Saturday, November 22, 2008

Walgreen’s at Ivy Market – Door One, Two, or Three

For over an hour Monday afternoon Roanoke City Council bantered about three options relating to the time extension for the Ivy Market Walgreen’s.
Vice-Mayor Sherman Lea exhibits the confusion of all as Brian Townsend trys to explain.
On October 23, Council tabled the resolution in order to better assess consequences the developer would undergo should the April 30, 2009, Phase One extension request result in default and/or the Phase Two completion date is not met.

This was the fourth extension to the performance agreement of November 18, 2004, which gave IMD $9 million of incentives over 15 years for two Phases. The opening of Walgreen’s along with Ukrop’s would be considered completion of Phase One. Additional retail space, parking, and infrastructure for a Phase Two with a completion date of November 18, 2009. was determined to be unattainable.
On voice vote the resolution was taken off the table. Mayor Bowers after some discussion with the city attorney, William Hackworth, entertained a motion to remove the original option from the docket. This motion passed.
This left two options before Council – Option “A” and option “B“. Option “A” would have reduced the $9 million of incentives to approximately $6.5 million assuming that Walgreen’s (Phase One) completes by April 30, 2009 with default of Phase Two. Option “B” would have extended the maximum yearly grant of $600,000 that IMD could receive out through the 15 years without completing Phase Two and would result in much less revenue for the city. If IMD did not meet the Walgreen’s completion date then default would result in no grant funds being honored.
The attorney for Bland Painter, III, owner of IMD was Neal Keesee, Jr., of Woods Rogers Attorneys. Keesee said that his client preferred Option “A” with amendments. This resulted in lengthy discussion between attorneys, client, and Council. Mayor Bowers attempted to table the resolution to give the City attorney, administration, and developer time to work it out. The motion to table failed. Council member Alvin Nash suggested that the December 1st deadline be extended to December 17th resulting in another motion to table which barely passed.
The resolution was taken off the table at the 7:00 PM meeting. According to Brian Townsend, Assistant Manager for Community Development, Phase One and Phase Two were “essentially decoupled” and that a Phase One only agreement will continue for the next 14 years upon the opening of Walgreen’s by April 30, 2009. In addition the agreement will only allow IMD to request one half of the revenue derived in the form of a grant request beginning July, 2010, for the remaining years. The resolution passed unanimously.
Townsend said, “if the City wants to contemplate an agreement for Phase Two [then] that will be its own agreement” and added that IMD had not yet purchased any of the Phase Two property.

Posted By Valerie Garner

Categories: Finance, Roanoke City Politics


Comments (1)

The Roanoke Free Press

April 17th, 2009 at 12:06 AM    

[…] If granted this will be the 5th extension for the contracted company, IMD. The original agreement was executed on November 18, 2004.  Read the recount of the October 23, 2008 Council meeting HERE followed by a very complicated discussion to extend the deadline for the Walgreens store opening to April 30, 2009 – that discussion at the November, 17 2008 Council meeting  is HERE. […]

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