Von Maur exits Sycamore next year

IOWA CITY - The Von Maur department store chain plans to leave Sycamore Mall in June 2013, according to a mall spokeswoman.

Jennifer Neumann said terms of an agreement, including the move-out date, have been reached by Core Realty Holdings of Newport Beach, Calif., the mall's owner, and Davenport-based Von Maur.

Neumann, of de Novo Alternative Marketing in Cedar Rapids, also works with Von Maur as a local spokeswoman.

The disclosure confirms what many in Iowa City have expected since Von Maur announced plans to open a larger store in the city of Coralville's Iowa River Landing development, where it will receive the equivalent of a free shell building and parking.

Neumann, though, said Sycamore is making plans to turn the departure into a positive.

“Sycamore Mall is looking at this as their next opportunity,” she said.

Neumann said the mall is working to recruit another anchor tenant and expects to secure one that is new to the area. The shopping center also aims to improve its ties with the Iowa City community, she said.

The rich incentive package offered by the city of Coralville to attract Von Maur to its development has provoked an outcry, because it will be funded by more than $9.5 million in tax increment financing. But Coralville leaders say they cannot be blamed for Von Maur's departure from Sycamore Mall, because the department store chain was already seeking an alternate location when it was approached by the city.

The Von Maur relocation has become one of the focal points in an Iowa Legislature debate on limiting the uses of tax increment financing.

The city of Coralville maintains that the 85,000-square-foot Von Maur store will be worth the investment because it will provide an anchor to draw other retailers to Iowa River Landing.

The development's first phase is expected to involve $100 million in investments, including a new University of Iowa Health Care outpatient medical facility and a private microbrewery and restaurant.