Merle Hay Mall owners want $2.5 million loan from Polk County to buy empty stores

Patt Johnson | The Des Moines Register

Show Caption Hide Caption Sears files for Chapter 11 bankruptcy Sears Holdings plans to close another 142 unprofitable stores, as part of its Chapter 11 bankruptcy, on top of 46 store closings announced in August. 10/16/18

The owners of Merle Hay Mall in Des Moines are asking the Polk County Supervisors on Tuesday for a $2.5 million loan to buy the vacant Sears and Younkers buildings at the mall.

The 15-year loan would help pay the estimated $7 million Merle Hay Investors plans to pay for both buildings. Merle Hay would pay 1 percent interest on the note.

“Typically with economic development loans it's more jobs related,” said Mark Wandro, county administrator. “This is more retail.” County supervisors want to “make certain Merle Hay Mall remains viable,” Wandro said.

The 161,000-square foot Sears store closed Oct. 14 and the 165,000-square-foot Younkers store closed Aug. 31. Younkers' parent company, The Bon-Ton Stores, and Sears Holdings have both filed for bankruptcy.

Elizabeth Holland, mall CEO, has said the Sears building will be razed to make way for a strip mall that could house two or more tenants. Holland has said she is looking for tenants for the Younkers space, which could be divided into two spaces.