Redevelopment panel approves Whole Property Group’s Phase 2 PAYGO negotiation for Muncie Mall
February 27, 2026 | Muncie City, Delaware County, Indiana
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The Muncie Redevelopment Commission voted Feb. 26 to approve Resolution 2026-01, authorizing the board president and staff to negotiate final terms of a Phase 2 pay-as-you-go tax-increment financing (PAYGO TIF) arrangement requested by Whole Property Group for full demolition and redevelopment of the former Muncie Mall site.
John Mulhern, principal at Whole Property Group, told the commission the company had purchased the failing mall in December 2023 and initially planned a smaller Phase 1 demolition (JCPenney, Sears, and the movie theater) but ran into infrastructure problems and tenant closures that made the original plan unviable. "Phase 2 is complete demolition of them all," Mulhern said, arguing that a full teardown would better unlock outward-facing retail and large-format opportunities on the McGalliard corridor.
Mulhern presented cost and valuation figures and asked the commission for an additional PAYGO allocation. He stated a total project cost of $5,358,959, noted the commission previously approved $2,500,000 for Phase 1, and asked to stack a Phase 2 PAYGO of $2,835,008.56 on top of that arrangement. Jeff (city staff) clarified the PAYGO structure in response to commissioners’ questions: "They don't get paid until it creates the incremental tax increase," he said, noting the developer would only receive reimbursements after incremental property-tax revenue is generated.
Commissioners pressed Whole Property Group on tenant impacts, timing and downside risk. Mulhern said existing tenants are relocating within the Muncie market, not leaving the region, and that demolition would improve surrounding property conditions even if redevelopment took time: "Community wins day one when we tear it down," he said. Mulhern gave a range for demolition timing after the final tenant relocates and said some demolition work could begin as soon as the contractor is mobilized; he also said the last-tenant timeline could range from six months to two years depending on leases.
During the meeting a commissioner moved to approve Resolution 2026-01; after a second, Commissioners Prabilla, Rawlings, Waggly and Miller voted in favor and the motion carried. The resolution, as discussed on the record, authorizes negotiation of final terms and continues the PAYGO structure that reimburses developers only after incremental tax revenue materializes.
The commission did not reconcile minor differences in the financial figures presented during the meeting; Mulhern’s stated project totals and the requested incremental PAYGO amount on the record do not sum precisely in the presentation. City staff and the developer will negotiate final written terms and any clarifications necessary to reconcile figures before funds would be disbursed under a PAYGO agreement.
Next steps: staff and the board president were authorized to conclude negotiations and return with final paperwork. The commission did not vote to disburse cash up front; the PAYGO structure requires the developer to complete work and generate incremental tax revenue before reimbursement.
John Mulhern, principal at Whole Property Group, told the commission the company had purchased the failing mall in December 2023 and initially planned a smaller Phase 1 demolition (JCPenney, Sears, and the movie theater) but ran into infrastructure problems and tenant closures that made the original plan unviable. "Phase 2 is complete demolition of them all," Mulhern said, arguing that a full teardown would better unlock outward-facing retail and large-format opportunities on the McGalliard corridor.
Mulhern presented cost and valuation figures and asked the commission for an additional PAYGO allocation. He stated a total project cost of $5,358,959, noted the commission previously approved $2,500,000 for Phase 1, and asked to stack a Phase 2 PAYGO of $2,835,008.56 on top of that arrangement. Jeff (city staff) clarified the PAYGO structure in response to commissioners’ questions: "They don't get paid until it creates the incremental tax increase," he said, noting the developer would only receive reimbursements after incremental property-tax revenue is generated.
Commissioners pressed Whole Property Group on tenant impacts, timing and downside risk. Mulhern said existing tenants are relocating within the Muncie market, not leaving the region, and that demolition would improve surrounding property conditions even if redevelopment took time: "Community wins day one when we tear it down," he said. Mulhern gave a range for demolition timing after the final tenant relocates and said some demolition work could begin as soon as the contractor is mobilized; he also said the last-tenant timeline could range from six months to two years depending on leases.
During the meeting a commissioner moved to approve Resolution 2026-01; after a second, Commissioners Prabilla, Rawlings, Waggly and Miller voted in favor and the motion carried. The resolution, as discussed on the record, authorizes negotiation of final terms and continues the PAYGO structure that reimburses developers only after incremental tax revenue materializes.
The commission did not reconcile minor differences in the financial figures presented during the meeting; Mulhern’s stated project totals and the requested incremental PAYGO amount on the record do not sum precisely in the presentation. City staff and the developer will negotiate final written terms and any clarifications necessary to reconcile figures before funds would be disbursed under a PAYGO agreement.
Next steps: staff and the board president were authorized to conclude negotiations and return with final paperwork. The commission did not vote to disburse cash up front; the PAYGO structure requires the developer to complete work and generate incremental tax revenue before reimbursement.
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