West Dundee approves agreement for Spring Hill Mall renovations

Spring Hill Mall is one step closer toward seeing its proposed $37.8 million redevelopment project.

The West Dundee village board unanimously approved a term sheet Monday that outlines the public-private partnership between mall owner Rouse Properties and the villages of West Dundee and Carpentersville.

"This type of investment really helps bring up Spring Hill Mall as a potential destination for new retailers in the mall and in surrounding areas, too," said West Dundee Village Manager Joe Cavallaro.

With a commitment to invest all project costs, Rouse Properties is asking for an $8.6 million municipality contribution, $7.4 million of which will come from West Dundee.

The remaining $1.2 million would be contributed by Carpentersville, whose village board will vote on the term sheet Tuesday.

"We're not fronting any dollars. We're agreeing to reimburse them in future increments," Cavallaro said. "The project needs to be successful in order for them to get that money."

The term sheet commits both municipalities to consider the establishment of a tax increment financing district for Spring Hill Mall. West Dundee trustees also approved agreement with Kane, McKenna and Associates Inc., a Chicago-based financial services firm, to conduct a TIF district eligibility study for that area.

The village has already completed a preliminary analysis and expects the mall to be a feasible area for a new TIF district, Cavallaro said.

Community Development Director Tim Scott said Carpentersville will conduct its own feasibility study.

By approving the term sheet, West Dundee has also entered into a sales tax sharing agreement. Cavallaro said the village is pledging that 70 percent of incremental sales tax revenue will go toward repaying Rouse for 23 years or until the village's $7.4 million contribution is paid off.

"This (term sheet) sets the table and allows the project to move forward," Cavallaro said. "All players understands the major terms."

The preliminary redevelopment plan, which was also approved Monday by West Dundee trustees, includes a new 37,000-square-foot Cinemark movie theater with eight screens, as well as a pavilion that will include destination shopping, restaurants and an outdoor plaza. About 25,000 square feet of existing enclosed mall space will become outward-facing retail stores.

The preliminary plan also includes a new southwest mall entrance, additional parking and the connectivity of a bike path with bike racks.

To make room for the new features, about 250,000 square feet of existing property, including the vacant JCPenney store and the food court, will be demolished.

Rouse Properties representatives will present a final redevelopment plan in early fall, Scott said.