February 05, 2005

Supercenter in Lodi

The company is planning on building a supercenter store in Lodi, California, but a major a stumbling block is the old building which will be across the street from the new store:

As a condition of the permit, the Supercenter's developer would be required to lease at least half of the existing Wal-Mart before the Supercenter can be built.

Now the city wants to rework the building permit to give the Supercenter's developer the option of selling or demolishing the existing store, with the intent that another retailer would reoccupy the property, Lodi leaders say.

A new building would go up if the existing store is razed, Hansen said. "It's not tearing it down and walking away," he said.

Giving developer Darryl Browman more options in the building permit could help ensure the existing property doesn't end up vacant, Hansen added. "My feeling is that we have to see if we can work more closely with the developer in re-tenanting the (current) building. We'll work out the right kind of language."

Browman owns most of the existing Wal-Mart shopping complex and is the developer for the proposed 245,157-square-foot Supercenter at Lower Sacramento Road and Kettleman Lane.

Herum urged the city to make sure Wal-Mart does find a retail tenant for the existing building before the Supercenter opens.

Posted by Bob on February, 5 2005 at 02:02 PM | TrackBack

Comments & Trackbacks
Kevin Brancato wrote:

Demolishing is an interesting twist.

Actually, Browman doesn't yet own the old walmart:

Wal-Mart spokesman Kevin Loscotoff said company officials are... hopeful the city will relax its leasing condition, because Wal-Mart plans to sell its existing building to developer Darryl Browman.

"We definitely understand how important the vitality of the space is to the city," Loscotoff said. "All along our intention was to sell that space to the developer, who has a great reputation of tenanting his buildings."

This really will put WM in the position of waiting for SOMEBODY ELSE to do something before with the space they can build the supercenter, which is truly bizarre.

As we've noted before, this lease requirement is extremely unusual, so much so that WM is challenging it:

Now Wal-Mart is challenging the city's wish that the old building have a new tenant. A San Francisco law firm representing Wal-Mart filed one of two appeals of the commission's December decision, claiming the restriction leaves Wal-Mart with no control over when the Supercenter will be built. The project's developer, Browman Development Co., is responsible for recruiting businesses to the old building.
That doesn't really say much, other than WM is passing the buck, but it seems that is how business is done in Lodi...

-- February 5, 2005 02:24 PM

Post a comment (HTML enabled):

Remember personal info?