The Bloomington City Council will consider several items to boost redevelopment of Eastland Mall as an East Peoria developer is under contract to purchase the property.
The city announced Friday in a press release that East Peoria-based Cullinan Properties is under contract to purchase the entire 53-acre site for $11.3 million. According to the city, the deal could close as early as November.
Global real estate firm CBRE had the mall listed for sale throughout the summer, advertising it as a redevelopment opportunity.
“The city anticipates a comprehensive transformation of the Eastland Mall site,” the city said in a statement.
“This likely includes the demolition of the existing enclosed mall structure, while retaining Kohl's and other viable outparcels, and replacing the current mall structure with a modern outdoor retail and mixed-use destination.”
Most of the mall has been vacant for years. In property tax appeal filings over the years, the mall's current owner, CBL Properties of Tennessee, attributed the decline in mall traffic to a rise in online shopping.
Plans for the upcoming Oct. 26 meeting include a study into establishing a tax increment financing district for the property and approving a loan guarantee that would speed up loan processing.
If approved, PGAV Planners LLC would conduct a study on whether the property should qualify for a TIF district, which would provide tax rebates and other assistance to the developer. Creating a TIF district would require a separate vote by the council.
The existing Empire Street Corridor tax increment financing [TIF] district, for example, has helped revitalize the shopping center just across the street from the mall. That TIF does not include the mall.
The city will also consider an 80% loan guarantee on the price for up to a year, essentially backing up Cullinan Properties as it pursues funding from the Bank of Springfield. According to the city, protections are in the proposed agreement to protect the city if Cullinan defaults on the loan.
"Under the proposed agreement, if the developer defaults, the City may enforce the agreement through legal remedies and, importantly, may obtain title to the property through a deed that would be held in escrow and released upon a default," City Manager Jeff Jurgens said to WGLT in a statement.
"The developer on this project has a strong track record and significant experience with large-scale redevelopment projects, so we do not anticipate a default," he continued.
The two parties will also need to draft and approve a redevelopment agreement. The city anticipates that will take about six months.
Cullinan Properties is purchasing the mall under the name Eastland Mall Redevelopers LLC and has developed several shopping centers in Central Illinois, including the Shoppes at College Hills in Normal, The Levee District in East Peoria, The Shoppes at Grand Prairie in Peoria and East Court Village in Pekin.
The group has also developed several offices, medical facilities and apartments buildings.
