City Backs $11M Eastland Mall Redevelopment
Bloomington is providing loan collateral to help redevelop the 53-acre site, a process expected to take several years.
Updated on Oct. 30, 2026 in Commercial
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Cullinan Properties entered a purchase agreement in September to acquire the 53-acre Eastland Mall site for $11.3 million. The project, which includes city-backed loan collateral, aims to redevelop the property, though the Kohl's anchor store will remain in place.
Why it matters
The city is backing the deal with 80% loan collateral and plans to establish a tax increment financing district to support redevelopment costs. This initiative aims to address the transition of the property after current owner CBL Properties moves to remove the site from its financial records.
The $11.3 million acquisition covers the entire 53-acre footprint of the Eastland Mall site. The city is currently committed to providing 80% collateral on the developer's loan to facilitate the transaction.
The players
Cullinan Properties
The commercial real estate developer managing the acquisition and planned redevelopment of the Eastland Mall site.
CBL Properties
The current mall owner seeking to divest the property and remove it from its financial records.
Kohl's
The national department store chain that will maintain its existing location on the mall property.
Bloomington City Council
The local governing body that approved development measures and authorized city collateral for the project.
The details
Bloomington officials plan to create a tax increment financing (TIF) district, which will eventually reimburse the developer for costs using future property tax revenue. This mechanism relies on the city covering 80% of the developer's loan risk to enable the project. While the mall itself is slated for future demolition, the Kohl's location is expected to continue operations as an anchor store.
Timeline
September 2026: Cullinan Properties entered a purchase agreement with CBL Properties.
October 26, 2026: City council approved measures to facilitate the redevelopment project.
November 2026 - January 2027: The property sale could close.
Fall 2027: Demolition of the mall could begin.
January - April 2027: The city intends to vote on the new tax increment financing district.
Money Landscape
This development follows the standard model of using a tax increment financing district to incentivize private investment in underutilized commercial land. It marks a shift from the property's current status as an aging retail asset toward a new redevelopment cycle backed by city resources.
Residents should monitor public hearing notices regarding the future tax increment financing district, as these can influence municipal budget priorities. Homeowners and local taxpayers may want to consult with a financial professional to understand how local TIF districts potentially affect future area property tax levies.
The takeaway
The transition of this property is now supported by 80% city-backed loan collateral to ensure project viability. Readers should keep an eye on upcoming council votes in early 2027 to see how the finalized TIF boundaries could influence the local economic climate.
What happens next
The city council is scheduled to vote on the tax increment financing district between January and April 2027.
Further reading
Learn more about local business trends at Commercial.
Source note: This article includes information reported by Wglt.
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