This $266 Million figure is just the total sales of all the stores in the mall in the nine month period from when it opened in March 2012 until Dec 31, 2012. Neither the church nor Taubman (The company which manages the mall for the the church) see anything close to that figure. The management company collects the rent from the stores and and other things like parking, change thrown in fountains, etc. and then pays what ever the contract they signed with the church stipulates the church's real estate development arm.
There was an article a few days ago in the Trib that it was taking business away from the Gateway...
Not that I care...but it is interesting that TSCC is running competition with downtown businesses. Maybe to cause the competition to fold and then buy the property?
Imagine SLC with LDS only downtown. Only time will tell.
That's total sales, which is only relevant to the CULT as far as maintaining occupancy. If sales are bad the tenants start pulling out. It's the same with rents - too high for the amount of sales and tenants bail.
The CULT gets whatever they charge for rent, plus profit on their own stores - Deseret Book? It's not a lot for 3 quarters, and with the initial hype surrounding the opening.
Maybe there should be a campaign to pressure large tenants to leave instead of supporting a gay hate cult that treats women as breeding sows and only gives blacks equality when tax free status is threatened.
Wait for the newness to wear off. Everyone goes to see the new place, then, unless there's something compelling to keep them coming, shoppers settle back into their old patterns. So lte's see how things are going in a couple of years.
The amount is an average of 2.6 million per store which is $300,000 per month. A large store would be losing money. Assume that, in fact, stores like Nordstroms have a much higher amount of sales, such that the five biggest have half the sales, it means a small store only averaged $150,000 per month or $5000 per day. That is not particularly profitable. Taking rents at a max of 20% of sales to be profitable, the mall is paying out gross to TSCC $72,000,000 per year less taxes, expenses, and interest. Interest even at a mere 3% on 1.4 Billion is $42,000,000 per years. Plus expenses of upkeep, salaries, and depreciation, the mall may really be losing money for TSCC. If stores begin losing money and closing, the situation becomes difficult.
I would have expected a considerably higher sales number for 9 months. Iron Man 3 had box office receipts of $175 million its first release weekend. Production budget was $200 million.
$200 million gross for 9 months on a rumored investment of $5-6 billion must be very disappointing for the suits.
During development there seemed to me to be a lot of hype regarding the market for expensive and luxury goods in the Salt Lake City area. I recall wondering who has that kind of money. Figures like $75,000 average annual income for a Salt Lake family were tossed around. The only thing I could think was they must be folding all of Park City into the calculations to come up with numbers like those. And, the stores may now be realizing that the Park City residents whose incomes skewed the local income figures are only around a few weeks a year for skiing and rarely bother to drive to Salt Lake to shop.
It will be interesting to see how this plays out over the next 5 years or so.