Update: The Des Moines City Council approved the financial assistance plan for Merle Hay Mall at Monday's meeting.

Des Moines officials are considering a $4.8 million development agreement with the owner of Merle Hay Mall to reinvent the aging shopping center after the loss of Sears and Younkers anchor stores last year.

The City Council on Monday will vote on whether to double the mall's annual tax increment financing payment from $400,000 to $800,000 for the next 12 years to help the owners attract new stores, restaurants and entertainment venues.

In turn, the mall's owner would be required to go through a detailed master planning process to turn the complex into a "source of vibrancy" on the city's northwest side, said Erin Olson-Douglas, economic development director for Des Moines.

The city wants to see the mall attract more convenience retailers, like Target, for neighbors and destination spots, like Flix Brewhouse, to draw customers from throughout the metro.

"We've all been talking about how to work on neighborhood revitalization and I think these initial efforts really help to stabilize, retain and grow the demand for the residents who already live and who may be thinking about living in this area," Olson-Douglas said. "Longer term, I think that this contributes to the economic growth in this area."

Mall owner Elizabeth Holland said Thursday there are already several projects in the works, including:

Closing Old Chicago to create room for a new, 12,000-square-foot junior anchor and a different restaurant. The anchor would be new to the Des Moines market and could be open as early as May, she said.

Working with a local business that wants to open a family entertainment and sports bar concept on the south side of the mall where a Rascal Flatts restaurant was once planned.

Combining several vacant spaces near Flix Brewhouse to create a 10,000-square-foot space for a kid-friendly entertainment concept like a swim school.

Updating and expanding the bowling alley, Merle Hay Lanes, by adding additional games and food options.

Holland said she'd also like to see the mall find ways to incorporate multi-family housing on the 75-acre property that spans Des Moines and Urbandale.

The Urbandale City Council last week denied a proposal by Anawim Housing and the mall's owner to build 43 apartments on an underused parking lot west of IHOP, 6301 Douglas Ave.

Holland has been in negotiations with Des Moines officials about increasing the TIF payments for about nine months — even before two of the mall's original anchors closed their doors. Younkers closed in August and Sears in October after both parent companies filed for bankruptcy.

But the closures accelerated the need to attract new tenants, Holland said. Many store owners have "economic bargain" clauses in their leases that let them pay reduced rent if the mall fails to keep a healthy ratio of anchor stores and other tenants.

Merle Hay Mall is currently 82 percent occupied.

The mall was awarded a $2.5 million loan from Polk County in October to purchase and redevelop both anchor spots. Des Moines' financial assistance would only go toward redeveloping Sears. The former Younkers store sits in Urbandale.

Initial plans called for the Sears building to be torn down and replaced with a retail strip center. Younkers was to be converted into two spaces for a general retail store and a family entertainment venue.

It's too early to say what would go in either place, Holland said. The mall has not been able to purchase Sears because it is still tied up in bankruptcy proceedings, she said.

"(Holland) is in a position where she needs to move forward," Olson-Douglas said. "And we want her to get started."

Des Moines first entered into a 15-year economic development agreement with the mall in 2008 to help make streetscape improvements and bring in front-facing tenants along Merle Hay Road, a portion of the mall that now includes discount clothing retailer Ross Dress for Less.

The agreement was extended in 2013 when the mall demolished a parking structure to accommodate Flix Brewhouse, a dine-in movie theater and brewery.

The existing $400,000 per year payment comes from a tax increment financing district that was also created in 2008. It encompasses about 118 acres, generally located along Merle Hay Road, slightly north of Ovid Avenue to Aurora Avenue and on Douglas Avenue from about 54th Street to the city's boundary at 62nd Street.

Since that time, new retail development along that corridor has given Des Moines additional tax increment financing money that it can put toward development projects in the area. The urban renewal area has generated $22.7 million, according to the city.

The three corners at the intersection of Merle Hay Road and Douglas Avenue have all seen significant improvements with the addition of new retail strip centers that have attracted businesses such as Chipotle, Sports Clips hair salon and Noodles & Company.

"It's completely transformed what's across the street from us," Holland said. "Our hope is it continues further."