Exterior cleanup work is expected to start soon on a dilapidated former Galesburg shopping center that its new owner calls “a disaster.”
Omar Kasani of Oak Advisors CPAs LLC of Houston, an investor in the company that in December bought the former Sandburg Mall, along with his business partner, Brett Norwich, visited the property in late January. They also toured Galesburg and met with city officials.
“(Galesburg) is a beautiful city, but the mall is kind of a disaster,” said Kasani. “It needs to be cleaned up. For the best interest of the city, something needs to be done for sure.”
Steve Gugliotta, director of Community Development, confirmed that he and other city officials met with Kasani and Norwich on Jan. 23.
“We appreciated their visit to Galesburg to see the property and explore our community,” Gugliotta said. “Their initial focus is on cleaning up and securing the site, and they have already been in discussions with a local contractor.
“Once that phase is complete, their team will conduct a more detailed assessment to determine a project that aligns with both their goals and the community’s needs.”
Owner: ‘I think everyone is bothered by the current situation’
Kasani said he has been in contact with local and national firms to determine how to move forward with the property.
“I think it will have to be demolished,” Kasani said. “As we’ve seen around the country, there’s no need for this kind of mall anymore.
“And leaving it as is is not really in the best interest of anyone. I think everyone is bothered by the current situation.”
Asked if the work needed to remedy the condition of the former mall was more than he anticipated, Kasani said, “I would say so.”
According to property sales obtained from the Knox County Assessment Office, Galesburg Investment LLC purchased the property at 1150 W. Carl Sandburg Drive from SMB LLC for $500,000 on Dec. 11. The former Sears store, in addition to all of the interior wings of the mall, failed to sell via an auction in August. Starting bid for the 250,000 square foot property was $200,000.
Portions of the mall have been sub-divided, sold, and have been redeveloped by other businesses. In addition to the Lane Evans VA Clinic locating to Bergner’s, UHaul occupies the former Kmart building and Galesburg Warehouse Bargains is located in the former JC Penney building. Karmark Tire & Automotive has been in the automotive wing of the JC Penney building for 26 years.
Kasani said a national real estate company has been retained to prepare a market study for future developments. Until then a local construction company will work to remove graffiti drawing, secure the entrances, and remove overgrown trees and bushes.
“Leaving it as is is not really in the best interest of anyone,” Kasani said. “I think everyone is bothered by the current situation. The city has been very helpful in presenting us with some options and their support.
“It will come down to how we can maneuver around the cost problem, because it will be very expensive to do all of the work that we’re talking about.”
He added, “We’re in this with an open heart, and trying to do the best for everyone. Soon, you’ll see something moving on the area.”
Kasani said his firm has hired a national real estate company to determine potential future use for the site.
“It could be anything from apartments, to small businesses to housing,” he said. “But the first thing is to demolish it and see what we have. To be honest with you, there’s a lot of work to be done.”
Gugliotta said the property owners could be eligible for city assistance to offset costs for cleaning up and bringing the site back to life.
“As the property is within the Enterprise Zone, they may qualify for benefits such as a waiver of construction permit fees, a sales tax exemption on building materials, and a property tax abatement on improvements,” Gugliotta said.
Sandburg Mall opened Oct. 1, 1975, with anchor stores Bergner’s, Sears and JC Penney, and dozens of store in the three wings of the impressive structure. Kmart later added an anchor wing. After 43 years, Sandburg effectively died on Aug. 26, 2018, when Bergner’s closed its doors for good, leaving just GNC in the mall. GNC later moved to Seminary Square and has since closed that location, as well.
Economic development head: Area is ‘very well situated’
Ken Springer, president of Knox County Area Partnership for Economic Development Springer, cited continued growth in the immediate area near Sandburg Mall with the recent additions of Chipotle and Jersey Mike’s, along with the Galesburg Crossings, which brought Pet Smart, Marshalls, and Five Below to the former Wal-Mart building on North Henderson Street.
“The future redevelopment of the former Sandburg Mall site would be very much welcomed. North Henderson Street and Carl Sandburg Drive is an intersection that is very well-situated for multiple types of development.
“It’s got good traffic counts and proximity to a wide range of retail, lodging and restaurant businesses. The site has a lot of options for reuse.”
