The Bloomington City Council will consider financial assistance and initial steps toward creating a Tax Increment Financing (TIF) district for the redevelopment of the 53-acre Eastland Mall property at its October 26 meeting.
Eastland Mall Redevelopers, LLC, whose parent company is East Peoria-based Cullinan Properties, is under contract to purchase the property for $11.3 million. The sale could close as early as November.
The proposed redevelopment could include demolishing the existing enclosed mall while retaining Kohl’s and other viable outbuildings. The site could be transformed into a modern outdoor retail and mixed-use development featuring shopping, dining, entertainment and other commercial uses.
Mayor Dan Brady said the city is encouraged that an experienced developer is interested in reinvesting in the property, which has been an important part of Bloomington for generations.
Council members will consider a resolution supporting the potential creation of a TIF district and authorization for PGAV Planners, LLC, to conduct a feasibility study. The study would determine whether the property qualifies for the designation and whether TIF financing could help cover costs associated with demolition, aging infrastructure and site preparation.
Approval would not establish a TIF district.
The council will also consider an 80% loan guarantee on the $11.3 million purchase price for up to 12 months. The guarantee would help the developer secure financing through Bank of Springfield, with no upfront cost to the city. The proposed agreement includes protections for Bloomington in the event of a loan default.
The arrangement would also give the city and developer time to negotiate a formal redevelopment agreement, with approximately 180 days anticipated for discussions about the project’s scope, financing and timeline.
City Manager Jeff Jurgens said Monday’s proposed actions would be an initial step toward turning the redevelopment concept into reality after years of uncertainty surrounding the property.
Approval would not constitute final approval of a redevelopment plan but would allow the city and prospective developer to continue working toward the project.
