The village of Niles will take on its most ambitious redevelopment project in decades with the transformation of the Golf Mill Shopping Center, which is slated for demolition in the next three months.
The northwest suburban shopping mall will become a mixed-use town center, underscoring how malls are repositioning themselves amid changing shopping habits and the revision of community spaces. Plans include luxury housing, a hotel and a new approach to retailing.
The $440 million redevelopment plan was approved by Niles Mayor George Alpogianis and the Niles Village Board in June, though village officials said it will likely be a billion-dollar investment upon completion.
The village’s share of the total is $96 million. That money will be contributed through tax increment financing — meaning developer Sterling Organization will be reimbursed for each phase it completes within the TIF district up to $96 million. TIF districts divert property tax revenues to fund development projects.
Alpogianis said the redevelopment is a catalyst for the village when paired with new restaurant openings and luxury apartments being built elsewhere in Niles.
“There’s been nothing of this magnitude built since Golf Mill [was] built there 64 years ago,” he said.
Golf Mill Shopping Center opened in 1960 as an open-air mall. Later, it was enclosed, and the iconic Mill Run Playhouse was built on the grounds. The theater, before it closed in 1984, hosted acts such as Chicago native Shecky Greene and Frank Sinatra.
Today, the mall has more than 1 million square feet of leasable space in addition to a nine-story office tower. Target and JCPenney are two of its biggest anchors, alongside AMC Theatres, Ulta, Burlington and Ross.
The mall is full of memories for Niles residents and others in the Chicago area, Alpogianis said. But like many other malls across the country, it was hit hard by the COVID-19 pandemic.
Malls weren’t essential businesses during the pandemic, and many consumers turned to online shopping. Now, many malls like Westfield Old Orchard in Skokie are replacing those outdated department stores with experiences that can’t be found online.
Alpogianis and Niles residents are itching for similar changes at Golf Mill. About 75% of Niles voters said in a 2022 referendum they wanted the city to move forward with redevelopment of the property.
“The community drives us,” Alpogianis said. “We don’t drive the community.”
One of the biggest requests for the property was adding restaurants for special occasions, Alpogianis said. Residents told the village that while there’s plenty of restaurants and shopping options in the region, they don’t want to leave the village for those premier choices.
Future retailing at Golf Mill will focus on filling the gap between strip center stores and luxury stores.
“[Residents] don’t want to go anywhere else and shop. They don’t want to go to Westfield [Old Orchard],” Alpogianis said. “They said, ‘We’ve got this here. Why aren’t we doing something about it?’”
Alpogianis and other city officials see the future of the 80-acre site as “live, work, play” — an increasingly popular phrase for mixed-use developments that have virtually everything a resident could need on site. The Golf Mill Shopping Center redevelopment — to be called Golf Mill Town Center — will aim to be one of Niles’ premier destinations in the absence of a traditional downtown.
The first phase of redevelopment will include an overhaul of the mall’s retail, along with new luxury apartments and restaurants, Alpogianis said.
He said the project will be 70% retail and entertainment and 30% residential and other uses — the latter of which includes the “very good” possibility of a hotel and office, depending on market conditions.
Any office development would be medical, said Niles’ economic development director John Melaniphy.
The first phase will likely take about two and a half years, according to Alpogianis. Demolition will start within the next three months and last about a year. Residential work on the southwest corner of the site will take place alongside demolition of portions of the mall, with new retail and residential work estimated to take 18 months.
The AMC and mall’s interior stores will be demolished, Alpogianis said. However, five of the main anchors — Target, Ulta, Burlington, Ross and JCPenney — will remain. So will freestanding retailers like Gordon Food Service and XSport Fitness.
The apartments at Golf Mill will be luxury, Alpogianis said, likely with a rooftop pool. Plans include 305 units in a “Texas wrap building,” which places parking in the center, framed by apartments.
The apartments will have wide-ranging views, including the reconfigured shopping center, new water features and a promenade that serves as the connector to Golf Mill Park. The promenade and a new lawn will be used for events, including outdoor movies.
The go-to shopping destination for Alpogianis’ five kids growing up was Westfield Old Orchard, where they’d spend the day in large groups. Alpogianis wants to bring that same concept to Niles.
“We want a place where you can come shop, or my teenage daughter’s gonna hang out with all her 20 to 30 friends,” he said. “This administration … we’re all about families. We want to get people back out.”