RUTLAND — After two of the 12 businesses in Rutland’s Diamond Run Mall received eviction notices last week for being behind on rent, the property’s management company, Zamias Services Inc., said that the mall would soon shut down.
Although the company has not announced a date for the closure, Zamias’ CEO Joe Anthony told the Rutland Herald last week that it would be sooner rather than later. He said his company intended to redevelop the site.
The mall has changed ownership several times since Zamias built it in the 1990s. The property is currently owned by BAI Rutland LLC and Zamias serves as the manager.
Plans for the redevelopment have not been made public. Rutland Town Selectboard Chair Josh Terenzini said he has had several conversations with Anthony about possible next steps.
“From the insight he has offered me and our board, there are some pretty exciting future developments for that parcel,” Terenzini said. “If a quarter of what Zamias plans on doing up there happens, it’s going to be one of the greatest things to happen in Rutland Town in a long time.”
Terenzini attributed the decline in the shopping mall to the rise of online retail options like Amazon, which have left big department stores struggling to stay in business.
Like other shopping centers across the country, the Rutland mall has suffered from high vacancies and fewer visitors. Two of the Diamond Run anchor store sites where Sears and Kmart used to be are vacant. Sears, which owns Kmart, has been struggling for years, and declared bankruptcy last year.
Steve Peters, the executive director of the Downtown Rutland Partnership, said he was not surprised to learn that the Diamond Run Mall would soon shut its doors.
“After the anchor stores left over the past few years, it’s been clear that something new and creative needed to happen with the space,” he said.
Peters said the closing might have a positive impact on Rutland if remaining businesses at the mall move to storefronts in the downtown retail zone.
“Years ago, downtowns were the place to be. Then malls became popular and downtowns went on the decline,” he said. “Now, there’s a return and reinterest in downtowns as more people want to be outdoors, have experiences and be part of a community.”
Peters visited the mall on Monday to inform business owners about the opportunities available in downtown Rutland, which currently has an occupancy rate of about 75%.
“We encouraged folks to check out the map on our website that shows the currently available properties for rent,” he said. “At the moment, I know of at least three (business owners) who are either making plans or considering locating in downtown. I imagine we will have more conversations in the near future.”
Mountain Man Jewelry and Mountain Music Vinyl is the only store in the mall so far that has concrete plans to move downtown, where they plan to condense their name to “Mountain Music.”
The store’s owner, Meshach Tourigny, believes that a combination of unique goods and customer loyalty have allowed his store to weather the downturn in business at the mall.
“We always felt we’re a little bit Amazon-proof with our used records and equipment,” he said. “And people like to try on jewelry, so it keeps us going.”
The shop has been located in its current storefront for eight years, but Tourigny’s family has deep roots at the mall. His father started a jewelry kiosk there in the mid-1990s.
“All through high school, I always worked at the kiosk, so I always had a foot in this place,” Tourigny said.
Tourigny started looking for a retail location downtown earlier this year when it became obvious that the mall wasn’t going to bounce back. He feels Zamias is not communicating openly with business owners about what will happen next.
“One of the weirder things is, up to this point, we’ve still not had official notice that the mall is closing. The mall manager has given us a couple of dates that they think it might happen but we still don’t know,” he said. “I know a lot of people here, and it’s kind of tough to see how people are being treated at the end. I think they could have done more for us in terms of notice.”
He would not confirm his new location until he signs a lease later this week, but he expects to move in late October.
“Downtown has got a lot of nice things going on right now,” he said. “There’s always a lot of anxiety moving, but we’re pretty confident and hopeful. Everyone we’ve talked to is super excited we’re heading down there, so the support has been really overwhelming.”
Anthony did not respond to VTDigger’s repeated request for comment.
