West Dundee trustees approve $7M price for Spring Hill Mall
West Dundee trustees have agreed to spend $7 million to acquire the core of Spring Hill Mall with the hope that it will lead to a redevelopment of the struggling shopping center.
Trustees voted 6-0 to approve a purchase agreement for the mall property on Monday night. Trustee Cheryl Alopogianis did not attend Monday's meeting. The village expects to finalize the deal with New York-based Kohan Retail Investment Group in early 2024.
"The mall has been declining for a number of years," Trustee Tom Price said after the meeting. "This gives us the opportunity to provide some control, to participate in improving the infrastructure and such so that we can facilitate the type of development that we're interested in."
Spring Hill Mall straddles both West Dundee and Carpentersville. In addition to the core part of the mall, the village will acquire the theater and the former Carson Pirie Scott store.
West Dundee recently closed on a deal to buy the former Sears store for $2 million and is expected to close a deal to buy the shuttered Macy's store for $1.25 million in November. Kohl's, which is on the Carpentersville side of the mall, is not part of any purchase agreements.
West Dundee Village President Chris Nelson said the village reached an agreement for the rest of the mall "much sooner" than anticipated.
The village wants to own the mall property to spur its redevelopment. Officials have said they envision a mixed-use development that includes residential, retail and entertainment.
Nearly 80% of the property is in West Dundee. The acquisition would leave West Dundee owning property in Carpentersville.
"We're glad they're moving forward," Carpentersville Village President John Skillman said last week after first learning of the pending agreement. Carpentersville officials have said they have no interest in owning any portion of the mall.
Like other regional malls, Spring Hill Mall's popularity has waned in recent years as large anchors, such as Sears or Macy's, have closed, and online shopping has expanded.
Spring Hill Mall General Manager Denise Richardson said only six national chains - Hibbitt Sports, Bath & Body Works, Sbarro, Journey, Hot Topic and Shoe Encore - have spots in the mall. In all, she said the mall has about 45 tenants.
News of the pending sale surprised at least one mall tenant, who opened shop in July.
Alexandra Godinez said her parents relocated their shop, Dulces Clara, from the Elgin Mall to Spring Hill Mall in July. At the time, they were offered a one-year lease but then switched to a month-to-month lease a short time later.
"We were reassured nothing would happen soon," said Godinez, who manages her family's candy shop.
The family's store is among eight new businesses that have opened inside the Carpentersville side of the mall since May. West Dundee has not issued any occupancy permits for the portion of the mall within its boundaries.
"It's just unfortunate for us to be displaced again," Godinez said. "We've really enjoyed being at Spring Hill Mall."
Carpentersville Village Manager John O'Sullivan noted new mall tenants received information from the village about the potential sale of the mall when they applied for occupancy permits.
Godinez said she and her parents will discuss plans for the business. But she said she was relieved to hear they could remain open through the holidays.
Richardson, who also serves as a Carpentersville village trustee, said she was awaiting direction from Kohan Retail Investment Group regarding a meeting with tenants to discuss the next steps.