DOWNTOWN — With uncertainty still hanging over the fate of Water Tower Place, city officials believe a new strategy could protect the iconic shopping center from becoming another casualty of the pandemic-era retail slump — and potentially breathe new life into the Magnificent Mile.

Ald. Brian Hopkins (2nd) hinted at forthcoming changes during a March 26 town hall hosted by the Streeterville Organization of Active Residents. He noted that large vertical malls like Water Tower Place — once “wildly successful” — are now “past their prime.”

First opened in 1975 at 835 N. Michigan Ave., Water Tower Place was Chicago’s first indoor mall and quickly became a major draw for shoppers, anchoring the commercial character of the Mag Mile.

But the mall was hit hard by the COVID-19 pandemic, losing major tenants such as Mity Nice restaurant, the Foodlife food court, and its key anchor, Macy’s, which occupied over 300,000 square feet.

“That model of retailing is past its prime — and frankly, it’s not coming back,” Hopkins said. “That’s not to say urban retail centers like Water Tower Place can’t succeed. But there’s simply far more space than can be actively and sustainably used for retail today.”

At the same town hall, Hopkins confirmed that MetLife, which owns the property, intends to retain retail on the first three floors while converting the upper levels into office and medical office space.

“We think that will not only revitalize Water Tower Place, but ensure its success for hopefully decades to come,” Hopkins said. “I can’t imagine what would happen to this community if Water Tower Place went the way of Chicago Place and became a vacant white elephant.”

The proposed transformation comes as advocates of the Mag Mile hope to spark a broader revival along the famed stretch of Michigan Avenue, from the Chicago River to Oak Street. During the height of the pandemic, the corridor saw a 33 percent vacancy rate — a number that has since dropped to 26 percent, according to the Magnificent Mile Association.