After years of sitting mostly vacant, Hillsboro’s outlet mall is finally coming down. On Friday afternoon, June 6, city officials and representatives from Glaser Retail Partners gathered to mark the start of demolition, which was the first visible step in a long-planned effort to revitalize the 43-acre site.
City Manager Megan Henderson said that the outlet mall’s future has been top of mind for residents for years — a reality made clear during the city’s 2021–22 strategic planning process. “When we asked people to tell us what the most important priorities were for the future of Hillsboro, they told us their absolute top priority was to fix the streets,” Henderson said. “But number two — a very, very close number two — was to tear down or redevelop the outlet mall.”
The property, which once drew shoppers from across the region, had become a symbol of stagnation. “‘Fix the outlet mall, make it something vital again for the future of Hillsboro’ was right at the top of what citizens asked us to do,” Henderson said.
She admitted there was hesitation to even include it in the city’s official plans at the time. “We were almost afraid to put it in the plan because it seemed like such a big, insurmountable obstacle,” she said. “It had been sitting here, slowly deteriorating for so long.”
But then came a surprise phone call. “About six months later, I got a call from this off-the-wall guy saying, ‘I think I want to buy the outlet mall,’ and I said, ‘Good luck,’” she recalled.”
A couple of weeks later, he was in Hillsboro saying he had the property under contract and asking if the city would partner in redeveloping and making something happen.”
That call led to a partnership with Glaser Retail Partners, a firm with experience revitalizing commercial properties. “Because we knew we had the support of our citizens, and because we were tired of being defined by a run-down relic of former glory days, we knew it was time for Hillsboro to move forward,” Henderson said.
She praised the collaboration with Glaser, describing it as grounded in shared vision and realism. “We can feel confident that as we move into redevelopment, what will happen is going to make sense — not just what we wish made sense, but what actually makes sense for the new Hillsboro and the market we’re in today.”
Henderson also credited the city council and mayor for their leadership in backing the project and thanked local contractors preparing to carry out the demolition. “We’ve put a lot of energy and excitement into this,” she said. “We’ve put in some city dollars, and we’re really looking forward to the next step.”
For Brian Glaser of Glaser Retail Partners, the journey began with a blunt conversation with city administration.
“I walked into the office, sat down and said, ‘I’m under contract on this mall, and you’ve got a problem. I don’t want to have a problem. It’s going to take a lot of work to figure this one out,’” Glaser recalled.
But as he walked out the door that day, Henderson offered a single word that stuck: optimistic.
“That’s become a buzzword for us,” Glaser said. “A hundred phone calls later, we still end every conversation with, ‘I’m optimistic.’”
That optimism turned into visible action Friday. “Thanks to Megan, your team, your council, and your optimism, we were able to do what we did today, which is tear down this mall,” Glaser said.
The demolition currently underway will clear about 75 percent of the former outlet mall buildings, with the remaining 25 percent to be preserved and reconfigured as part of the redevelopment. The transformation marks a major step forward on the property purchased by Glaser Retail Partners from previous owner Craig Realty Group.
Shortly after that sale, the City of Hillsboro stepped in to purchase just under 31 acres of the site, giving the city a meaningful stake in the project’s future direction. At the time, Henderson said city ownership was not only essential to move the project forward, but would also ensure Hillsboro had a voice in shaping what comes next.
To help support the redevelopment financially, the city established a Tax Increment Reinvestment Zone (TIRZ) in 2023, with Hill County also signing on. The designation allows increases in property tax revenue — generated by the eventual rise in the site’s value — to be set aside in a dedicated fund for reinvestment in the development. For the next 10 years, only tax revenue from the property’s increased value will go into the fund, while taxes from the current base value will continue flowing to the city and county as usual. After that period, all the tax benefits from the higher property value will return to general funds.
In addition to future property tax gains, the city has emphasized that the site’s revitalization will bring new jobs and increased sales tax revenue — funds that will help support infrastructure improvements like better streets.
The first phase of the project will focus on the highly visible 12 acres fronting Interstate 35, where Glaser plans to bring in recognizable restaurant and retail brands. Development of the remaining acreage will follow over time, with Glaser retaining the right to repurchase portions of the city-held land as specific tenants are identified.
The city, for its part, intends to hold on to about half of its acquired land until businesses that are both highly desired and beneficial to the community can be secured.
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