The Hamilton County Board of Revision established a new county-designated value of $16.3 million for the Fourth Street mall and 530-space garage. The reduction means owner Tower Place Limited Partnership will receive a substantial cut from its current annual property tax bill of more than $575,000.

Michael McCluskey, a member of the board, cited the mall's difficulty in keeping national chain tenants in the face of suburban competition as one of many factors that justified the cut.

Stores that have closed in recent years include Closson's, Banana Republic, The Nature Company and 15 smaller shops, according to an appraisal completed on behalf of Tower Place.

"The loss of tenants was considered more than normal," McCluskey said.

An appraiser hired by the mall cited downtown's sluggish retail environment as a key reason to justify the property-tax reduction. The mall's operating income dropped from $2.5 million in 1999 to $1.3 million in 2003.

"The most dramatic evidence of this is what has occurred at the subject property," wrote Martin Hunter, the appraiser hired by Tower Place. "Tremendous marketing efforts have been made over the last several years to bring in new anchor tenants into Tower Place and to keep up appearance. To date, these efforts have only brought mixed results."

The mall has attempted to shore up its tenant base by offering rent-free deals to popular shops such as Ann Taylor, Essentials for Body and Soul and Great Steak and Fry, according to Hunter's appraisal.

Other tenants that have been offered reduced mall costs include Sbarro, Sunglass Hut, Coffee Beanery and Margaritas.

Tower Place, managed by Madison Marquette, has gradually shifted from a strong roster of national tenants to one that is just as likely to be home to locally based retailers.

Madison Marquette development director Rob Acker declined comment until he could review the board's written decision.

Cincinnati Public Schools, primarily funded by property taxes, urged the board to reject Tower Place's plea. The district will review the decision and decide whether to appeal, said Dave DiMuzio, the district's lawyer.

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