City officials say they hope to use the results of a recent in-depth retail study to attract businesses to Sunnyland Plaza and eventually turn the blighted area into a thriving shopping center.
The study by Teska Associates of Evanston, one of several in Tazewell and Peoria counties commissioned by the Economic Development Council for Central Illinois, supplied the city with demographics of potential Sunnyland Plaza customers, retailers who could meet customer demand and strategies for attracting those retailers and developers. The study cost $5,700. The city paid $3,200 toward its cost, and the plaza owner paid $2,500.
The study found that there are 33,000 to 34,000 people who live within a 10-minute drive of Sunnyland Plaza who make up the potential customer base.
“People who use Sunnyland Plaza won’t travel a long time. It’s not a destination type of shopping area,” said Jon Oliphant, planning and development director for the city of Washington. “So some of the categories of retailers we learned we should be looking at are grocery stores, restaurants, clothing and apparel and electronics stores. We’re trying to find holes on the west side of Washington and the east side of East Peoria that don’t serve the population adequately.”
The city had not fully taken into consideration before the retail study that Illinois Central College students could provide a large potential customer base, and it would be smart to try to attract retailers who could cater to that demographic, Oliphant said.
“The total enrollment is about 12,000 during the day, which should make the area appealing to businesses open from 9 to 5,” he said. “Fast food restaurants and things like that would really appeal to those between 18 to 22.”
The study found that the total demand for retail goods and restaurants is $154 million within a five-minute drive and $593 million within a 10-minute drive. The retail gap, or the demand that is not being met, is $84.5 million within a five-minute drive and $110.3 million within a 10-minute drive.
Retailers that are already located in or near the 12.7-acre plaza include Dollar General, Sunnyland Cinemas, a Mobil gas station, Arby’s, Family Video, Casey’s General Store and Ralph’s Floor Fashions. About five years ago, the plaza was also home to CVS and Sullivan’s grocery store, but after CVS opened a store at the corner of Wilmor Road and Peoria Street in Washington, the Sunnyland pharmacy closed, leaving a void in the area. Around the same time, Sullivan’s grocery store, the main anchor of the plaza, closed its doors.
City officials say they hope to use the results of a recent in-depth retail study to attract businesses to Sunnyland Plaza and eventually turn the blighted area into a thriving shopping center.
The study by Teska Associates of Evanston, one of several in Tazewell and Peoria counties commissioned by the Economic Development Council for Central Illinois, supplied the city with demographics of potential Sunnyland Plaza customers, retailers who could meet customer demand and strategies for attracting those retailers and developers. The study cost $5,700. The city paid $3,200 toward its cost, and the plaza owner paid $2,500.
The study found that there are 33,000 to 34,000 people who live within a 10-minute drive of Sunnyland Plaza who make up the potential customer base.
“People who use Sunnyland Plaza won’t travel a long time. It’s not a destination type of shopping area,” said Jon Oliphant, planning and development director for the city of Washington. “So some of the categories of retailers we learned we should be looking at are grocery stores, restaurants, clothing and apparel and electronics stores. We’re trying to find holes on the west side of Washington and the east side of East Peoria that don’t serve the population adequately.”
The city had not fully taken into consideration before the retail study that Illinois Central College students could provide a large potential customer base, and it would be smart to try to attract retailers who could cater to that demographic, Oliphant said.
“The total enrollment is about 12,000 during the day, which should make the area appealing to businesses open from 9 to 5,” he said. “Fast food restaurants and things like that would really appeal to those between 18 to 22.”
The study found that the total demand for retail goods and restaurants is $154 million within a five-minute drive and $593 million within a 10-minute drive. The retail gap, or the demand that is not being met, is $84.5 million within a five-minute drive and $110.3 million within a 10-minute drive.
Retailers that are already located in or near the 12.7-acre plaza include Dollar General, Sunnyland Cinemas, a Mobil gas station, Arby’s, Family Video, Casey’s General Store and Ralph’s Floor Fashions. About five years ago, the plaza was also home to CVS and Sullivan’s grocery store, but after CVS opened a store at the corner of Wilmor Road and Peoria Street in Washington, the Sunnyland pharmacy closed, leaving a void in the area. Around the same time, Sullivan’s grocery store, the main anchor of the plaza, closed its doors.
Oliphant said there are empty stores from ranging from 1,126 to 51,000 square feet available for development.
“We would like to think the potential is there with Route 8 being done right now on the East Peoria side and, hopefully, the Washington side getting done in next few years,” Oliphant said. “Certainly that will make the area more accessible to people driving in that area. The more traffic that passes by, the more appealing it is for retailers.”
In a separate study Teska did of the plaza, the company presented three scenarios that would revive Sunnyland Plaza. That study cost the city $2,500.
“The first scenario shows what a redeveloped facade, minor landscaping and signage improvements would do for the plaza,” Oliphant said. “We know it’s not in the best shape now.”
The second scenario involves demolishing much of the strip mall to create four out lots near Route 8 where individual businesses could build and making only a few other changes to the property. The third scenario calls for demolition of nearly all existing buildings.
“It’s the most radical and involves an entirely redeveloped site,” Oliphant said. “We would build a new theater with stadium- style seating, Dollar General and their out lots would be integrated into the site, and we would move the storm water detention area to the southwest corner of the property. The whole area would also become more pedestrian friendly with a trail.
“Obviously this plan would need a considerable investment,” he added.
Oliphant said which plan is carried out will be a decision mostly made by the plaza’s owner, Neelam Salmen, of California. She said in January its a catch-22 situation. Without new businesses in the plaza, there is a lack of revenue coming in, but interested parties may not want to lease space if the lot needs repaired.
“We are not going to refinish the lot, just to have it continue to get tore up. It is $100,000 project,” she said.
Salmen would front most of the cost of redeveloping the plaza, Oliphant said, though he is unsure what the cost of each scenario would be.
“It’s definitely going to take a fairly big investment on behalf of owner,” Oliphant said. “With that said, the city will probably be willing to offer back some of the future sales tax dollars, but that’s dependent on whether the owner fronts the capital for it, because we are not in a position to throw any money out.”
Oliphant said he in unsure how the redevelopment will play out, as it is only in the beginning stages.
“We obviously have a long way to go,” he said. “ ... With the economy, retailers are not expanding now. But we’re hoping that when Route 8 is done and the economy turns around, people can look at Sunnyland Plaza in a better light.”
