The Rock Island City Council on Monday will consider an agreement to sell Watch Tower Plaza for $4.5 million to a development company acting on behalf of Walmart.
Mayor Dennis Pauley announced in November that Walmart was interested in building a new retail center at Watch Tower. The city is buying Watch Tower and nearby properties in order to clear them and sell them to Walmart but still has to complete the purchases .
Once that happens, the city will pay to tear down the buildings and prepare the site before selling it to Price Properties LLC for thedevelopment of the new Walmart Supercenter.
The cost to the city is expected to be $10 million to $12 million, according to city officials. If the $4.5 million sale is finalized, the city could take a loss of up to $7.5 million on the agreement with Walmart.
However, aldermen say that's a price worth paying to bring to town a large retailer that's expected to generate $1.3 million in sales tax revenue annually.
"I think the return on our investment is going to be significant as far as the future growth of the city is concerned," said Ald. Terry Brooks, 1st Ward.
The city council will vote Monday on the $4.5 million agreement with Price Properties for the sale of 20 acres at Watch Tower. Price Properties is linked to Walmart, said Mayor Pauley.
Aldermen approved $4.8 million in purchase agreements for a number of properties at Watch Tower and are still waiting on agreements for a number of other parcels.
Mayor Pauley said construction on the new Walmart could start next spring and the store could be open by next Christmas or in early 2014. He hopes the store will encourage further development and help Rock Island compete with neighboring cities that have stronger retail sectors.
The city council meets at 6:45 p.m. Monday at Rock Island City Hall,1528 3rd Ave.
Today is Monday, Oct. 20, the 293rd day of 2014. There are 72 days left in the year.
1864 -- 150 years ago: The store of Devoe and Crampton was entered and robbed of about $500 worth of gold pens and pocket cutlery last night. 1889 -- 125 years ago: Michael Malloy was named president of the Tri-City Stone Cutters Union. 1914 -- 100 years ago: Dewitte C. Poole, former Moline newspaperman serving as vice consul general for the United States government in Paris, declared in a letter to friends that the once gay Paris is a city of sadness and desolation. 1939 -- 75 years ago: Plans for the construction of an $80,000 wholesale bakery at 2011 4th Ave. were announced by Harry and Nick Coin, of Rock Island. It is to be known as the Banquet Bakery. 1964 -- 50 years ago: An application has been filed for a state permit to organize a savings and loan association in Moline, it was announced. The applicants are Ben Butterworth, A.B. Lundahl, C. Richard Evans, John Harris, George Crampton and William Getz, all of Moline, Charles Roberts, Rock Island, and Charles Johnson, of Hampton. 1989 -- 25 years ago: Indian summer is quickly disappearing as temperatures slide into the 40s and 50s this week. Last week, highs were in the 80s.