Bakery's lease complicates RI Walmart plan


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Posted Online: Jan. 22, 2013, 5:57 pm
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By Eric Timmons, etimmons@qconline.com
The city of Rock Island has yet to agree on a relocation assistance package with the owners of Hill & Valley Bakery, a key property the city needs to clear the way for a new Walmart at Watch Tower Plaza.

The owners of the bakery have an option to renew their lease for five years and could choose not to move, which would complicate the arrival of Walmart to the shopping center site on 11th Street.

"We'd like to move, but there's a cost to move that's pretty significant," said Hill & Valley president Doug Davidson.

City officials are keen to keep the bakery and its 200 employees in Rock Island, butMr. Davidson said moving the bakery will be complicated and expensive.

George and Nancy Coin sold the former Nancy's Pies business to New York-based equity investment firm Circle Peak Capital in 2005 but still own the building that houses the bakery at 3915 9th St.

The Coins lease the building to Hill & Valley, and, under terms of the lease,Hill & Valley could decide to stay put for another five years, according to Mr. Davidson.

The Rock Island City Council approved a proposed $1.5 million agreement to buy the building from the Coins in December.

Jeff Eder, Rock Island's economic development director, expressed confidence that a relocation package would be agreed on soon.

The city is attempting to buy all the lots at Watch Tower to make way for development of a Walmart Supercenter.

The city also is working on relocation assistance packages with several other businesses that lease spots at Watch Tower.Hill & Valley is the largest business at the site, and the most complicated to move.

Mr. Eder said the city had to convince the board of Circle Peak Capital to move Hill & Valley.But if they decide against moving, it might be possible to redesign the Walmart site to leave the bakery in place.

"We'd have a lot of work to do to redesign the shopping center," he said. "It's a possibility, but it wouldn't lay out things ideally."

The city also could use eminent domain - a legal process governments can use to force an owner to sell a property - to take ownership of the bakery.

"It is an option," Mr. Eder said. "We don't want to use it."

To date, the city has agreed to spend more than $6 million to buy properties at Watch Tower. Still to come is the cost of demolishing buildings and the cost of relocation packages for some of the businesses that will move from the shopping center.



















 



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  Today is Tuesday, July 22, the 203rd day of 2014. There are 162 days left in the year.

1864 -- 150 years ago: Everybody is invited to go on a moonlight excursion next Monday evening on the steamer New Boston. The trip will be from Davenport to Muscatine and back.
1889 -- 125 years ago: The mayor and bridge committee let a contract to the Clinton Bridge company for a $1,125 iron bridge across Sears canal near Milan.
1914 -- 100 years ago: Injunction proceedings to compel the Central Association to keep a baseball team in Rock Island for the remainder of the season were contemplated by some of the Rock Island fans, but they decided to defer action.
1939 -- 75 years ago: The first of the new and more powerful diesel engines built for the Rock Island Lines for the proposed Chicago-Denver run, passed thru the Tri-Cities this morning.
1964 -- 50 years ago: The Rock Island Rescue Mission is negotiating for the purchase of the Prince Hall Masonic Home located at 37th Avenue and 5th Street, Rock Island.
1989 -- 25 years ago: Quad Cities Container Terminal is being lauded as a giant business boon that will save several days and hundreds of dollars on each goods shipment to the coasts. The Quad Cities Container Terminal is the final piece of the puzzle that opens up increase access to world markets, Robert Goldstein said.








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