[NOV. 16, 2005]
The Lincoln City Council entered full discussion
on Monday evening on matters revolving around reaching agreements
that would bring a Wal-Mart Supercenter to town. City attorney Bill
Bates explained details of the plans and the minor modifications
that have taken place in the last week and then turned the matter
over to open discussion.
On hand to answer the aldermen's questions were R. Keith King, a
Wal-Mart representative; Allen Oertel of Crawford, Murphy and Tilly,
Springfield, the engineering firm that is handling property
development plans; and Troy Pudik, a Peoria lawyer representing
Wal-Mart for this site.
There are three components that are all tied together for the
process to proceed:
A development agreement
Annexation into the city
Final plat approval
In the agreement the city would return to Wal-Mart all sales tax
that exceeds the current four-year average (the 2005 year will be
added to the average at the city's request), up to $600,000.
The 0.5-cent non-home-rule sales tax is not included in this
arrangement.
Also, sales tax gained through the Murphy Oil Station that is
anticipated to go in on the corner on Lot 2 would not be included in
the reimbursement.
In the agreement Wal-Mart offers to do all of the sewer, water
and roadway infrastructure improvements that are needed to build on
the property and then some.
The route that the sewer line runs puts two manholes under
pavement of the proposed Wal-Mart property. The agreement addresses
this issue. Wal-Mart agrees to pay for the repaving if the sewer
must be accessed at either location in the future for repairs.
Wal-Mart is working with the Illinois Department of
Transportation on meeting all state roadway regulations. Wal-Mart
will be responsible for the following roadway changes:
Right turn lane for eastbound traffic off Route 10 at
Malerich Drive
Left turn lane for westbound traffic off Route 10
They will also construct:
North-south extension of Malerich Drive
Stuart Drive to allow Illini Bank complex access to Route 10
East-west Herndon Drive
Wal-Mart will also be running new potable water supply lines that
will benefit the subdivision and its future growth. They will
install a 12-inch line that runs from Fifth Street northward and to
the west side of their property.
Alderman Verl Prather said that he thought it would be important
for the public to understand how Wal-Mart arrived at the amount they
have requested for reimbursement and just how the developments that
they will do will add to the commercial value of the lot.
Oertel basically said that they took the difference of all the
infrastructure costs for the development, new sewer and waterlines
that benefit the whole subdivision, and subtracted the cost of the
three drives that must be added to meet city ordinances.
"The vast majority of the improvement costs are for public
roadway improvements," he said.
The improvements create lots that will cost a bare minimum for
new businesses to come in, he said.
When Alderman Benny Huskins asked about construction work for
local workers, King said that their bid winners have commonly used
local contractors to get the work done.
Additionally, the city would gain some valuable commercial
property. Wal-Mart would be purchasing property that will have 26
excess acres. Wal-Mart would give this land to the city. The city
can develop, sell or even to give it away, as was done with Sysco.
There are limitations on what can be done on that property, which
protects the business interests of Wal-Mart. It would be still be
commercially developable and a desirable property for noncompetitive
types of businesses, such as offices. If sold, the money would be
paid on the $600,000 reimbursement.
Beyond the reimbursement of $600,000 paid out of increased sales
tax income, the city's only other obligation in the development
agreement is to upgrade the area sewer lift station. The Zion lift
station, which serves to pump sewage from that area to the sewer
plant, is already in the process of being upgraded and must be done
whether Wal-Mart goes in or not. Wal-Mart stipulates for it to be
completed by Dec. 31, 2006.
Other deadlines defined in the agreement:
Wal-Mart must purchase 69-plus acres, which includes an
excess 26 acres, by Dec. 31, 2006.
City and Wal-Mart must sign the development agreement by
Dec. 31, 2006.
Wal-Mart must begin construction by Dec. 31, 2008.
The above are just maximum dates when those objectives must be
completed. Wal-Mart asked for the city to be ready to complete the
development agreement and approve the final plat next week, Nov. 21.
By all evidences they are ready to run with it when the agreement
and final plat are approved, Bates said last week.
Last night King said that if the agreement and plat are approved,
their architects are ready to start work next week. Then they would
get permits and go out for bids. After that their store planning
would begin.
