Hy-Vee, Wal-Mart stumble on new stores

Plans for two hyped grocery store plans in Springfield are on pause and representatives of the chains say a rezoning appeals case and design delays are to blame.

Both Wal-Mart Stores Inc. (NYSE: WMT) and Hy-Vee Inc. had secured hard-fought Springfield City Council rezoning measures associated with their store plans against stiff opposition, but those victories have not yet resulted in development.

Wal-Mart in waiting
Erica Jones, senior manager of communications with Bentonville, Ark.-based Wal-Mart Stores, said no movement on a new store could take place until the appeals process is complete related to a referendum-petition lawsuit filed by those opposed to the megaretailer’s plans. That process could drag into the fall, depending on when oral arguments are scheduled, according to an attorney representing the plaintiffs.

“We’re just waiting on a ‘go’ or ‘no go,’” Jones said.

Bryan Wade, a Springfield real estate and development attorney with Husch Blackwell LLP, is representing plaintiffs Lynn Meyers and Charles Booth, who are appealing a circuit court decision. Meyers and Booth signed the referendum petition calling for a citywide vote on the controversial rezoning measure and were part of a group of residents who unsuccessfully tried to intervene in the referendum case in July.

“We hope the Court of Appeals will allow us the opportunity to state the merits of the case,” Wade said.

On July 23, Missouri circuit court Judge Gerald McBeth, of Nevada, ruled the referendum petition seeking to block the rezoning of center city property at the southwest corner of Grand Street and Campbell Avenue would not head to a public vote, just days after he disallowed residents including Meyers and Booth from joining the lawsuit. That paved the way for an appeal, which was filed Aug. 19 in the Missouri Southern District Court of Appeals.

The petition sought to overturn a February City Council decision to rezone roughly 6 acres at 444 W. Grand St. and 427–515 W. Normal St. to general retail from a residential district.

Jones said Wal-Mart’s purchase of the properties around the center city intersection are pending a rezoning decision. Tom Cederblom, pastor of Life 360 Church, a potential seller to Wal-Mart and defendant in the case, did not return calls for comment.

A chief concern of groups opposed to the rezoning measure is that traffic in the area would be hazardous for nearby residents and pedestrians.   

On Jan. 13, Wade filed a brief arguing the ruling should be overturned. The 46-page document argues three main points: Booth and Meyers should have been permitted to intervene in the case; referendum petitions should apply to zoning cases; and the citywide vote sought in the petition should have moved forward.

City Attorney Dan Wichmer said he expects the city to submit its response by Feb. 12. Wichmer said he was not surprised an appeal was filed in the case.

“I think they knew going into the hearing that day that given the fact they were so late in trying to intervene that they would be looking at an appeal,” he said.

Wade said after the court receives responses to the appellant’s brief, his clients would respond, and then the court would schedule oral arguments.

Hy-Vee’s holdup
In November 2012, council approved plans to rezone 10.5 wooded acres on East Sunshine Street to general retail from single-family residential despite pleas from 21 nearby residents, who opposed the plans during the public hearing.

Chris Friesleben, a spokesman for Des Moines, Iowa-based Hy-Vee, said construction of an 85,000-square-foot, $12.7 million store at the 2100 block of East Sunshine Street wouldn’t begin before October. CJW Transportation Consultants LLC had projected in February 2013 the store’s construction would be complete by spring 2014.

“We are still developing the construction drawings for our second Springfield store; there’s much design work yet to be completed. As such, it’s too early to provide a definitive timeline for construction,” Friesleben said via email, adding just last week the store’s construction was moved back until the start of its fiscal year in October.

“It is not uncommon at all to go through a number of design changes before construction begins.”

Kelly Short, project engineer with CJW, which is contracted to perform civil engineering on the project, said he believes other Hy-Vee development plans across the country are slowing progress in Springfield.

“They had several other stores going under construction last year and this one is, I believe, the next one on the list,” Short said. “I think it was a corporate decision to delay this one a year, so they weren’t building too much at once.”

He said Hy-Vee’s internal construction division oversees new store development, including store design.

While seeking council approval in October 2012, a Hy-Vee representative said the company would make concessions with neighbors by erecting a 6-foot fence on Washita Street, increase the buffer zone and save existing trees on the property. Peter Hosch, assistant vice president of real estate, said Hy-Vee planned to hire 100 full-time and nearly 300 part-time workers for the store.

Hy-Vee has since purchased the land from Jewell Schweitzer. Located west of the Commerce Terrace office complex, the property has a taxable appraised value of $2.2 million, according to Greene County assessor records.

Short said he expects CJW to file permits for site grading by February for a target to begin construction on the parking lot, stormwater and utilities infrastructure in April.