Developer Plans Outlet Mall, Hotels for Southland Area

Village officials keep saying they expect big things for business development around the Silver Cross replacement hospital, and they could be right if plans for an outlet mall are approved.

Spring Creek Outlets would be the main component of a mixed-used development proposed by Center Creek Development, LLC. Plans are to break ground in August and have its grand opening in fall 2012. The development, which would be on the northwest end of the Silver Cross replacement hospital campus, could also include hotels, senior housing and restaurants.

“There is a hole in the market," developer Jeff Middlebrook of Center Creek said. "The southwest suburbs are under-served by retail in general.”

If approved, the mall would be built in two phases. The first portion, about 275,000 square feet, would open in fall 2012 and the rest of the development would be built out over the next five years. The design of the mall will be a "racetrack" style, with an oval of stores and another ring within that group. These features, along with the values prices found at outlet malls, meet Middlebrook's goal of customer convenience.

“It’s important we build and open phases near to 100 percent full as possible to make the shopping experience enjoyable," he said. "And with this oval within an oval, the shopper never runs out of new shops to visit.”

This development would land in a spot expected to expand greatly over the next few years after the Silver Cross hospital campus opens in February 2012. Middlebrook said the having shopping, hotels and restaurants near the hospital will be a great fit in the area. According to Silver Cross, there could be about 7,000 people in and out of the area on a daily basis. 

“The cafeteria in there isn’t feeding 7,000 people a day," Middlebrook said. "So you'll have people who are looking to eat or shop, or need an extended stay if they're visiting someone in the hospital. The synergies play off each other very well."

He said the mall could be a regional draw and something that isn't offered in Will County. The nearest large, retail shopping area such as this is in Orland Park, Middlebrook said, but he thinks the lack of value pricing and a spot on an interstate have made for "inconvenient regional shopping."

The hospital's location next to Interstate 355 makes it prime for new business, Mayor Tim Baldermann said. Another development, Cedar Crossings, has had  for a 970,000-square-foot retail center on the southwest side of the hospital but plans to have some roadwork in the site done this year.

"The hospital has done a great job of keeping the interest up," Baldermann said. "It is a generator for that area, and with 355 right there, those are major factors behind why New Lenox is still able to grow in this economy."

It's the economy that made this plan possible; land was cheaper, and shopper's personal budget situations helped keep outlet/value sales stagnant while regular retail dipped. Besides offering value, the development could create about 2,800 new, permanent jobs, many of which Baldermann said could go to people in New Lenox.

The village would also see dividends of the sales tax from the development, but first will likely have to pay for $20-30 million in road improvements in the area. Baldermann said that money could come from the 1-cent sales tax New Lenox gets through its home rule status, just how the village planned to use it: for new developments that could bring in additional revenue. Additionally, Baldermann said the location of the development would provide shopping convenience for residents without additional traffic congestion.

"It’s good for our tax base and our residents," Baldermann said. "We’re on the right track."