West Dundee to own part of Spring Hill Mall

The village of West Dundee will soon own a piece of Spring Hill Mall.

Trustees Monday unanimously approved an ordinance to purchase the former Macy’s building. The village will pay $1.25 million for the 123,000-square-foot building and the 8.6 acres it sits on at the mall. The village expects to close on the property, owned by Macy’s, in June.

“I think it’s a good decision we’re making,” West Dundee Trustee Andy Yuscka said. “We’re taking an active role in the future of the mall.”

In a news release Thursday, Village President Chris Nelson said one of the hindrances to the mall’s redevelopment is the multiple property owners and various covenants on the property.

We just don’t think retail is the future there.

—  Village President Chris Nelson

“Almost uniformly, each developer with whom we spoke stated that the site has too many complications ­– too many owners, too many covenants, too many uncertainties,” he said. “The village’s aim is to bring simplicity to the process so reliable developers with established track records will be interested in partnering to reformat the area. Without municipal intervention, that simply won’t happen.”

Nelson said the village wants redevelopment of the property but does not favor simply filling mall space to fill space. He anticipates that the Macy’s building will eventually be demolished.

“We just don’t think retail is the future there,” he said.

Village officials envision a mixed-use development with residential, entertainment and some retail. Earlier this year, trustees approved a new and expanded tax increment finance district to help entice developers to the property.

Nelson acknowledged having the village take ownership of mall property can be risky. But he said leaving the mall stagnate is a greater risk.

Including Macy’s, four different companies own property at the mall. The largest portion, which includes the interior of the mall and the Carson Pirie Scott building, is owned by New York-based Kohan Retail Investment Group.

Of the mall’s anchors, only Kohl’s and Cinemark Theater remain open. Carson Pirie Scott, Macy’s, Sears and Barnes & Noble have all closed in recent years.

Village officials estimate the mall’s occupancy rate at about 25%.

The mall’s manager declined to confirm the mall’s occupancy rate and referred calls to the mall’s ownership at Kohan Retail Investment Group. When reached, a representative for Kohan deferred comment to a later date.

https://www.dailyherald.com/business/20230502/west-dundee-to-own-part-of-spring-hill-mall