A Chicago area developer has purchased one of the largest retail sites in north central Indiana.
Mayor Dave Kitchell announced Friday afternoon that the closing on the Logansport Mall purchase will be in mid-December. The purchase price was not disclosed. The developer is purchasing the property from its long-time owner, Algonquin State Bank in Algonquin, Ill.
Plans call for the demolition of the eastern portion of the mall which had been occupied by J.C. Penney until its closing in recent years. That area has been identified by a hotel developer for the location of a national brand name hotel. A representative of the hotel ownership group met with local officials and the developer earlier this month at the mall site to discuss the project.
Existing mall tenants are expected to remain and the developer has one major tenant new to the community and is in the process of securing other tenants.
“It has been a long road to this day for the Logansport Mall and those who have invested in properties around it or near it,” Mayor Kitchell said. “This developer is the fourth potential owner we’ve worked with in four years, and getting to this stage would not have happened without the cooperation of many people not only at Algonquin State Bank, but here in the community.”
In the past year, the city has actively addressed environmental issues on the site, including any asbestos, storage tanks or other materials that would add to development costs. CLEDO President Bill Cuppy has been actively involved in the negotiations as has City/County Plan Director Arin Shaver who is leading a hotel study for the project.
Kitchell said it has been a difficult time for the retail industry as online sales have led to a record number of store closures this year, eclipsing the previous record set in 2018. Many of the original mall stores are among retailers that have closed stores or gone out of business entirely. Among them are Sears, Penney’s and Woolworth’s. He said the impact of the sale will likely stimulate more customers for east end businesses and raise the values of surrounding properties.
Redevelopment of the mall is the No. 16 priority listed on the Mayor’s “19 for ’19 Agenda” released in January.
SOURCE: News release from Logansport Mayor Dave Kitchell