Bloomington City Council approves initial steps toward Eastland Mall renovation

BLOOMINGTON, Ill. – The Bloomington City Council unanimously approved three measures advancing the proposed redevelopment of Eastland Mall.

“This is a big deal,” Senior Deputy City Manager Billy Tyus said. “This mall property, Eastland Mall property, is probably the one we get the most interest in and the most complaints about in terms of what’s next and what’s happening there.”

Tyus plans for a feasibility study, a potential tax increment financing (TIF) district and a loan guarantee to help redevelopers purchase the property.

City Manager Jeff Jurgens introduced the presentation by highlighting the potential significance of the project.

“Very happy to have a developer come forward with a lot of experience that is interested,” Jurgens said. “As we’ve said, not just doing a facelift, not just doing a paint job, but actually redeveloping this key property in our community.”

“This is something that’s going to be critical for our community,” Jurgens continued.

Tyus said the Eastland Mall property encompasses approximately 50 acres and is under contract with Eastland Mall Redevelopers LLC, whose parent company is Cullinan Properties.

“Development isn’t planned to be another mall, but here’s the thing: there aren’t a lot of people building malls anymore,” Tyus said.

He described the proposed alternative as “more of an open air retail lifestyle center” where people can eat out, shop, work and enjoy entertainment.

Tyus cautioned that significant work remains before the redevelopment can proceed. The developer has not yet closed on the property, and the potential closing timeline remains uncertain.

The developer believes demolition could begin by fall 2027.

“​​The bulk of the site would is planned to come down in exchange for it being redeveloped into that open retail site,” Tyus said.

The third measure of the three proposed measures proposed a city guarantee covering 80% of a loan from Bank of Springfield for Eastland Mall Redevelopers LLC for 365 days.

Tyus said the arrangement would provide collateral for the purchase rather than require the city to write a check immediately.

He estimated the guarantee could cover approximately $9 million, with a purchase price of around $11.3 million.

Council Member Mollie Ward voiced strong support for the project but said a local labor agreement would be necessary for future approval.

“Congratulations. This is really wonderful,” Ward said. “I am super supportive, super excited, and super grateful for all the hard work that has gone into this.”

Council Member Michael Mosley also voiced support for a local labor agreement asked Tyus to explain what protections would be available if the developer could not repay or refinance the loan within 365 days.

“If there is a default that and that is not made right, that the city can take ownership, take an interest in the property, and again get it to a developer that will be able to redevelop it and meet the terms,” Tyus said.

During public comment, chair of the board of directors for the McLean County Chamber of Commerce Nicole Hoffman voiced the organization’s support for the city’s efforts to redevelop Eastland Mall.

“We appreciate your leadership, and we look forward to the positive impact that this project will have on Bloomington and McLean County for years to come,” Hoffman said.

The Bloomington City Council meets at 6 p.m. on the second and fourth Mondays of each month.