The Mesquite City Council has approved a redevelopment plan for the former Sears site at Town East Mall, granting Dallas-based Elm Creek Investments the necessary rezoning and a 10-year, 1-cent sales tax rebate to support the project. The redevelopment covers an 18-acre area at 1738 North Town East Boulevard, located on the north side of the one million-square-foot mall.
The proposed project will include restaurants, a conference center, and a potential 150-room hotel. Development is expected to proceed in phases over several years. Elm Creek Investments, operating as Elm Creek Real Estate, must meet specific performance milestones. By the end of next year, the company is required to complete exterior renovations to the former Sears building, begin parking lot construction, and secure a decade-long lease with Main Event. The entertainment company plans to occupy about two-thirds of the former department store with a 58,000-square-foot center. By July 2027, Elm Creek must have invested at least $25 million and prepared three pad sites for future development.
Economic Development Director Kim Buttram said that negotiations are ongoing with seven prospective tenants for outparcels, including five businesses new to Mesquite. One significant target is a Vidorra restaurant. If Elm Creek secures a five-year, 6,000-square-foot lease for Vidorra by next summer, the developer could receive an additional $500,000 grant.
Council Member Kenny Green described Town East Mall as a “cash cow” for Mesquite. The agreement with Elm Creek is projected to 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 incentive period.
Discussions continue regarding a separate incentive package for the hotel component of the redevelopment. State support may also be included. A study from 2019 identified Town East Mall as a strong candidate for a midsize conference center. A global hotel brand has reportedly shown interest in the site.
Town East Mall was built in 1971 and continues to attract around five million visitors each year despite broader challenges in the retail sector. The Sears location closed in 2021 and was the last North Texas store of the former retail chain. Recently, Brookfield Properties removed Town East Mall from a foreclosure auction after resolving issues related to a $160.3 million loan.
