Mall owners to invest millions in project

Area dubbed Community Entertainment District.

Great Lakes Mall is poised for reinvention. The Mentor mall is touted as a Lake County shopping destination, but the groundwork now is laid for it to become an entertainment hot spot as well.

In addition to major projects in the works for the site at 7850 Mentor Ave., the mall is being outfitted with a new way to attract redevelopment.

City Council this week authorized designating the 97-acre property as a Community Entertainment District.

The district — the first of its kind in Lake County — is designed to assist in creating a viable and thriving mixed-use environment contributing to entertainment, retail, sporting, social and arts opportunities.

“We believe the proposed CED designation (will) further strengthen Great Lakes Mall as a vibrant town center,” General Manager Tony Pestyk said. “It will allow Great Lakes Mall to build on recent renovations, including the upcoming exciting additions of Round 1 and new

restaurant offerings. We are enthusiastic about the future of Great Lakes Mall and will share more details on future plans when we are able.”

A million-dollar proposition

The purpose of a CED — created by the Ohio Legislature in 2005 — is to permit a pooling of D-5j liquor licenses to facilitate a large-scale development. This pool is in addition to the city’s normal allocation, and reduces the cost and the time to secure a permit.

“The D5j changes the population requirements for a liquor permit,” said Ohio Department of Commerce Public Information Officer Lindsey LeBerth.

The permits are held in connection with a food service establishment, such as restaurants, night clubs, bistros, pubs, etc., within the CED.

“This would provide 15 liquor licenses, based on the number of acres here, which is the maximum that would be allowable within a Community Entertainment District in Ohio,” Mentor City Manager Ken Filipiak said.

“Those licenses would be issued to and remain within that district.”

The program’s guidelines include a minimum area of 20 acres and $50 million investment within five to 10 years. The CED also must be in accordance with the city’s master plan or zoning map.

The applicant, Mall at Great Lakes, LLC, indicated that $15 million of investment is under contract, subject to availability of liquor permits.

The Round 1 project underway in the former men’s Dillard’s location includes a 50,000-squarefoot entertainment venue and 4,700-square-foot restaurant. In addition, a 6,500-square-foot restaurant is planned on an outparcel.

Another $5 million to $10 million investment is anticipated in the next two years resulting from two prospective redevelopment projects, one of which is a yet-to-be announced development of a new large-format retail space.

“While no plan is currently under consideration, the upper floor of the former Dillard’s men’s store, the former Sears store, and tire and battery building represent three significant redevelopment opportunities which could create $25 million in investment within a decade,” Mentor Economic & Community Development Director Ronald M. Traub said.

“The comprehensive plan identifies the Great Lakes Mall as a future challenge and the desirability of ensuring its long-term stability.”

A game changer

There are about 70 CEDs in Ohio, the nearest being in the Cleveland area, including Cleveland Hopkins International Airport, Crocker Park, the Flats East Bank, Playhouse Square and the Waterloo Community District.

Along with enhancing the Round 1 and restaurant projects, the designation is anticipated to be a catalyst for similar redevelopment elsewhere on the Washington Prime Group property.

“The Community Entertainment District designation for us is going to unlock real value and make us more capable of delivering some of the projects that we would like to be able to tackle,” said Great Lakes Mall Director of Development Matt Jurkowitz, at the Dec. 5 council meeting.

He added that Round 1 brings a “very, very high quality, family-oriented event, bowling, karaoke and other amenities operation” into the market.

Along with the 60,000 square feet on the upper level being prime for the taking, he told city officials that the Seritage-owned Sears space is being actively assessed for redevelopment.

“I just want you to know that this is the type of thing that is making their eyes broaden and their vista broaden to see what’s really possible given the tight nature of liquor permits, and so this is a tremendous tool,” Jurkowitz said.

City officials are excited about the prospects as well.

“The city administration believes that a Community Entertainment District for the Great Lakes Mall is a good fit for our community at this location, and will assist in the continuing reinvestment and success of the mall property going forward,” Assistant City Manager Tony Zampedro said.

Ward 1 Councilman Sean Blake noted that the zoning hasn’t changed for the site, but that the CED is an overlay district on the B-2 business district.

“I think this is fantastic and I look forward to seeing what comes next,” he said.

“The Community Entertainment District designation for us is going to unlock real value and make us more capable of delivering some of the projects that we would like to be able to tackle.” — Great Lakes Mall Director of Development Matt Jurkowitz

CARRIE GARLAND FOR THE NEWS-HERALD Great Lakes Mall in Mentor recently was approved as a Community Entertainment District, considered an important tool toward redevelopment.