TTA approves terms for new lease at Pullman Square

Much of the special meeting took place in executive session with officials from the Huntington Municipal Development Authority, which took the first steps last week in becoming the majority owner of Pullman Square’s shopping center.

Davis said the lease is a 70-page document and there would be a few modifications that included the amounts paid each year to the transit authority and setting up a second reserve fund. The current lease expires in 2049.

“Once this new agreement is filed and becomes public record, all the details will be released,” Davis said.

Last week, the Huntington Municipal Development Authority’s board of directors unanimously approved the plan calling for HMDA to create a limited liability corporation called Downtown Investment and to use $7 million of the $11 million it received from the city’s American Rescue Plan funds in April for economic development to acquire 72.5% of Metropolitan Huntington.

Currently, the Tri-State Transit Authority and Metropolitan Huntington are the owners of the properties that collectively create Pullman Square. Under the plan, the transit authority would continue to own the garages, 14 of the 16 theaters that make up Marquee Cinemas, the green square and some of the internal roads, which are leased to Metropolitan Huntington.

Two of Metropolitan’s owners, Tim Rollins and Bill Dargusch, will continue to each own 13.75% of the company and will continue to manage Pullman Square with the oversight of Downtown Investment.

Cathy Burns, executive director of the Huntington Municipal Development Authority, along with Huntington Mayor Steve Williams, who is also a HMDA board member, and HMDA banking consultant David Graley, attended the meeting.

“We have agreed to the structure of the new terms of the lease, but now we are waiting for TTA to solidify that agreement in a document that will be filed and available within the next few weeks,” Burns said.

Burns added that the Huntington Municipal Development Authority would close the deal to purchase controlling interest in Metropolitan Huntington this Friday.

“We are hopeful the deal will close with the bank on Friday and we get this new lease agreement done, which would take effect August 1,” she said.

Burns said existing leases with commercial tenants at Pullman Square will not change.

She said the $7 million deal to acquire controlling interest in Pullman Square reduces debt by $4 million.

“This provides more operating capital that will allow us to do future capital improvement projects, like roof and HVAC repairs or replacements,” Burns said.

Williams said the decision to purchase controlling interest in Metropolitan Huntington and renegotiate lease terms with the transit authority are decisions made by the Huntington Municipal Development Authority and not Huntington City Council.

“The Huntington Municipal Development Authority is able to do certain things that a city can’t, nor should it ever do,” he said. “The City Council approved the allocation of $11 million of American Rescue Plan funds to the Huntington Municipal Development Authority, and they have the authority to make these kinds of decisions.”

Williams said all of these local decisions bring “certainty” to Pullman Square.

“The tenants of Pullman Square will be able to take comfort in knowing there will be a local majority owner that will act in their best interests,” he said. “We want to do something to make sure for the next 50 years Pullman Square is protected, and that’s exactly what this plan will do.”