West Dundee closes in on mall ownership; trustees to vote on $7 million agreement
West Dundee is poised to acquire the last piece needed for redevelopment at Spring Hill Mall.
Trustees are expected to vote at their 7:30 p.m. meeting Monday on an agreement to purchase the core of the mall and the movie theater for $7 million. The village expects to close on the mall property in early 2024.
"It is a significant step forward for the Village of West Dundee," Village President Chris Nelson said.
The mall, which is in West Dundee and Carpentersville, has seen declining occupancy rates in recent years with the closure of key anchors like Macy's and Sears. West Dundee recently closed on the former Sears store for $2 million and is expected to close on a deal to buy the shuttered Macy's building for $1.25 million in November.
"We're glad they're moving forward," Carpentersville Village President John Skillman said. Carpentersville officials have said they have no interest in owning any portion of the mall.
West Dundee officials have pursued the purchase of the mall to help spur redevelopment. Officials have said they envision a mixed-use development that includes residential, retail and entertainment.
The village has been in talks for months with Kohan Retail Investment Group to purchase the main portion of the mall and the theater. On Thursday, the New York-based firm said the village was better equipped to usher in the mall's redevelopment.
"The city is going to be able to do 10 times what we'd be able to do," said Mike Kohan, president of Kohan Retail Investment Group. "We're mall people; we're not developers."
He said the remaining tenants in the mall have been switched to month-to-month leases and expects that the mall will remain open through at least the end of the year. The mall purchase does not include the Kohl's store, which is in Carpentersville, Nelson said. Though the Cinemark theater is part of the planned mall purchase, Nelson said he anticipates the theater will remain open.
West Dundee trustees created a new tax increment finance district for the mall to entice developers with property tax money that could be steered into redeveloping the mall. Village officials have said buying up the mall properties would help clear the way for redevelopment. Nelson noted that developers have pointed to the multiple property owners and property restrictions as barriers to redevelopment.
Nelson added the village taking ownership of the property also provides control over what goes on the land.
"It is an element of control so that we can ensure whatever is at the Spring Hill site is something that is desirable and in keeping with the quality of developments we have elsewhere in the community," Nelson said.