Berkshire Mall Owners Press for Road District Dissolution

LANESBOROUGH, Mass. — Berkshire Mall owner JMJ RE Holdings says without a dissolution of the Baker Hill Road District, the potential sale and redevelopment with the mall would fall through.

 

The Select Board last week authorized two of its members to work on a compromise between the JMJ and the road district. The two entities have been at loggerheads over assessments to the district — and the district's purpose.

 

Tim Grogan, development consultant for JMJ RE Holdings, recently responded to iBerkshires' coverage of the meeting, during which the board discussed mediation but took no comments from the public or the mall owners. 

 

Grogan said JMJ has been under purchase contract with real estate developer Cypress Equities since May and has an intention to close in the fall.

 

"We are contractually obligated to deliver the property with the BHRD dissolved. If that does not happen, the mall will not get redeveloped. If the BHRD is not dissolved, the transaction with Cypress cannot close," said Grogan over email. "That is not a position JMJ adopted as leverage. It is the express term of a fully executed purchase and sale agreement. Should the town proceed in a manner that departs from the existing settlement framework, JMJ will evaluate all available claims to protect its contractual rights."

 

The town had initially agreed to seek the dissolution of the district through the Legislature based on JMJ paying $1.1 million to resolve all tax disputes. But that article was pulled from the annual town meeting when town officials said the mall's owners failed to make payment by the deadline. 

 

The road district was established 40 years ago to maintain the Connector Road between Routes 7 and 8 and assess the mall for fire and police protection. The mall closed in 2019 and its various owners since then have sought to redevelop the property.