonds have vocal opponents, particularly among a faction of Republicans who point to poor audit results and some projects struggling to pay off the bonds.

“I question some of these projects,” said Sen. Caryn Tyson, R-Parker. “I don’t support STAR bonds.”

The bill makes some changes to the STAR bond program, like requiring collection of visitor data, requiring public disclosures, eliminating eminent domain power for such projects and making malls eligible.

Under the bill, a mall redevelopment project could be eligible for STAR bonds if at least 50% of its space is unoccupied. Such a project would require a minimum investment of $10 million.

Lawmakers say STAR bonds can help struggling malls

Sen. Doug Shane, R-Louisburg, attempted to remove the malls proposal from the legislation.

“While I understand the intent and have seen firsthand what an eyesore an abandoned mall is, I really struggle to continue to expand the STAR bond program,” he said.

Sen. Joe Claeys, R-Wichita, pointed to Towne West Square. He said it was once a vibrant place to shop but is now in disrepair.

“Let me be absolutely clear about what’s at stake here,” Claeys said. “This isn’t just about saving a shopping center. This is about preventing what could become a catastrophic situation in west Wichita.

“Right now, Towne West Square sits at a tipping point. We’ve already seen the utilities cut off five times in seven months. We’ve watched businesses and nonprofits forced to relocate. But make no mistake, what we’re seeing now is nothing compared to what might happen if we fail to act.”

He said the “devastating consequences of inaction” can be seen with mall closures around the country.

“These aren’t just failed businesses,” Claeys said. “They become community catastrophes. When large malls collapse, they don’t just quietly close their doors. They become a massive deteriorating structure that drains police resources, it destroys the neighboring property values and eventually requires millions of dollars in taxpayer dollars for demolition and cleanup.”

In the case of Topeka’s West Lake, it was abandoned in 2011 when the final tenant left. Considered a community eyesore, the city condemned the building in 2020 and in 2021 ordered the mall be demolished after the structure was deemed unsafe. At the time, the city said the demolition could cost as much as $2.5 million.

“It’s not just Wichita that has this issue there,” said Sen. Mary Ware, D-Wichita. “There’s malls in Hutchinson, in Salina, and I’m sure that’s not the end of the list. Those are just the ones that I can think of off the top of my head.”

Sen. Ron Ryckman, R-Meade, said he was in Hutchinson around Christmas and walked through the mall.

“It’s almost empty,” he said, adding that STAR bonds “can help places like Hutchinson.”

Sen. Jeff Klemp, R-Lansing, said Leavenworth and Wyandotte counties likewise have dilapidated malls that could benefit. Sen. Pat Pettey, D-Kansas City, suggested STAR bonds could have potentially prevented the closure of the Indian Springs Mall.

Towne West is in Blasi’s district.

“I have many fond memories growing up going to the mall when it was full of stores and bustling, full of activity, and people running around having a great time and making memories with their friends and family,” he said. “Today, we all know, across America malls are changing, and we have to adjust for the changing times.”

Jason Alatidd is a Statehouse reporter for The Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.