The former Sears store at Town East Mall in Mesquite will be redeveloped as part of a new mixed-use project led by Elm Creek Investments. The Dallas-based developer received approval for rezoning and an incentive agreement from the Mesquite City Council, according to the Dallas Business Journal.
The redevelopment plan includes restaurants, a conference center, and potentially a 150-room hotel. The project is expected to proceed over several years. As part of the agreement, Elm Creek will receive a 10-year, 1-cent sales tax rebate from the city.
Elm Creek, under its real estate division, must meet several milestones. By the end of next year, it is required to complete exterior renovations on the former Sears building, begin construction on parking lots, and secure a 10-year lease with Main Event. Main Event is set to occupy about two-thirds of the old department store with a 58,000-square-foot entertainment center. By July 2027, Elm Creek must invest at least $25 million and prepare three pad sites for further development.
Kim Buttram, Economic Development Director for Mesquite, stated that seven potential tenants are in discussions to lease outparcels, including five businesses that would be new to Mesquite. One key target is Vidorra restaurant. Elm Creek could receive an additional $500,000 grant if it secures a five-year lease for a 6,000-square-foot Vidorra location by next summer.
Council Member Kenny Green commented on Town East Mall’s significance to city finances: “cash cow.” The city expects that Elm Creek’s project will generate at least $100,000 in new sales tax revenue in its first year and increase to $200,000 annually by the end of the agreement.
Negotiations are ongoing for a separate incentive package for the proposed hotel, which could include state support. A 2019 study identified Town East as an optimal site for a midsize conference center, and there is reported interest from a global hotel brand.
Town East Mall was built in 1971 and continues to attract about 5 million visitors each year. The Sears location closed in 2021 and was the last North Texas store from that chain. Recently, Brookfield Properties removed Town East Mall from foreclosure after resolving issues related to a $160.3 million loan.
