Bloomington Council Weighs $11.3M Deal to Rebuild Vacant Eastland Mall

Key points

• Cullinan Properties, an East Peoria-based developer, is under contract to purchase the entire 53-acre Eastland Mall site for $11.3 million, with a potential closing as early as November.
• The Bloomington City Council is considering establishing a tax increment financing (TIF) district for the property, which would provide tax rebates and other assistance to the developer, and approving an 80% loan guarantee to speed up loan processing from the Bank of Springfield.
• The redevelopment plan 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.
• The city anticipates a comprehensive transformation of the Eastland Mall site, which has been largely vacant for years, with the current owner, CBL Properties of Tennessee, attributing the decline in mall traffic to a rise in online shopping.
• A redevelopment agreement between the city and Cullinan Properties is expected to take about six months to draft and approve, with protections in place to protect the city if the developer defaults on the loan.

Background

Eastland Mall has been largely vacant for years, with its current owner, CBL Properties of Tennessee, attributing the decline in mall traffic to a rise in online shopping. The Bloomington City Council is now considering several items to boost redevelopment of the mall, including a TIF district and a loan guarantee, as part of a broader effort to revitalize the area. The existing Empire Street Corridor TIF district has helped revitalize the shopping center just across the street from the mall, but does not include the mall itself.

Why it matters

The potential redevelopment of Eastland Mall could significantly impact the local economy and urban landscape in Bloomington, providing a modern retail and mixed-use destination in place of a largely vacant mall. The city's support through a TIF district and loan guarantee could help facilitate the redevelopment, while also providing protections in case of default. The project could also serve as a model for other cities looking to revitalize similar properties.

What to watch

The Bloomington City Council is expected to vote on the TIF district and loan guarantee at its October 26 meeting. If approved, PGAV Planners LLC will conduct a study on whether the property should qualify for a TIF district. The city and Cullinan Properties will also need to draft and approve a redevelopment agreement, which is expected to take about six months. The deal could close as early as November, with the redevelopment process following thereafter.