City Beat: Council turns to voters on Wal-Mart zoning

If Bentonville, Ark.-based megaretailer Wal-Mart Stores Inc. (NYSE: WMT) is to move forward with plans to build a fifth Neighborhood Market in Springfield, it is going to need a nod from city residents this summer.

When the contentious city rezoning measure hits the Aug. 6 ballot, the vote will conclude months of debate.

In February, Springfield City Council voted 5-4 to rezone roughly 6 acres at 444 W. Grand St. and 427–515 W. Normal St. to general retail from a residential district to make way for Wal-Mart’s plans to build a 41,000-square-foot store. In April, the city clerk’s office certified 1,808 signatures submitted from a diverse group of opponents calling for a repeal of council’s Feb. 25 rezoning decision.

On May 20, Springfield City Council members voted 6-2 against a repeal of its February vote, statutorily sending the issue to residents.

Councilman Jerry Compton held his support of the zoning change.

“I think we voted correctly the last time. I think retail zoning is appropriate for that area,” Compton said.

In August, voters will be asked to affirm a repeal of the retail designation that would pave the way for Wal-Mart to build its Neighborhood Market at the southwest corner of Campbell Avenue and Grant Street. Essentially, the fate of the store now rests in the hands of the people.

Wal-Mart currently operates four grocery-centric Neighborhood Markets, five Supercenters and two Sam’s Club stores in Springfield.

Councilmen Doug Burlison and Craig Hosmer were the only council members who voted to repeal the zoning change. Councilwoman Cindy Rushefsky was absent from the meeting.

“I am still under the firm belief that the proposed project is of too high an intensity for this particular parcel,” Burlison said. “It’s going to be problematic with traffic.”

The opponents are a coalition comprising members of Stand up to Wal-Mart, Citizens Advocating for Responsible Development, Stop the Neighborhood Market Project, Save Calvary, area residents and university students. At the May 20 meeting, City Attorney Dan Wichmer said the city charter requires council repeal the rezoning in accordance with the initiative petition or send the issue to voters. After the repeal vote failed, council members unanimously voted to put the matter on the Aug. 6 ballot. The estimated cost of the election is $80,000 to $100,000.

Calvary Temple/Life 360 church and several residents have agreed to sell their properties to Wal-Mart, but the sales are contingent upon the developers securing the zoning change to a general retail district. With petitioners gathering enough signatures for a repeal, the zoning will remain in limbo until the Aug. 6 vote.

In a February public hearing on the zoning change, several business owners, including Erick Taylor of Price Cutter, said they felt a center city Walmart store would be detrimental to downtown. Taylor has said a Walmart store within a mile of the regional grocer’s Bistro Market would threaten the viability of the downtown store. Taylor did not return calls for comment by press time.

Spokespersons for Citizens Advocating for Responsible Development and Stand Up to Walmart said opponent groups would be meeting to develop a campaign strategy.

In a statement issued to Springfield Business Journal, Wal-Mart spokesman Daniel Morales said customers consistently vote with their pocketbooks: “Unfortunately, some of the louder voices in this discussion don’t represent the majority opinion. The customer voice is clear and demonstrated every time we open a new location as thousands of local residents show their support by shopping our store.”

Morales declined to say if Wal-Mart would spend money to promote its position regarding zoning status ahead of the ballot issue.

Heer’s incentives
Springfield Economic Development Director Mary Lilly Smith introduced a bill to allow developers Heer’s Luxury Living LLC to pay attorneys’ fees to work with city staff to determine available incentives for redevelopment of the former Heer’s department store.

“What you have before you tonight is what we hope is the first step in the redevelopment of the Heer’s building,” Smith told council members at the meeting.

The city would technically hire the law firm, but the developer would cover the bill, Smith said.

“We don’t have all the staffing we need to establish one of these complex financing protocols, and so we engage Gilmore & Bell, attorneys located in Kansas City, who provide economic development expertise for us,” Smith said. “The developer will make a down payment of $7,500 with the city. (Gilmore & Bell PC) will work with me to develop a term sheet that we will bring back to you hopefully in a couple of months. That will be followed by our redevelopment agreement.”

Jim Nichols, a co-owner of Heer’s Luxury Living and CEO of Lee’s Summit-based development firm Dalmark Development Group, said the developers are in the early stages of planning a $15 million renovation of the Heer’s property. The vision, he said, is to turn the former department store into 80-90 market-rate rental apartments.

According to DalmarkGroup.com,  the company, which was founded in 2003, has 85 employees and manages 21 properties. Its portfolio includes the renovation of the Hyde Park Hotel in midtown Kansas City. Delmark transformed the nine-story structure into the Hyde Park Apartment with the help of Federal Low Income Housing and Historic Rehabilitation tax credits. Nichols, who has more than 25 years of commercial development and property management experience, said he plans to utilize historic tax credits with the Heer’s renovations. He said once an incentives package is in place, construction could begin within six months.

Nichols said there would be 8,000 to 12,000 square feet available on the first floor for retail, and he said he’d like to secure at least one restaurant tenant.

“We anticipate construction would take 12 to 14 months. Within the next 24 months, the doors should be open,” Nichols said.

Shawnee, Kan.-based Straub Construction Co. Inc. is tabbed as general contractor, but Nichols said there would be local involvement. The design team from St. Louis-based Rosemann & Associates will be led by Drury University graduate Jarret Cooper, and Missouri State University graduate Zac Nichols is Dalmark’s project manager. Nichols said Dalmark also would utilize Springfield-area engineers and subcontractors on the project.