June 11—CHAMPAIGN — City officials plan to create a new Tax Increment Financing District to help redevelop several properties — including the Country Fair Shopping Center, which could soon be sold to new owners.
The city council will consider a resolution on this issue today at 6:30 p.m.
The 32-acre Country Fair site, which has been on the market for more than a year, is under contract with a team of investors who are doing their due diligence before closing on the property, Senior Planner for Economic Development TJ Blakeman wrote in report to the council.
“Potential buyers include a team led by The Matanky Realty Group, including Shoora Savire LLC of Nevada and Lanlir LLC of California,” he said.
“During ongoing discussions, the development team has indicated its interest in acquiring and redeveloping the entire site.”
He added that the potential buyers appear very willing to work with the city of Champaign and local developers to incorporate the city’s priorities into the project, including “walkability, quality design, new public streets and circulation patterns, and the reintroduction of public transport to other areas’. development.”
City Manager Dorothy David has approved a cost-sharing agreement to engage an architectural firm to begin work on a conceptual plan for the project.
“This work is expected to begin within the next week,” Blakeman said. The city plans to cover half of the $50,000 design contract to ensure its priorities are incorporated into the concept.
Developers have indicated that redevelopment of the site is not feasible unless the city provides “significant financial support” for the project, city officials said.
To that end, the city plans to establish a TIF to help provide financing.
The proposed resolution, if approved, would allow the city to use funds from the TIF to reimburse certain costs incurred by the city and developer for the Country Fair project prior to the creation of the TIF, Blakeman said. This includes the cost of the design contract.
According to Blakeman, the TIF district would cover approximately 218 acres, including the mall, the Champaign Park Apartments, Country Brook Apartments, Round Barn Shops, Shops at Glenn Park, Schnucks Plaza and the former CS Johnson Factory.
He estimated that the city expects to complete the creation of the TIF between September and November of this year. Multiple public meetings will be held during the TIF adoption process with opportunities for input.
The mall’s redevelopment during the early years of the TIF will help generate growth that can be reinvested in this location and others in the neighborhood, Blakeman said.
“The Country Fair Shopping Center opened in 1959 as Champaign’s first suburban shopping center, located on the far western edge of the city at the intersection of Illinois Route 10 (Springfield Avenue) and Mattis Avenue,” he said. “Country Fair features two large commercial buildings surrounded by four developed lots.”
The combined square footage of the two main buildings is just over 300,000 square feet, and there are more than 2,000 parking spaces between them. According to Blakeman, about 30 percent of the center is currently vacant.
Country Fair is currently owned by GMS Management, which put the property up for sale in September 2022.
“Since 1985, the property has continued to decline in value,” Blakeman said. “The property’s equated assessed value has fallen from $6.6 million (adjusted for inflation) in 1986 to just $997,330 in 2023. Although the center has struggled to maintain full occupancy for decades, Country’s location Fair well positioned for redevelopment.”
“Obviously there are a lot of vacant tenants in the mall,” said Ian Dennehy, owner of Champaign Gymnastics Academy. “So I think a fuller, more vibrant scene would be good for everyone in the community.”
CGA has been located in Country Fair since its founding in 2012. Dennehy said that while the mall has been a great location, staff is excited about the possibility of new owners who could make some “meaningful improvements” to the location.
“We would be happy to stay at the site if there are improvements to the area,” he said.
Assuming the council approves the resolution tonight, city staff will work with developers and the design team to create a conceptual plan for the mall, Blakeman said. They would then negotiate a development agreement and determine how much the city would invest in the project, with the council reviewing a draft of the contract during a study session.
The city plans to have the majority of its investments in the project come from TIF funds and is willing to share up to 50 percent of the new district’s revenues with the project.
“It is important to note that city staff has been in contact with other property owners in the proposed TIF boundary who are also interested in redeveloping other larger properties outside of the Country Fair Shopping Center,” Blakeman added. “Should their projects move forward before the start of the TIF later this year, additional solutions can be sought for those projects as well.”
City staff have been working with the Country Fair development team and other property owners in the area for more than six months, he said.
