CHAPEL HILL – A source tells WCHL that Dillard’s is leaving University Mall.

We also understand UMall is in negotiations with a non-retail store to replace it.

Currently Dillard’s is the only department store in Chapel Hill providing a sizable source of sales tax. It’s also one of the few places to buy clothing. Other stores include Roses and Julian’s, among others.

There was a proposal to relocate the Chapel Hill Public Library there, until Town staff recalculated and found it would have been more costly than they originally thought.

A Umall spokeswoman denied the claim and General Manager Peter De Leon has not returned phone calls.