SAUGUS — Shopping centers everywhere have taken a hit during the COVID-19 pandemic, and the Square One Mall is no exception.
According to data provided by the Saugus Board of Assessors office, the large shopping center situated along Route 1 paid just $2,208,219 in property taxes — which are calculated based on a commercial property’s assessed value — in Fiscal Year 2020 — more than $636,000 less than the $2,844,219 it paid in FY19, and $570,604 less than in FY18.
Pandemic aside, Town Manager Scott Crabtree said those numbers might be a sign changes are coming for in-person retail.
“Just in general, the economy is changing,” Crabtree said. “Based on Amazon’s growth, I think that in itself is having an impact in all communities.”
Property taxes act as a major source of income for local governments and are used to finance a number of public services, including transportation, emergency services, education, parks, and libraries.
In Saugus, the Square One Mall — whose Sears store served as an integral part of the center for decades before it closed in July — is the second-highest generator of the town’s tax revenues, making the site an invaluable source of funding for the local economy.
“We’re always looking at what we can do to support (the mall), but I think a lot of people don’t know exactly what’s going to happen in the future,” Crabtree said. “Is retail going to survive?”
Despite its bleak exterior, there have been moves to revitalize the space.
In May 2020, the town’s Board of Selectmen voted unanimously to approve licenses for a family entertainment center — overseen by Marblehead-based company Apex Entertainment — that would feature bowling, bumper cars, laser tag, go-karts, arcade games, sports simulators, a ropes course, virtual reality games, and a full-service restaurant and bar.
But nearly a year later, Selectwoman Debra Panetta told The Item the board has yet to receive any updates on the project.
Despite recent store closings, however, she is staunchly supportive of the shopping center that has long served as a beacon of Route 1’s commercial success.
“I want to keep our mall. I don’t want to see it more residential,” she said. “I want to keep our commercial base. We are very fortunate in Saugus to have the commercial base that we do so that we’re able to keep those residential tax rates low. I’m hoping there’s something we can do to bring more life into it.”
Panetta, who said she does much of her shopping at the Square One Mall, noted she’s witnessed the same situation play out at a number of other local shopping centers, which have all taken noticeable hits from the pandemic.
“It saddens me every time I see a store close,” she said. “You want to see businesses succeed.”
As a private citizen, Panetta said she understands the appeal of online shopping, but added she doesn’t feel online transactions provide shoppers with a comparable experience.
The mall isn’t just a place to shop, she argued, but it also serves as a place for families and friends to gather, and offers communities entertainment options they wouldn’t necessarily be able to find elsewhere.
“My kids are always ordering from Amazon. You go there, you get a good price, and you get it within a day or two,” she said. “But shopping is entertainment. It’s something to do. You try things on, you see how they fit, you go with your friends, you go with your family. It’s a different experience going to a store than going online and shopping.”
Elyse Carmosino can be reached at [email protected].
