Gurnee approves borrowing $10 million to lure Macy’s
Gurnee trustees have officially approved spending a maximum of $10 million in public money so a Macy’s department store can open in the village.
Plans are for a full-line Macy’s to open at Gurnee Mills in spring 2013. Officials from Gurnee Mills’ parent company, Indianapolis-based Simon Property Group, said construction on the 130,000-square-foot space is expected to start early next year.
At a meeting Monday night, trustees formally voted to borrow the $10 million through issuance of Midwestern Disaster Area Bonds, a low-interest federal program meant to help Illinois counties that sustained flood damage in 2008.
Officials endorsed providing the financial assistance at an informal meeting two weeks ago. Mayor Kristina Kovarik reiterated her support of using public money to help attract a major national retailer.
“Gurnee Mills is an important asset to our village and we have to invest to ensure the future viability of our retail corridor,” Kovarik said. “This project will result in many great benefits, including valuable economic growth, new jobs and further
add to our diverse shopping opportunities.”
Officials said the $10 million will help fund Simon’s demolition of a former Circuit City store and prepare a building pad for the Macy’s, along with interior renovations, tenant relocations and other mall upgrades.
Simon representatives said the overall cost of Gurnee Mills renovations is pegged at $20 million. They said the upgrades would be impossible without public financial assistance.
Village officials said the $10 million debt will be repaid with sales tax revenue. They said such a move is possible because a sales tax-sharing agreement with Gurnee Mills expires Dec. 31, 2012.
Kovarik said Gurnee officials are committed to keeping the village financially strong and economically viable.