Southridge Mall's $52.5 million redevelopment plan, including the possible addition of Macy's department store, will include $16 million from the Village of Greendale.
The Village Board voted 7-0 to approve the financing help for Southridge owner Simon Property Group Inc. The proposal, unveiled less than six weeks ago, previously was approved by the Community Development Authority and Plan Commission.
Indianapolis-based Simon plans to make renovations at the mall and develop new commercial buildings.
Neither village officials nor Simon executives have named prospective new tenants for Southridge, which was built in 1970 and has 1.2 million square feet.
However, Village Manager Todd Michaels says Simon is close to reaching a lease agreement with an anchor tenant for the former Younkers space.
That anchor, which commercial real estate sources say is Macy's, could be operating by Thanksgiving 2011, said Alan Marcuvitz, the Community Development Authority's attorney.
Southridge has a large vacancy in the former Younkers space. Part of that 210,000-square-foot space was filled in 2005 with three retailers, but two of the stores - Linens 'n Things and Steve & Barry's - closed in recent years.
Southridge's anchors are Kohl's, Sears, J.C. Penney and Boston Store. Last week, Kohl's disclosed plans to remodel its store.
The Village Board on Tuesday night approved a 25.5-acre tax incremental financing district for the Southridge site. The total estimated costs for the village will be $15.85 million, including $10 million provided to Simon, and $5 million in interest expenses for borrowing the money.
All the village's costs will be paid back within an estimated 15 years by property taxes on the improvements at Southridge, which will total $52.5 million.
The money spent by Greendale will help improve Southridge, assuring it continues to be the village's largest property taxpayer, said John Hermes, village president.
If Southridge's property value declines, the property tax burden on Greendale homeowners would grow, he said. Hermes said the vote to approve the district is a first step to revitalizing the entire S. 76th St. retail corridor.
"This is truly a big day in our community," Hermes said.
The tax district still needs approval from the Joint Review Board, which includes representatives from all local governments affected by the district. Such board approvals routinely occur after approval by a village board or common council.
The Joint Review Board meets at 9 a.m. Wednesday.
In a related move, Patrick Basche, manager at Bay Park Square Mall in Green Bay, has been named manager at Southridge.
Basche is in transition now, running both malls until a replacement for him is named in Green Bay. Both malls are operated by Simon. Basche succeeds Mary Wenger at Southridge.
Doris Hajewski of the Journal Sentinel staff contributed to this report.
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