After years of attempts to take over the River Oaks Center mall, Calumet City took steps Thursday to acquire portions of the property through eminent domain.
Mayor Thaddeus Jones pitched his plan for quick-take action of the long declining shopping center following failed negotiations with Namdar Realty Group, which has owned the property since 2017.
“Namdar has offered counter that they think the value of the property is $40 million,” Jones said. “I don’t think there’s anybody in this room that thinks that River Oaks mall in its current state is worth $40 million.”
The City Council agreed, approving the quick-take action to begin the process of eminent domain by making a final offer to Namdar to buy the mall for $13.2 million. Jones said the realty group is unlikely to accept that offer, forcing further action.
However, Ald. James Patton, the sole vote against the resolution, expressed concerns about the city’s ability to quickly find a developer interested in taking on the project and fronting the costs, whether Namdar accepts or declines the offer.
“You have to understand that for us to consider taking such a drastic action like this, there has to be some viable developer lined up, or multiple viable developers lined up, to do something,” Patton said. “Because if we step in and we take we take this action, then if there’s no developer there, the city’s saddled with the mall. There’s not a single person in this building that’s qualified to run a mall.”
Jones said two developers have shown interest in River Oaks Mall, but Patton remained skeptical as neither of them attended the public hearing. Patton is running against Jones for mayor in the February 2025 Democratic Primary.
The city unveiled a $110 million development plan for the 11-acre campus in July that incorporated retail, restaurants and housing.
Jones also presented updated ideas for redeveloping River Oaks for mixed use. A video animation of the imagined complex playing on the council chamber’s flat screens included a three-level go-kart track to be operated by the New Jersey based company Supercharged.
Jones said under eminent domain law, the city will have to provide Namdar just compensation for the property and cover costs for current tenants to relocate or potentially be included in any new development. The quick take action must be approved by the Illinois General Assembly, which Jones, who is also a state representative, said will be considered during November’s veto session.
ostevens@chicagotribune.com
