The city of Indio has been notified by the Haagen Company, who purchased the Indio Fashion Mall in 2018 from the previous owner, that they will no longer pursue redeveloping the Indio Grand Marketplace (formerly the Indio Fashion Mall) in its enclosed mall format. The notification ends a five-year planning and marketing effort based upon the approved plans to renovate and re-tenant the mall.
The Haagen Company released the following statement: “Regretfully, we have ceased our efforts to redevelop the Indio Grand Marketplace. After almost five years working to bring in major tenants with no success, we feel it is the right time to step back and assess the future of this site. The aftermath of the Covid pandemic shutdowns, the over 400 basis point increase in interest rates, ongoing supply chain issues, construction cost increases of over 40%, and the looming recession are some of the macroeconomic conditions that have created challenges for retail demand in secondary malls and contributed to our decision to cease our redevelopment efforts for the mall in its current configuration.”
Moving forward, the Haagen Company will restart the planning process to determine the best course of action for the future of this key property in the center of Indio. Mr. Haagen shared his disappointment in conversations with city officials. He expressed his continued commitment to working with the city to explore all options for the site, including the potential of marketing the mall site with the city property to the south.
“Malls across the country are struggling as consumers move to other retail formats and more experiential shopping opportunities,” stated Indio Economic Development Director Carl Morgan as an explanation for the change in plans.
The city will continue working with the Haagen Company to help generate interest from other developers in supporting an innovative project on the former mall property, and on the city-owned property located behind the mall. “We believe there is great potential for these parcels that will benefit our residents and taxpayers and we look forward to working with the Haagen Company in pursuing creative ideas for the site,” added Morgan.
Though Indio does not currently own, nor has it owned the former mall property in the past, the city has numerous plans and programs in place that help make the site attractive for development, including the recently-adopted Highway 111 Specific Plan and a Development Impact Fee Deferral Program to encourage quality commercial and residential growth.
Efforts to market the property will seek to capitalize on the considerable economic gains the city has made recently, as seen in the resurgence of new and exciting businesses Downtown, and the explosive growth of north Indio.
Mr. Haagen stated, “When one opportunity is lost, it opens the door for many new opportunities. The potential to combine the mall and the city properties could provide a unique opportunity to master plan over 40 acres of real estate in the heart of Indio.”
