Dallas-based Elm Creek Investments has received approval to redevelop the former Sears site at Mesquite’s Town East Mall. The Mesquite City Council agreed to rezone the 18-acre property at 1738 North Town East Boulevard and approved a 10-year, 1-cent sales tax rebate to support the project.
The redevelopment plan includes new restaurants, a conference center, and potentially a 150-room hotel. Construction is expected to proceed over several years. Elm Creek Real Estate, which is leading the development, must meet specific milestones. By the end of next year, exterior renovations to the old Sears building must be completed, parking lot construction must begin, and a 10-year lease with Main Event for a 58,000-square-foot entertainment center must be secured. By July 2027, Elm Creek is required to invest at least $25 million and prepare three pad sites for future development.
Economic Development Director Kim Buttram said that seven potential tenants are in talks for outparcel leases. Five of these would be new to Mesquite. Elm Creek could receive an additional $500,000 grant if it secures a five-year lease with Vidorra restaurant by next summer.
Council Member Kenny Green described Town East Mall as a significant source of revenue for Mesquite: “cash cow.” The redevelopment is projected to bring in at least $100,000 in new sales tax revenue during its first year and up to $200,000 annually by the end of the agreement.
Negotiations continue on a separate incentives package for the proposed hotel. A previous study identified Town East as an optimal location for a midsize conference center and indicated interest from an international hotel brand.
Town East Mall was built in 1971 and continues to attract about 5 million visitors each year despite challenges facing retail malls nationwide. The Sears store closed in 2021 and was the last North Texas location for the chain. Recently, Brookfield Properties resolved financial issues related to a $160.3 million loan, allowing Town East Mall to avoid foreclosure.
