Polishing Gurnee's jewel

One of Illinois' top tourist attractions -- and Gurnee's prime economic engine -- might be in line for major plastic surgery.

Gurnee Mills' outlet stores have been a stop for millions of bargain hunters annually since debuting in 1991. The mall was a pioneer in the Chicago region, with followers including Prime Outlets Huntley in 1994 and Chicago Premium Outlets in Aurora in 2004.

But today's shoppers want an experience, not just good deals.

Retail experts say the advent of "lifestyle centers," such as ones in Schaumburg, Algonquin, Deer Park and Geneva offering a mix of shopping, dining and entertainment, mean Gurnee Mills needs more than outlet stores to be worth the trip.

Moreover, they say, consumers willing to drive a distance to Gurnee Mills in an era of $3.25-a-gallon-plus gasoline now demand options so they can take a break from shopping during what would be a full-day outing.

To keep up with the times, the mall plans to evolve from being strictly an indoor mall with bargain outlet shopping. Gurnee Mayor Kristina Kovarik said it's hoped construction would take 18 months to two years.

"The mall looks outdated," she said. "It looks like it's from the '90s."

Upscale stores, restaurants, entertainment venues, creation of outdoor green areas with benches and a new parking configuration would be part of the new look, according to preliminary ideas described to Gurnee officials.

Kovarik said she and Village Administrator James Hayner are to meet in private Monday with executives from the mall's parent company, Simon Property Group Inc., to review the proposal. If all goes well, she said, plans would move through the village's public approval process.

Some bells and whistles are in order, says George Rosenbaum, an analyst at Chicago-based retail research firm Leo J. Shapiro and Associates Inc. He said that without a revamp, it's more and more difficult for the mall to attract visitors for a long day of shopping.

Gurnee Mills draws from a 50-mile radius, he said. He said blending traditional outlet stores, high-end shops and trendy eateries in an indoor mall and the outdoor lifestyle center concept would keep Gurnee Mills on the tourist map, Rosenbaum said.

"This is right on the mark," he said when told of the tentative plans. "Gurnee (Mills) can only prosper if it is a landmark property and if it continues to have drawing power from the whole metropolitan area."

Shoppers are getting used to the easy parking and enticing settings of lifestyle centers, so Gurnee Mills no longer can rely on just the outlet stores, Rosenbaum said. And keeping shoppers for several hours is more vital for Gurnee Mills, because it's more of a long-distance draw than Chicago Premium Outlets in Aurora, he said.

Kovarik said she hopes Gurnee Mills winds up with the restaurant and entertainment elements seen at Streets of Woodfield in Schaumburg and Simon Property Group's St. Johns Town Center in Jacksonville, Fla.

Streets of Woodfield occupants include Maggiano's Little Italy and GameWorks. The upscale Cantina Laredo Mexican restaurant and Mitchell's Fish Market are part of St. Johns Town Center.

Gurnee Mills' financial scope goes beyond the village's borders. The mammoth mall benefits Illinois in general because about 50 percent of its 22 million annual visitors come from out of town, said Maureen Riedy, president of the Lake County Convention and Visitors Bureau.

It's one of the top tourist attractions in Illinois, she said. Specific rankings are not compiled by the state.

"We are excited about the prospect of new stores coming to Gurnee Mills, which will help generate additional visitor interest and pump more dollars into the local economy," Riedy said.

Sales tax is Gurnee's main income source, accounting for 54 percent of the village's estimated $32 million in general fund revenue for the fiscal year ending April 30. A state and village sales tax is applied in Gurnee.

Gurnee, with a population of slightly more than 30,000, generated $547 in state sales tax per resident last year, according to the Illinois comptroller's office. That beat Buffalo Grove, Wheeling, Vernon Hills and six other comparable suburbs listed in Gurnee's 2008-09 proposed budget.

Kovarik said a refreshed Gurnee Mills would allow the village to retain or boost its sales tax revenue, which is projected to be flat in the next year. Gurnee Mills' income is especially important, she said, because the village doesn't levy a property tax.

"We can't get left behind," she said. "We built the community on the whims of consumer shopping."

Simon Property Group spokesman Les Morris didn't delve into specifics, but issued a statement Friday saying the company is "laser-focused" on improving Mills Corp. malls it acquired about a year ago. He said Simon is encouraged about the renovation possibilities at Gurnee Mills.

"At this time, we are actively engaged in a due diligence for possible improvements, including a lifestyle expansion to the current retail mix," Morris said. "Although we don't have specific plans to share at this point, preliminary interest among the retail community has been very strong."

In a letter this month to Gurnee officials, Simon Property Group Executive Vice President for Development Gregg Goodman outlined plans to demolish space occupied by VF Factory Outlet so a 30,462-square-foot space can be created for Neiman Marcus Last Call Clearance Center. VF would move to 22,914 square feet elsewhere in Gurnee Mills.

About Gurnee Mills

• Opened in 1991

• Receives an average of 22 million annual visitors

• One of Illinois' top tourist attractions

• Covers about two miles from one end to the other

Source: Daily Herald research