The city of Mesquite is continuing with its plans to redevelop the former Sears anchor store at Town East Mall, which has been vacant since 2021.
The city council last week approved an agreement with Elm Creek Investments, a Dallas-based investment firm. In addition to bringing the previously announced Main Event Family Entertainment Center to Town East, the redevelopment plan includes a conference center, a 150-room hotel and several restaurants, one of which will have an outdoor patio.
There are seven parcels that will be leased to tenants, including five businesses that are new to Mesquite, economic development director Kim Buttram said at the Oct. 6 council meeting.
Among the potential tenants is Vidorra, a popular upscale Mexican restaurant that has locations in Dallas, Addison and Rockwall.
Buttram called Town East the "epicenter here on the east side of DFW," attracting millions of people a year to the area. She said there is an "urgency" to fill the former Sears space.
"This new development group came in with the ownership in February of this year, and we've gotten more done in eight months than we've gotten done in five years," Buttram said.
The development project includes a 10-year, 1-cent sales tax rebate, and Elm Creek Investments will have to meet certain milestones, including securing Main Event by December 2026, in order to get the tax incentive.
The firm will have to make a $25 million investment into the site by July 2027 and have at least three of the parcels ready for development by then. The plan also includes enhanced landscaping and green space.
District 1 council member Jeff Casper said the public-private partnership is a win for both the city and investment firm. "If anything goes bad, the city is still really well protected," he said. "It's structured in a way to create urgency in a sustained manner."
The agreement is the city's latest effort to keep afloat Town East Mall, which was saved from the auction block earlier this year. In March the Mesquite City Council approved an incentive to keep the Macy's anchor store open for at least five more years.
District 2 council member Kenny Green said last week the city needs to protect Town East "at all costs," calling it Mesquite's "cash cow." He and other council members expressed support for the new Sears redevelopment plan.
"We're going to get the lion's share of everything," he said. "We're going to give a little bit of money back to make this the best development it can be."
Priscilla Rice is KERA's communities reporter. Got a tip? Email her at price@kera.org.
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