$19 Million Southdale Redevelopment Plan Unveiled

While planned renovations at have been , city and mall officials came together Thursday, May 24, to release details on the massive project.

The mall renovation will include a new dining pavilion and play area, redesigned common areas with upgraded ceilings, new tile flooring, soft seating areas, a redesigned guest services area, new indoor signage and cosmetic upgrades to the facility's texture and color palate.

"These renovations are going to revitalize Southdale and be very appealing to our loyal customers," Southdale manager Laurie VanDalen said.

The renovations are scheduled to finish in November 2012, though all work will be strategically performed to minimize interference and customer inconvenience during the mall’s operating hours.

VanDalen also announced the addition of five new tenants to the nation's first indoor shopping mall: Lucky Jeans, Madewell, Sephora, Soma Intimates and White House|Black Market.

White House|Black Market, Madewell and Sephora will all be housed on the mall's first level, near . White House|Black Market will be opening in August, with Madewell and Sephora following in November.

Soma Intimates will also open for business in November, located on the mall's first level next to . Finally, Lucky Brand will open in early November at an undisclosed location in the mall.

VanDalen said the names of additional new tenants will be released throughout the remainder of 2012.

Edina City Council last month approved a $5 million, zero-interest loan to Simon Property Group to help incentivize the overhaul of the aging mall. The loan only covers improvements to the common areas of the mall, with parent company Simon Properties reported to invest $14 million of its own money into the project.

The $5 million loan is coming solely from the Centennial Lakes TIF district and the funds will be repaid directly to that district, according to city staff.

Mayor Jim Hovland said he and other City Council members have long heard concerns from Edina residents about the viability of a retail giant like Southdale.

"Edina residents instinctually know that ‘as goes Southdale, so goes the neighborhood,’" Hovland said. "Partnering with Southdale’s ownership, Simon, gives us a chance to bring the mall to a level of finish it hasn’t enjoyed since it was built."

The agreement also created a nine-year TIF district surrounding Southdale Center, which is intended to utilize increased property taxes to help the city offset loan payments.

"Our judgment tells us that if a remodeled Southdale is the catalyst we think it will be, surrounding properties will increase in value and we will capture that value through a new TIF district that will help return lost interest income over the next nine years," Hovland said.

Furthermore, the agreement allows the City to construct a water treatment facility on the property and included an easement for the Metro Transit park and ride in exchange for $250,000 of the loan being forgiven.

"A win/win for everyone," according to Hovland.

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