Barboursville, mall doing well

Barboursville’s economic outlook remains positive. The budget is not so different from previous years, and the finances are experiencing only a minor decrease from this time last year.

The City Council approved the nearly $5 million budget during the Mar. 16 meeting. Mayor Paul Turman complemented the finance committee and was pleased with how the budget looked.
“We are holding our own,” Turman said.

While other areas of the country, even the county, have experienced negative consequences of the recession, Barboursville has not had any major changes. While Huntington has had user fees, and is now considering the 1 percent occupational tax, Barboursville hasn’t had to take any drastic steps.

“Barboursville’s budget is at 70 percent of our projected $5.3 million as of month-end March 2010,” said Diana Roy, finance department member. “We are only about $50,000 lower than our projected revenues for the same period last year. That is not bad considering the national economy.”

Roy said the local economy feels the effect of the recession much slower than bigger cities. Roy said the budget is doing well.

“I contribute this to our being conservative on expenditures where possible,” she said, “and trying to promote the economic health of the area by bringing in things like the Regional Soccer Tournament.”


The biggest revenue of the budget comes from B&O taxes, the majority coming from the
Huntington Mall.


“I would estimate the revenue from the mall to be about 70 percent of our B&O Tax revenue which this year is estimated to be $2.7 million,” Roy said.


Joe Johnston, Huntington Mall property manager, said the mall isn’t experiencing major changes in the number of businesses staying or leaving the mall property.
“It happens every year at this time,” Johnston said. “There’s probably less activity this year than previous years, but it’s not unusual that particularly this time of the year, early spring, we’ll have three to four stores close and three to four stores open.”


Johnston said it isn’t always the local business’ choice in the stores leaving. It’s sometimes due to changes being made in the national store chains. Johnston gave examples of Casual Corner and Petite Sophisticate, who both left within the last few years.


There are some changes that will happen this year. Stewarts Hot Dogs didn’t renew its contract and J.B. Robinson jewelers also chose not to renew. Qdoba just recently opened and Johnston said it is doing quite well. Shoe Carnival is opening in the space previously occupied by Dawahares near JCPenney. Johnston said there were realtors showing the property outside of the mall to people Tuesday.
“It’s ongoing,” he said.


Johnston said the Huntington Mall’s occupancy rate is higher than the national average.

“We are about 96 percent occupied,” Johnston said.

Johnston said he has been with the Huntington Mall for nearly 16 years and has seen good economic trends and flat economic trends.


“It doesn’t have as much affect on this shopping center as it does a shopping center that has a big boom,” Johnston said. “We’ve never experienced a big boom, so likewise we don’t experience a big letdown economically.”


Johnston said they do have to make changes to go along with the economy.


“It would be accurate to assume that during different economic times, the advantage swings back and forth like a pendulum to either the tenant or landlord’s advantage,” Johnston said. He said right now the pendulum is to the advantage of the tenant.


“The space is being rented or marketed at a lower rate than three or four years ago,” Johnston said.


Johnston said he anticipates a good future for the mall and notes some changes that he thinks will be coming.


“I anticipate the economy will pick up,” Johnston said. “I think this mall is geared to remain as the No. 1 retail shopping center in the region. Our third generation of ownership has taken over and I would look for our mall to be renovated in possibly 2011, no later than 2012, to upgrade and create excitement. Consumers like to see progress.”


With the source of Barboursville’s largest revenue looking promising, it’s looking good for the city’s future financial situation.