Developer proposes ‘competition sports field’ in former Sears store at Lindale Mall

CEDAR RAPIDS — The Cedar Rapids City Council on Tuesday will consider a resolution of support for city incentives to boost the redevelopment of the long closed Sears store at Lindale Mall. The store was closed in 2018.

Reserve Development of Dallas, Texas, announced last year that it had bought the 120,000-square-foot property. At the time of the sale, the assessed value of the property was nearly $3.6 million. It sold for $3.4 million, according to city assessor records.

According to city documents, the developer is working with a national retailer to repurpose the building to include a “year-round all-purpose competition sports field.”

The documents state that the building has been vacant “for several years” and will need “significant remediation of contaminants” to allow for redevelopment.

City staff have recommended approval of the resolution "authorizing above standard City financial incentives under the Brownfield/Grayfield — Economic Development Program for the redevelopment of the prior Sears building as proposed by Shops at Cedar Rapids, LLC."

Reserve Development has not responded to repeated calls from The Gazette over the past two months seeking more information.

City staff reported that the proposed project would be a $25 million capital investment in redeveloping the Sears building. The number of jobs provided is said to be 110 full time positions.

It's proposed that construction would begin in August, and be completed in March 2026.

If approved, the city incentive would include a 10-year, 100 percent rebate of increased taxes generated by the project. Based on the investment and estimated post-development value, the project is expected to generate $3.4 million in total taxes over a 10-year period, of which $2.1 million would be rebated back to the company, the staff report states.

To provide the incentive, an Urban Renewal Area (Tax Incremental financing District) would be established to allow the city to collect increment taxes and rebate them under the terms of a development agreement. The resolution also directs city staff to initiate establishing a TIF district for the project.

Approval of the request for city financial participation is subject to establishing an Urban Renewal Area and approval of a Development Agreement.

"The City Manager, or designees, is authorized and directed to negotiate a Development Agreement with the Developer which memorializes the commitment of the Developer to the proposed Project and City participation, and, after the establishment of an Urban Renewal Area, the Development Agreement is to be brought back to the City Council for approval," according to the staff recommendations.