Vernon Hills mall upgrade may finally happen

As the holiday shopping season gets under way, Vernon Hills officials are still waiting for a big gift promised them three years ago.

But unlike the last few years when they received the equivalent of a lump of coal from the owners of Westfield Hawthorn mall, they are hopeful some type of package will be forthcoming.

It won't be the $110 million expansion and renovation publicly proposed three years ago. Given the economy and a downward trend in the village's largest economic asset, even a scaled-down plan will be welcome, however.

"For us, it's been the struggle with the lack of decision-making and apparent direction," said John Kalmar, assistant village manager. "We're now getting every indication Westfield is intending to do something."

Australia-based Westfield purchased the former Hawthorn Center in 2002. The company, which has an interest in 119 shopping centers, is known for buying malls and making upgrades.

Two weeks ago, for example, Westfield Group announced the completion of five major development projects in four countries totaling $1.5 billion. In the U.S., the company spent $160 million on its mall in Annapolis, Md.

Shortly after Westfield acquired Hawthorn, village officials talked about expanding it to include more upscale offerings. Though the village has a large retail base that perennially generates more than $1 billion in sales, leaders were becoming concerned that its economic centerpiece keep pace.

In late 2004, Westfield officials unveiled a plan to expand the mall from 1.2 million to 1.6 million square feet. A new outdoor lifestyle center, expanded parking, futuristic food court, 14-screen theater and other amenities were proposed.

That's as far as it went, however, prompting Mayor Roger Byrne last fall to contact top Westfield executives in Los Angeles. In a lengthy letter, Byrne said Westfield was not meeting a demand for better-quality merchandise, despite growth in the trade area.

The mall's position in the market continued to erode, he added, thinned by increased competition from projects in Lincolnshire, Deer Park and other towns.

In a rare move, Vernon Hills offered to raise the sales tax and give the proceeds to Westfield for improvements.

Kalmar said it now appears the company will pursue some improvements, although the extent is unknown.

"It appears they are quite serious about that now," he said.

Westfield declined to discuss specifics. But its development team is "actively engaged" in meetings with the village and potential tenants and in evaluating other opportunities, according to Katy Dickey, executive vice president of communications.

"It's Westfield's philosophy and practice to constantly look for ways to reinvest in and improve our centers to keep them vital, vibrant, appealing and relevant for consumers," she said.

Kalmar said he hoped to have a proposal by late next month or early next year.