Bloomington's Eastland Mall, mostly empty for years, could lose most of its enclosed structure under an $11.3 million deal that could close as soon as this November. East Peoria-based Cullinan Properties is under contract to buy the entire 53-acre site, with plans pointing toward an open-air retail and mixed-use destination in place of the shuttered mall corridors.
The purchase agreement, which Cullinan entered with current owner CBL Properties of Tennessee in September, could close between November 2026 and January 2027, according to WGLT. City officials have said the Memphis-based company wants the Tennessee-based mall off its books by the end of 2026, per Bloomington City Manager Jeff Jurgens, which has compressed the usual due-diligence timeline. Jurgens has said there's been little time for due diligence or an appraisal given how quickly the deal has moved.
What Happens to the Mall Structure
City staff anticipate that, if approved, the buyer would demolish most of Eastland Mall, with Kohl's expected to continue occupying one of the property's anchor stores, according to the city. Planet Fitness is a current mall business, and Ulta could move into a future out lot. As reported by wglt.org, the proposal, if approved, would likely involve demolition of the existing enclosed mall structure while retaining Kohl's and other viable outparcels, replacing the current mall with a modern outdoor retail and mixed-use destination.
Some demolition could begin by fall 2027, though the city currently has no official plans finalized for the site. Jurgens has said existing businesses may relocate elsewhere in the redevelopment, and he expects the area to be mostly retail and office space. He does not expect housing to be part of the redevelopment.
Financing and the Road to a Redevelopment Deal
Bloomington's City Council unanimously approved three resolutions this week aimed at advancing the acquisition and redevelopment of the property, per pantagraph.com. Among the measures, the city agreed to put up an 80% loan guarantee for Cullinan that expires after one year. The council also began the process of establishing a tax increment financing district for the area, approving a resolution declaring intent to reimburse Cullinan for property acquisition and other development costs through that mechanism.
A TIF district uses a portion of tax revenue generated within its boundaries to reimburse developers for certain costs. The site currently is not in a TIF district — the existing Empire Street Corridor TIF does not cover the mall. The city hired PGAV Planners LLC to study whether the property even qualifies, at an estimated cost of $30,000, and intends to vote on formally establishing the district sometime between January and April 2027.
Notably, a bank branch already under construction nearby has been excluded from the outlined TIF boundaries. Jurgens has said that's because the city believes the branch developer doesn't need TIF funds, and he noted CBL Properties did not express interest in a TIF incentive for the broader redevelopment.
What Still Needs City Approval
None of this is finalized. There is no official redevelopment agreement in place yet, and Cullinan has not closed its purchase of the mall. Once the sale does close, Cullinan must present a redevelopment plan within six months, and the City Council must still approve both that redevelopment agreement — detailing the specific benefits offered to the developer — and the establishment of the TIF district itself. City officials have said a finalized redevelopment agreement could arrive sometime between May and July 2027.
Bloomington Deputy City Manager Billy Tyus has said Eastland Mall generates more community interest and complaints than almost any other property in the city, and that the project is moving relatively fast by municipal standards. Tyus has also noted that new retail development commonly takes the open-air form Cullinan is pursuing, a shift also visible at properties like Niles' Golf Mill, where plans call for a mixed-use town center retaining some anchors alongside new retail, entertainment and residential uses, according to the Chicago Sun-Times.
A Developer With Local Track Record
Cullinan Properties has already reshaped retail elsewhere in Central Illinois, having developed the Shoppes at College Hills in Normal, The Levee District in East Peoria, The Shoppes at Grand Prairie in Peoria, and East Court Village in Pekin. The Shoppes at College Hills, a 450,000-square-foot open-air lifestyle center anchored by Von Maur, Target and Hobby Lobby, according to Cullinan Properties.
The Levee District, another Cullinan project, is a 137,304-square-foot open-air retail power center developed in 2013 that was 94% leased when it sold for $21.05 million last year, per JLL. Eastland Mall went up for sale over the summer, and its decline tracks a broader pattern seen across traditional malls: CBL Properties attributed the decline in mall traffic to a rise in online shopping in property-tax appeal filings, as reported by wcbu.org.
