What will happen to the former Towne Mall property in Middletown? City seeks development proposals

Middletown residents have offered input on the redevelopment of the largely empty Towne Mall property in the city’s East End, and now city leaders want to hear from developers with concepts — and the funding — to make it a reality.

The mall, completed in the late 1970s, was annexed into Middletown in the late 1990s after a battle with Warren County officials. As shopping habits changed, the mall fell on hard times like many others, leaving a huge empty complex at one of the city’s gateways.

The city paid $10 million to purchase the four-parcel, 32-acre mall property in July 2024 to guide what goes on the land in the middle of surging development along Interstate 75. When the city acquired the property, it had no specific plans.

But Councilman Steve West II told the Journal-Newsthere is a plan — site control.

“Without site control it could have been a mix of things that may not have been beneficial to the city, the residents and economic development,” he said. “We did not buy it without a plan. It is site control. That goes for any successful redevelopment or revitalization you see out there.”

Credit: Nick Graham

Now it’s time to find a development partner or partners to bring a vision for the site that will include elements suggested by residents and will complement the ongoing surrounding development along Interstate 75.

The city’s online survey in November received 632 responses from community members and a town hall open house in the former Elder-Beerman store garnered plenty more suggestions.

Seventy-five percent of respondents would like to see some sort of retail or service commercial use including entertainment, restaurants, family activities and shopping, according to the staff report. Entertainment, shopping and restaurants were the Top 3 reasons citizens said they spend money in other communities. Top places of inspiration for future developments that were submitted include Austin Landing, Liberty Center and The Greene.

Currently, the only remaining retail/service location within the mall that continues to serve the public is Planet Fitness, but outparcels, which are not owned by the city, have continued to grow and develop, including Gabe’s, Burlington and Buffalo Wild Wings.

City staff said it will work to keep Planet Fitness in the city and a part of the future development

Beyond the property under the city’s control, the developer of this property may be able to leverage additional opportunities as it relates to parcels of private ownership surrounding the site, according to the staff report.

While the surrounding parcels are privately controlled, the city is interested in a development approach to the area that will ultimately grow and complement other commercial amenities. The city is open to plans and considerations that involve the demolition of the city owned portions of the mall buildings.

All plans, regardless of the inclusion of neighboring properties in the redevelopment, should consider the accessibility and flow of neighboring uses. This site, possibly in conjunction with one or more adjacent properties, is well-suited for a mix of uses ranging from residential units, community retail, restaurants, hospitality and offices.

Submission will be accepted through March 19 and a review and selection process will be conducted by a committee before any finalized plans are formed and go before council for approval.

Councilman Paul Lolli said he wants to make sure the city’s plan “takes seriously what people responded to in the surveys as part of what the final decision is.”

He added the staff has been talking with some of the developers in the area and there is already a “handful” of those expressing interest.

“We need to be transparent and let the citizens know that they truly had a voice,” he said.

Councilwoman Jennifer Carter said she would like to see citizens become part of the the committee reviewing the proposals.

“And not citizens we all know. The ones that no one knows. We pick the same people to speak for the community. So I am wonder if we can pick someone different,” Carter said.

Acting City Manager Ashley Combs said the staff could look at “what that committee would look like” and report back to council.

West said the request for qualifications, or RFQ, is open-ended and leaves the ideas open to any and all innovative ideas, “so I like it.”

But West said time is of the essence and the assurance of the developer’s ability to finance the private portion of the project is a must.

“A red flag is if someone says we will put it on the forecast for 2028,” West said, noting council knew there was a sense of urgency when it bought the mall land. “We are in a race right now. The Millikin Road exchange is going to go in in a few years. Once the Millikin Road exit goes in we are going to have to fight twice as hard for anything off of exit 32. Right now it is a sprint.”

PROPOSAL SUBMISSIONS

To view the request for qualifications, visit the City’s BidView page at https://secure.cityofmiddletown.org/bidview.