The sweeping $112 million transformation of a fading mall in Marion, Illinois, was hailed as a model for public-private redevelopment. Now, less than a year after breaking ground, that same project—the state’s first STAR bond venture—is in turmoil as one of its developers faces mounting financial and legal trouble.
The mixed-use redevelopment was designed to turn a long-struggling retail site into a $112 million hub for shopping, entertainment and hospitality. When construction began in May 2025, Illinois Governor JB Pritzker called the 466-acre project a “bold plan to turn an old shopping mall into a world-class entertainment destination,” saying it would leverage public financing to create jobs, attract tourism and stimulate investment across Southern Illinois. The project was expected to generate 1,500 new permanent positions and nearly 5,000 construction jobs.
Backed by Illinois’ first Sales Tax and Revenue (STAR) bonds—a financing mechanism created to “promote, stimulate, and develop the general and economic welfare” of local communities—the project marked a new phase in statewide economic development. But reporting from Capitol News Illinois and the Illinois Answers Project now reveals that developer Jerry Barrass, who owns almost one-fifth of the land in the redevelopment area, is facing financial collapse that threatens the entire effort.
According to those reports, Barrass has been sued multiple times for millions in unpaid debts, and his portion of the property is under foreclosure. While his land was not slated for construction in the early stages, its eventual inclusion in the plan means a forced sale could require the city of Marion to commission a new feasibility study and seek updated state approval, as required by law.
Barrass is one of three partners leading the redevelopment alongside developers Rodney Cabaness and Jeremy Shad Zimbro. Cabaness and Zimbro have reportedly purchased Barrass’s 10% ownership stake in the project’s development entity and have assumed responsibility for construction. Yet, as the reports note, project ownership does not automatically include control of the underlying land, which may now be in dispute.
Nearly half of the project’s $112 million has already been spent, Capitol News Illinois and the Illinois Answers Project found. The outlets reported that Cabaness declined to provide letters of intent from major retailers that would anchor the site. Meanwhile, a bank involved in the financing has sued Barrass.
The developers and state officials appeared unaware of the financial issues until recently. “I know very little about his personal finances,” Cabaness told reporters in August, adding that he learned of the lawsuits only when contacted by journalists.
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