The Bloomington City Council will consider several items to spur redevelopment of the Eastland Mall, as an East Peoria developer is under contract to purchase the property.
The city announced in a news release Friday that East Peoria-based Cullinan Properties signed a contract to purchase the entire 53-acre site for $11.3 million. According to the city, the deal could close as soon as November.
Global real estate firm CBRE put the mall up for sale throughout the summer, touting it as a redevelopment opportunity.
“The city is planning a complete transformation of the Eastland Mall site,” the city said in a statement.
“This likely includes demolishing the existing enclosed mall structure, while retaining Kohl’s and other viable parcels, and replacing the current mall structure with modern outdoor retail and a mixed-use destination.”
Most of the mall has been vacant for years. In property tax appeals filed over the years, the mall’s current owner, CBL Properties of Tennessee, has attributed the mall’s declining traffic to an increase in online shopping.
Emilie Bollinger
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WLT file
Plans for the next meeting on Oct. 26 include a study on creating a tax increment financing district for the property and approval of a loan guarantee that would expedite loan processing.
If approved, PGAV Planners LLC would conduct a study to determine whether the property should qualify for a TIF district, which would provide tax abatements and other assistance to the developer. Creating a TIF district would require a separate council vote.
The existing Empire Street Corridor Tax Increment Financing (TIF) district, for example, has helped revitalize the shopping center directly across the street from the mall. This TIF does not include the shopping center.
The city will also consider an 80 percent on-price loan guarantee for up to one year, essentially supporting Cullinan Properties in its pursuit of financing from the Bank of Springfield. According to the city, protections are included in the proposed agreement to protect the city if Cullinan does not repay the loan.
“Under the proposed agreement, if the developer defaults, the city can enforce the agreement through legal remedies and, importantly, can obtain title to the property through a deed that would be held in escrow and released in the event of default,” City Manager Jeff Jurgens told WGLT in a statement.
“The developer of this project has a strong track record and significant experience with large-scale redevelopment projects, so we do not anticipate default,” he continued.
Both parties will also need to draft and approve a redevelopment agreement. The city expects it to 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 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 office buildings, medical establishments and residential properties.
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