The city of West Des Moines will be working with a new developer on the redevelopment of the Valley West Mall site after a previous developer didn’t reach a deal to acquire the mall.

The Business Record has learned that the mall was put back on the market and that at least four development groups submitted bids to buy the 60-acre site. 

Brokerage firm CBRE has been marketing the mall property and Todd Millang, senior vice president for the firm, confirmed that the mall went out to bid again and that “we are working through that process.”

Millang said that hopefully a group will be selected soon and the due diligence process can begin.

He declined further comment.

Ryan Moffatt, community and economic development director for the city of West Des Moines, said the city is aware that at least four bidders have made offers and that an announcement was expected soon.

Moffatt also declined further comment.

The Business Record also learned that the previous developer, ATI Group, was among those who submitted a bid but weren’t selected to move forward.

The news that the mall went back out for bid comes about a month after the Business Record learned that a proposal by ATI Group to redevelop the mall site hit a roadblock after a deal to buy out JCPenney’s lease stalled.

A deal with the retailer did not materialize and ATI’s period of due diligence expired.

ATI Group told the Business Record last month that the deal was dead and would not be moving forward, but West Des Moines Mayor Russ Trimble was adamant that a deal needed to be reached, saying it is critical to the city and to stop the mall property from falling into further disrepair. 

Neither Millang nor Moffatt would comment on who the latest bidders might be, but ATI Group said they had rebid on the project and learned Tuesday they were not selected, meaning a new developer will begin their period of due diligence and negotiations with the city.

ATI went under contract for the 865,000-square-foot mall in August 2025 and spent about nine months in talks to finalize details of an agreement to redevelop the site for mixed use.

The two-story mall at 1551 Valley West Drive opened in 1975 and flourished with three anchor stores until Jordan Creek Town Center opened in 2004 and retailers began to follow shoppers to the new retail hub.

Valley West has seen an 80% reduction in assessed value since the height of its activity in 2005. Online records show an assessed value of $19.8 million. The mall has 138 tenant spaces, but only about 18 are occupied.

The mall went on the market in February 2025, three years after it entered foreclosure. It was placed in receivership after the mall’s owner, Minneapolis-based Watson Centers Inc., failed to make loan and other payments totaling nearly $3.5 million to U.S. Bank.

The West Des Moines City Council had already taken action to set the stage for redevelopment.

In June 2024, the council rezoned the mall property for mixed use. In October 2025, the council designated the site and the area around it as an Urban Renewal Area.

In another step to facilitate the redevelopment of the mall site, the city council approved an amendment to the Valley West Urban Renewal Area in late April.

The city anticipates providing incentives not to exceed $110 million to facilitate the redevelopment of the site, with the incentives being spread out over the estimated 10 years it would take to build out the redeveloped site.

Related story: West Des Moines not giving up on Valley West Mall redevelopment