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Stratford Square owner asks to extend extra 1% sales tax to help fund work

The company that owns Stratford Square Mall is looking to spend nearly $50 million over the next four years as part of its effort to improve the Bloomingdale facility.

So village officials are considering a proposal that would allow StreetMac LLC to recoup some of that investment through an existing 1 percent sales tax on all purchases made at Stratford Square.

Bloomingdale has had a business district sales tax for Stratford for nearly a decade. Last year, the business district generated roughly $1 million. Almost all the money collected from the extra 1 percent sales tax goes to the mall's owner to help cover the cost of improvements.

But there's a limit on how much money can be paid out before the tax ends in 2030. Since the tax was implemented, the village has paid roughly $11.3 million; the total cap is $20 million.

StreetMac has asked the village to increase the cap to $35 million. If the request is approved, it would give StreetMac the opportunity to recoup up to $15 million of the $49.6 million it plans to spend to improve the mall.

"We're going to be committing a lot of capital to the mall," said Anthony Giannini, StreetMac's chief operating officer. "The hopes are that it will drive sales. And from that sales increase, we will be able to recoup a portion of our investment."

The improvements are expected to be completed by 2021. If Stratford flourishes, Giannini said the village also will benefit because it will receive more revenue from the standard sales tax collected at the mall.

Village President Franco Coladipietro said Bloomingdale officials have been talking for months with StreetMac about the possibility of increasing the cap if the company agrees to invest additional money into the mall.

But a final decision hasn't been made.

"We are just beginning conversations with them," Coladipietro said. "It's really just a discussion at this point."

Mall officials have been meeting with village trustees individually to bring them up to speed on the improvements that already have been made.

StreetMac, which acquired the 1.3 million-square-foot mall more than three years ago, last fall started a multimillion-dollar renovation and tenant improvement project that includes interior and exterior upgrades. As a result, a new Harley-Davidson apparel store is slated to open next month, and a new brewery is expected to open around Thanksgiving.

But Coladipietro said the closing of Macy's earlier this year is significant.

"We're at a crossroads with the mall," Coladipietro said.

Giannini said he's optimistic about Stratford's future. "We've got some great things under construction today and a lot of great things that are in the works," he said.

He said StreetMac is planning to attract new retail, entertainment and restaurants.

"It will keep a significant asset for the village prosperous for years to come," Giannini said.

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