Bloomington’s city council on Monday unanimously approved a series of ordinances designed to help an East Peoria developer revamp the Eastland Mall property.
Cullinan Properties is currently under contract to purchase the 53-acre site for $11.3 million. City staff said the deal could close between November and January.
“This is moving really, really fast,” said Deputy City Manager Billy Tyus, explaining that as the driving force behind the ordinances.
He also shared some excitement for the potential of the mall site, saying the bulk of the structure would come down to create an open-air retail space.
“More of an open-air retail lifestyle center,” Tyus said. “If approved, that’s what you’re going to see at this site.”
Tyus said some demolition may happen by fall 2027.
The two parties will need to draft and approve a redevelopment agreement. The city anticipates that will take about six months.
Council member Mollie Ward said any agreement should include a project labor agreement with local unions, which drew scattered applause from union representatives in attendance.
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.
Backing up the loan
One of the measures passed by council includes putting up an 80% loan guarantee for the developer as it seeks to secure funding for the purchase.
The loan guarantee does not mean the city is footing 80% of the bill. Rather, it is essentially backing up Cullinan and providing collateral as it seeks funding from the Bank of Springfield.
The guarantee would expire after a year, and Cullinan must refinance or remove the city as a guarantor within that time frame.
City Manager Jeff Jurgens said there are protections in place in the agreement that prevent the city from paying the mortgage if Cullinan defaults on the loan. The deed to the land will be held in an escrow account and given to the city if the developer defaults.
The agreement also states Cullinan must approach the city with a redevelopment plan and agreement within 180 days of the deal closing. Those plans would need to be approved by the council, and possibly the city’s planning commission depending on if any variances in code are requested.
First step in creating a TIF district
The council also approved a contract with PGAV Planners LLC to determine if the Eastland Mall property qualifies to become a tax increment financing district [TIF]. That is expected to cost around $30,000.
A TIF district allows a portion of property tax revenue generated by the area to be reimbursed to developers working within the district on certain qualified expenses. It is used by municipalities to entice developers to take on projects in rundown areas.
According to memos from city staff, seeking out the TIF distinction also may be a way to reimburse part of the $11.3 million purchase price.
“Property acquisition is a TIF-eligible reimbursable expense, and the property acquisition costs are high,” states a staff memo to the council. “The inducement resolution makes those costs eligible if a TIF is established even though the expenditure occurs before establishment.”
TIF funds also could also offset the costs of demolition and site preparation, according to staff. The council approved a resolution declaring the city’s intent to reimburse some of Cullinan's expenses ahead of the TIF district study.
“We know that the project likely would not happen 'but for' the establishment of a TIF District in the future,” according to the memo.
The study does not guarantee the creation of a TIF district. The council would still need to create one with a separate vote.
If the TIF district is feasible, the city plans to take a vote to establish one from January to April 2027, depending on when the study is complete.
Other business
Also Monday, the council unanimously agreed to pursue negotiations with Champaign-based Royse and Brinkmeyer to develop two properties at 801 and 807 N. Main St.
At its last Committee of the Whole meeting, Royse and Brinkmeyer CEO Colin Carlier proposed building about 140 to 160 units in some combination of studio, loft, one-, two- and three-bedroom apartments. The property management company manages more than 1,000 apartments in Champaign.
Ward amended the proposal to include language calling for the city to negotiate project labor agreements.
“It is essential that we support our local employees ... and give them the opportunities to, as much as possible, do work in our community,” she said.
Council member Sheila Montney was the only "no" vote on the amendment. She took issue with how the wording of the amendment seems opposed to city code.
“As proposed, this stands to substantially increase the construction cost,” she said.
Corporate Counsel Chris Spanos disagreed with Montney’s reading, and said the amendment would be legal.
The Franklin Park Foundation also presented a plan for the property. During public comment, foundation president Tim Maurer encouraged the council to negotiate with the foundation alongside Royse and Brinkmeyer, instead of moving forward with just one proposal.
Other items decided by the council:
- On the consent agenda, the council approved working with the Farnsworth Group, Inc. to study the city’s water supply and its safe yield amount. Another measure passed on the consent agenda approved working with the Illinois State Water Survey on the same project. The studies will cost about $430,000 and are accounted for in the FY2027 budget.
- Approved a Class RAS liquor license for Pop Up Hot Chicken at 40 N. Hershey Road.
