Sears store redevelopment to include ‘national retailer,’ outdoor sports field

Cedar Rapids council approves financial incentives for $25 million project

Former Sears store rendering
A rendering of the redevelopment planned for the former Sears store at Lindale Mall in Cedar Rapids, showing a "future tenant." CREDIT CITY OF CEDAR RAPIDS

The redevelopment of the former Sears store in Cedar Rapids, including a portion for an outdoor “all-purpose competition sports field,” is moving forward.

At its meeting Tuesday, the Cedar Rapids City Council unanimously approved a resolution of support for above-standard city financial incentives for the $25 million project at the former Sears building at 4600 First Ave. NE, on the east end of Lindale Mall.

The Sears store in Cedar Rapids, the last remaining Sears location in the Corridor, closed in July 2018 and has since remained vacant.

According to Cedar Rapids economic development coordinator Scott Mather, the main tenant for the 120,000-square-foot former Sears building will be a “national retailer,” and the store’s former auto center bays on the southeast corner of the store will be removed to make way for the outdoor sports field.

Former Sears store layout
The layout of the redevelopment of the former Sears store at Lindale Mall, showing a sports field surrounded by a running track in the space formerly occupied by the Sears Auto Center. CREDIT CITY OF CEDAR RAPIDS

Renderings for the project show signage for a “future tenant,” as opposed to multiple tenants.

Contacted by the CBJ, a representative of Dallas, Texas-based Reserve Development said he could not speak further about the incoming retailer, pending the completion of a formal development agreement this spring.

The redevelopment of the former Sears store will create 110 full-time positions, according to city council documents. Construction is set to begin in August 2025 and be completed by March 2026.

The city incentive will provide a 10-year, 100% rebate of increased taxes generated by the project. Based on the investment and estimated post-development value, the project is expected to generate $3.4 million in total taxes over a 10-year period, of which $2.1 million would be rebated back to the developer.

In order to provide the incentive, an Urban Renewal Area (TIF district) will be established to allow the city to collect increment taxes and rebate them under the terms of a formal development agreement this spring, so the proposed resolution would also direct city staff to initiate the process of establishing a TIF district for the project.

In response to a question from council member Ann Poe about parking requirements near the former Sears store for the project, Mr. Mather said that while details will still await completion of the development agreement, the buyer “intends to resurface both sides, so it will be a much nicer parking lot than currently exists. It’s pretty run-down at this point.”

Mayor Tiffany O’Donnell also said she wanted to ensure that “we’re doing everything we can to provide benefits to all members of our community.”

“If there are opportunities to encourage partnerships with the work that they’re doing, I’m happy to talk more offline about that,” she said. “We just want to get ahead of that.”

Similar projects have been pursued elsewhere. According to the Des Moines Register, Genesis Health Clubs purchased the former Sears store at the Southridge Mall in Des Moines in 2021 and opened the doors to a new $13.5 million facility there in September 2024. And MLive reports a facility known as Zap Zone XL is planned for the former Sears store in Portage, Michigan, featuring “‘state-of-the-art’ attractions including bowling, go-karts, an adventure park, a skating rink, laser tag, mini golf and an arcade across two floors.”