An East Peoria developer has agreed to buy Bloomington’s largely vacant Eastland Mall site for $11.3 million, opening the door to a significant redevelopment. The city says the 53-acre property could become an outdoor retail and mixed-use destination, potentially replacing most of the enclosed mall. City officials are considering financing and planning steps to support the project.
Key takeaways
- Cullinan Properties is under contract to purchase the entire Eastland Mall site through Eastland Mall Redevelopers LLC.
- The city anticipates demolition of the enclosed mall, while retaining Kohl’s and other viable outparcels.
- Bloomington officials are considering a study of a new tax increment financing district and a temporary loan guarantee.
A new direction for the mall site
The city announced the pending sale Friday. The deal could close as early as November, though the parties still need to complete the transaction and develop a formal redevelopment agreement. The city estimates that drafting and approving that agreement will take about six months.
The mall has been mostly vacant for years. Its current owner, Tennessee-based CBL Properties, has cited the growth of online shopping as a factor in declining mall traffic in past property tax appeals. CBRE marketed the property for sale over the summer as a redevelopment opportunity.
Bloomington expects the site’s future to include a modern outdoor retail and mixed-use development. The city’s preliminary vision calls for removing the existing enclosed mall while keeping Kohl’s and other outparcels that remain viable. No detailed project plan or construction schedule was provided in the announcement.
City weighs financing and planning measures
At its Oct. 26 meeting, the Bloomington City Council is scheduled to consider commissioning a study of whether the property qualifies for a tax increment financing district. If approved, PGAV Planners LLC would conduct the study. Establishing a TIF district would require a separate council vote; the tool can provide tax rebates and other assistance to support redevelopment.
The council is also set to consider guaranteeing 80% of the purchase price for up to one year as Cullinan seeks financing from the Bank of Springfield. The city says the proposed agreement includes protections in case the developer defaults, including an escrowed deed that could allow the city to obtain title to the property. City Manager Jeff Jurgens said the city does not anticipate a default, citing the developer’s experience with large projects.
Developer’s regional portfolio
Cullinan Properties has developed shopping centers across 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. Its work also includes office, medical and apartment projects.
The existing Empire Street Corridor TIF district has supported redevelopment at a shopping center across the street from Eastland Mall, but it does not cover the mall property. Any new district for Eastland would need to be evaluated and approved separately.
