The prospective buyer of the vacant St. Charles Mall has backed away from efforts to develop the property, which now is slated to be sold in a sealed-bid auction in October.
Tri-Land Properties Inc. of Westchester had negotiated a purchase contract for the mall on the city’s west side, but apparently was unable to secure the tenants it needed.
“It’s not unusual,” said Mayor Fred Norris. “We had the same problem with the old plant that became the Piano Factory.”
Norris noted that covenants on the property prohibit some commercial uses such as groceries. Those restrictions also hindered two previous attempts at improvements, he said. However, he said he remains hopeful the mall can be successfully redeveloped.
“We will listen to almost any type of proposal,” he said, adding that the city would be willing to consider a tax increment financing district or other incentives to help the eventual buyer develop the property.
While a TIF district, which the city has never created before, is a possibility, any incentives would have to be comparable with those offered by other area towns, Norris said.
“The city is anxious to do whatever has to be done, but we’re not going to be ridiculous,” he said.
Tri-Land had unveiled a $17 million redevelopment plan that called for a strip mall with off-price and specialty retailers. The company had sought a 50 percent rebate of city sales tax revenues to help the project get up and running.
The 257,000-square-foot mall fell into receivership several years ago, then passed into the hands of a trio of real estate and insurance companies. It appeared to be on the brink of redevelopment in 1994, but the plan fell through and the prospective buyers walked away.
