The Rock Island City Council on Monday approved selling Watch Tower Plaza for $4.5 million to a development company acting on behalf of Walmart.
In November, Rock Island Mayor Dennis Pauley announced Walmart was interested in building a new retail center at the site.
The city is buying Watch Tower and nearby properties to clear them and sell them to Price Properties LLC for the development of a new Walmart Supercenter, but still has to complete the purchases.
Rock Island City Manager Thomas Thomas said the development along the 11th Street corridor will be an economic shot in the arm for the city. Ideally, he said, he would like to have all the properties cleared and turned over to Price Property LLC by June 2013.
"If I can make that June window, we may make the time frame of having a Super Walmart by the fall of next year," Mr. Thomas said. "We're aggressively trying to get this done."
In November, the city council agreed to buy nine properties for a total of $4.8 million.The total cost to Rock Island is expected to be $10 million to $12 million, according to city officials.
Aldermen have said they believe it's a price worth paying to bring a large retailer to town.
"I see it as an enhancement to the community," he said. "Conservatively, we're talking about a sales tax of $1.4 million a year and talking (additional) property taxes to the city of $300,000 per year.
"Speaking conservatively, we're talking about $34 million in revenue over a 20-year period," Mr. Thomas said. "So the investment we're making in property acquisition and development of the land we're more than getting that money back."
Mr. Thomas said Monday's council action gives him the authorization to sign an agreement between Walmart and the city when he is prepared to do it.
Mr. Thomas said the city is helping property owners at the site, such as Black Hawk College and State Farm, with relocation.
"We put incentives for relocations based on staying in the city of Rock Island," Mr. Thomas said. "If they want to relocate out of the area, there's no relocation assistance.
"There's a lot of moving pieces," Mr. Thomas said. "We've got the majority of the property. We're moving ahead with Black Hawk and State Farm. There's one or two agreements we're still working on."
Mr. Thomas also said Walmart is considering retaining the Black Hawk statue at Watch Tower Plaza. If that doesn't work out, Mr. Thomas said, he wants to work with the council to move it to a prominent place in the city.
In other business, aldermen approved a five-year labor contract with the Fraternal Order of Police Lodge 57 which represents police officers and detectives. The contract is backdated to March 21, 2011, and ends March 27, 2016.
According to the city, the agreement provides for a general wage increase of 2 percent retroactive to April 2, 2012; a 2.75 percent increase on April 1, 2013; a 3 percent increase on March 31, 2014; and a 2.5 increase on March 30, 2015.
Officers now also can live within a 30-mile radius of the city, an expansion from the former 15 miles, said city administrative services director John Thorson.
Jason Foy, Rock Island interim police chief, said the agreement is, "good for everybody, the city and the department."
Today is Monday, Sept. 1, the 244th day of 2014. There are 121 days left in the year.
1864 -- 150 years ago: We are informed by J.H. Hull that the reason the street sprinkler was not at work yesterday settling the dust on the streets, was because one of his horses was injured. 1889 -- 125 years ago: Bonnie McGregor, a fleet-footed stallion owned by S.W. Wheelock of this community, covered himself with glory at Lexington, Ky, when he ran a mile in 2:13 1/2. The horse's value was estimated as at least $50,000. 1914 -- 100 years ago: Troops are pouring into Paris to prepare for defense of the city. The German army is reported to be only 60 miles from the capital of France. 1939 -- 75 years ago: The German army has invaded Poland in undeclared warfare. Poland has appealed to Great Britain and France for aid. 1964 -- 50 years ago: Publication of a plant newspaper, the Farmall Works News, has been launched at the Rock Island IHC factory and replaces a managerial newsletter. 1989 -- 25 years ago: Officials predict Monday's Rock Island Labor Parade will be the biggest and best ever. Last minute work continues on floats and costumes for the parade, which steps off a 9:30 a.m.