The darkened Sears at Mesquite’s Town East Mall is set for a second act — this time as the anchor of a mixed-use revival backed by city incentives.
Dallas-based Elm Creek Investments won approval this week for rezoning and an agreement to redevelop the 18-acre site at 1738 North Town East Boulevard, on the north edge of the 1 million-square-foot mall, the Dallas Business Journal reported.
The plan calls for restaurants, a conference center and a possible 150-room hotel, with work expected to unfold over several years. The Mesquite City Council approved a 10-year, 1-cent sales tax rebate to support the project this week.
Elm Creek, operating as Elm Creek Real Estate, will be required to meet a series of performance milestones. By the end of next year, the developer must complete exterior renovations to the former Sears, begin parking lot construction and secure a 10-year lease with Main Event, which will occupy about two-thirds of the old department store with a 58,000-square-foot entertainment center. By July 2027, Elm Creek must have invested at least $25 million and prepped three pad sites for development.
Economic Development Director Kim Buttram said seven prospective tenants are already in talks to lease outparcels, including five first-time entrants to Mesquite. One of the biggest targets: a Vidorra restaurant, for which Elm Creek could receive an additional $500,000 grant if it lands a five-year, 6,000-square-foot lease by next summer.
The redevelopment could reenergize Town East, which is Mesquite’s top generator of property and sales tax revenue. Council Member Kenny Green called the mall a “cash cow” for the city. Elm Creek’s deal is expected to generate at least $100,000 in new sales tax revenue in the first year, growing to $200,000 annually by the end of the agreement.
A separate incentives package for the hotel is still being negotiated and could include state support. A 2019 hotel study identified the Town East site as the best location for a midsize conference center — and a global hotel brand has reportedly expressed interest.
Built in 1971, Town East Mall still draws about 5 million visitors annually despite retail headwinds. The Sears site, shuttered in 2021, was the last of the once-dominant chain’s North Texas stores. Town East Mall was recently pulled off the foreclosure auction block by Brookfield Properties after resolving distress tied to a $160.3 million loan.
— Eric Weilbacher
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