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Redevelopment commission approves pay-as-you-go plan to demolish part of Muncie Mall and create outward-facing retail
Summary
Whole Property Group will proceed with a phased plan to tear down roughly 250,000 square feet at Muncie Mall and build outward-facing outparcels; the commission approved a pay-as-you-go tax-increment reimbursement agreement capped at about $2.52 million.
The Muncie Redevelopment Commission unanimously approved a resolution authorizing a pay-as-you-go tax increment reimbursement agreement to support Whole Property Group’s multiyear redevelopment of Muncie Mall.
Whole Property Group representative John Mulherin told the commission the company plans to demolish roughly 250,000 square feet (including the former JCPenney and Sears footprints and an obsolete theater) to create outward-facing outparcels on McGalliard Avenue and new development pads. Mulherin said the company purchased the mall earlier in 2024 and believes demolition and reconfiguration are necessary to stabilize operations and attract new tenants.
"At 68% vacancy the mall in its current configuration does not have a viable future," Mulherin said, arguing that tearing down obsolete anchor boxes and creating street-front parcels would unlock new incremental value.
Whole Property Group proposed to fund demolition and initial site work upfront, estimating demolition and related costs at about $2.5 million. The company asked for a pay-as-you-go tax increment reimbursement capped at $2,523,103 for verified demolition and site-preparation expenses; staff and the developer emphasized any reimbursement would come only from future incremental tax revenue generated by the redeveloped property.
Staff and the developer provided valuation figures: the mall’s current assessed value was cited at roughly $4.7 million (mall-only) with a larger surrounding retail node assessed at approximately $45 million. Whole Property Group projected phase 1 could add about $14 million in increment to the property and produce roughly $423,000 in incremental tax revenue under the city’s effective tax rate assumptions, from which pay-go reimbursement would be drawn.
The commission previously authorized an initial reimbursement of $432,000 for early demolition and abatement work; the new resolution expands the maximum reimbursable pay-as-you-go pool to the $2.5 million range and formalizes the terms of verification and reimbursement. Under the agreement, all claimed expenses must be verified and approved by the city and any reimbursement is limited to actual increment produced; the city will retain a portion of increment as noted by staff.
The commission voted 5–0 to approve resolution 2025-06 after questions about timing, abatement and demolition sequencing. Commissioners and staff discussed the long-term nature of mall redevelopment and the need for outward-facing retail to attract tenants in secondary markets. Mulherin said demolition abatement could begin in October with construction of new pads to follow if tenants commit.
The resolution directs staff to execute the pay-as-you-go agreement consistent with the capped reimbursement amount and verification procedures outlined in the presentation. The developer and staff said further phases would be considered only if phase 1 creates the expected incremental value and tenant interest.
The vote record in the meeting transcript shows the roll call as unanimous (Mister Bishop, Mister Dale, Mister Miller, Mister Prabilla and Miss Waggly voted yes).
