The mall's two major anchors, Macy's and JC Penney, remain open but foot traffic has fallen off considerably.

Thursday night, the city's Redevelopment Agency board, made up of the mayor and City Council, voted unanimously to designate the mammoth property as a significant chunk of a new urban renewal project area.

City Manager Randy Fitts encouraged the RDA board to include some adjacent properties as well, reminding them that once an urban renewal area is established, it can be downsized but not expanded.

After haggling over various parcels, the RDA board set the boundaries to include the old Dee's restaurant on the southwest corner of Murray Holladay Road and Highland Drive. That vacant property is currently owned by the Walgreen Co.

Several small commercial properties northeast of that intersection were also added.

The new designation allows the city to launch a blight survey, and, if enough blight factors are identified, future tax dollars can be reinvested into the area to fund infrastructure upgrades.

The enclosed Cottonwood Mall, built in 1962, is one of several malls nationwide that are owned by Chicago-based General Growth Properties Inc.

So far, the company has stayed mum about the mall's future.

"We're still in the process of developing plans ourselves," said Jim Graham, public affairs director for General Growth. "We continue to weigh a range of options."

Private discussions with various stakeholders continue, Graham said, but "until we have a plan jointly arrived at, we can't say much."

Graham described the east-side property as having great potential and a great location.

"It could be put to better use than it is today," he said. "This [RDA] action gives the city more tools to improve that property and we're pleased about that."

cmckitrick@sltrib.com