The mall now has a 40% vacancy rate, including missing anchors Service Merchandise and Montgomery Ward, and other tenant vacations such as the Gap and Gap Kids.

Now, the new owner, Los Angeles-based Namco, wants to partner with the township to install a $20-million water park.

If the township agrees, it would buy bonds and foot the bill to build the multi-slide park, which would also include a wave pool and lazy river, all inside the former Montgomery Ward that closed along with the rest of the company's stores years ago.

The indoor park would be the first of its kind in Michigan, according tolocal real estate experts.

Of course, in this economy and with the current retail situation at the mall, the township isn't going into the deal with its eyes closed, says Robert Seeterlin, director of fiscal and human resources for the township. He tells GlobeSt.com the township is performing a feasibility analysis, which should be ready for perusal by Jan. 27.

"We want to make sure the numbers make sense, that it wouldn't become a negative drain on the township," Seeterlin says. "We want to examine all liabilities, and make sure there would be a positive side of the equation."

A consulting firm familiar with water park operation is assisting the township on the study, he says.

Under the deal, Waterford would build the park for about $20 million, and operate it for about $1.4 million a year, Seeterlin says. The township would lease the space from Namco and use maintenance and other services, but at a fair negotiated price, Seeterlin says.

If the township approves going out for bonds, residents will have 45 days to petition to put the matter on a ballot, Seeterlin says.

"It's key that the residents don't pay for this park," he notes. Fees for theparks use must sustain the complex, or the deal would be disaster for analready struggling region, Seeterlin explains.

"Property values are declining in the area, and stores are closing. We'reexperiencing a tough retail market. We need to pay attention to future economic strategy," Seeterlin says.

The hope is the water park will draw families, especially with childrenbetween 6 to 16 years old, Seeterlin says.

"We want to make this a destination place, a real family recreation center. Hopefully, the stores will also benefit," he adds.

Namco had previously proposed a skating rink and a hotel for the site, but those ideas were ruled unfeasible, Seeterlin reports.

The current anchors of the 43-year-old mall include Sears, Marshall Fields, JCPenney and Kohl's.

The company is also redoing a 25,000-sf portion of the mall, a sectionattached to Marshall Fields, to see what redevelopment efforts would looklike, Namco says. This redevelopment will cost about $1.5 million.

The company has torn down a three-screen theater outside the mall, and plans to tear down another out-building soon.