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 Wednesday, May 22, the 142nd day of 2013. There are 223 days left in the year. 1863 -- 150 years ago: Large quantities of ice from LaCrosse and Lake Pepin are beingshipped on ice boats, towed by steamers to St. Louis and points below. 1888 -- 125 years ago: With the Mississippi River at 18 feet above the low water stage,Rock Island is waging a valiant fight to keep the river from flooding the entire city. 1913 -- 100 years ago: Approval has been given by the city commission for paving 45thStreet between 7th and 11th Avenues. 1938 -- 75 years ago: Herndon Wright, of East Moline, has won the discus-throw title, by aheave of more than 140 feet, to set a new high school record at Champaign. 1963 -- 50 years ago: With the Selective Service Law recently extended by Congress forfour more years, Mrs. Hazel Doris reminded young men that they must register withinfive days after attaining their 18th birthday. 1988 -- 25 years ago: Over 500 Quad-Cities area retired volunteers were honoredrecently for their community services at a Retired Senior Volunteer Program luncheonat Palmer Auditorium in Davenport. Guest speaker, William Moffitt, director of productengineering of Deere & Co., spoke about leadership and stressed the importance ofcommunity volunteers.