Clock could start today on development plan
WAYNESBURG – The clock could start as early as today on a plan to develop more than 100 acres of Greene County-owned property that could soon become a large retail-shopping complex. The county commissioners placed on their agenda for today’s meeting a real estate purchase option agreement between the county and McHolme/Waynesburg Limited Partnership, DeBartolo Property Group and McHolme Construction for 115 acres of property near Interstate 79 in Franklin Township.
It has taken almost six months for the county to get to this point, after officials from DeBartolo and McHolme came to the county in December to make their pitch to purchase and develop the property. According to Commission Chairman Dave Coder, two local companies conducted appraisals and the developers already have surveyed the site.
Under the agreement placed before the board, the developers would have six months – and no more – to find suitable tenants for a shopping center. Once those tenants have been identified and signed on, the developers will then go forward and purchase the property at $5,800 an acre, or $667,000, Coder said.
The agreement states the developers will pay the county $10,000 initially, and the county grants DeBartolo and McHolme the exclusive rights and option to purchase that property.
Robert McGurk, senior vice president of development for DeBartolo, said a site plan already is being developed and two anchor tenants have been considered for the location. He told the commissioners and audience that he will attend the International Conference of Shopping Centers in Las Vegas next week and plans on “marketing that property fully” while he is there.
DeBartolo had originally tendered an offer of $5,600 an acre, but local appraisers came back with amounts between $5,700 and $5,790 an acre. McGurk said he had no problem increasing the offer to compare with those appraisals, and he also said he sees no problem with meeting the six-month deadline written into the agreement.
“That will be plenty of time to get people aboard,” he said. “We don’t want to waste your time.”
He admitted that the site preparation costs will be “huge,” estimating it could cost more than $5 million alone for excavation and another $1 million just to bring all the necessary utilities to the development. McGurk assured the commissioners that the developers are trying to make the numbers work for all parties involved.
“We want to put together a deal here, but we have no intention of tying this property up for the next several years,” he said. “There is no need and no use for that.”
Coder said the developers plan to work within the current five-year tax abatement model used in the county, but they also intend to pay money up front over the first five years to help with infrastructure development at the site.
The Central Greene School District and Franklin Township supervisors must agree to the financing package for any potential development before it can move forward, but the developers can meet with those governing bodies if the commissioners approve the agreement this morning.
At least one commissioner, Scott A. Blair, will not vote in favor of the deal, and he made his opinion quite clear to McGurk on Wednesday.
“I respect the work you have done and I appreciate the work you have done, but I don’t subscribe to the fact that this property will serve the taxpayers,” he said. “It may be better down the road, but right now I vote no.”
Blair even voted against the motion to put the agreement on today’s agenda.
Coder plans to push the agreement forward, taking the lead within the county in meeting with developers to bring this kind of project into Greene County. Doing so, he said, would keep some of the “green” spent in neighboring counties in Greene.
“The developers have already done an incredible amount of due diligence and engineering work up front and they are also willing to put money up front for infrastructure and work within the current tax abatement system,” he said. “No one spends that kind of money for nothing. This is definitely a win and I am confident it will proceed.”
It appears the pivotal vote will lie on the shoulders of Commissioner Farley Toothman, who said Wednesday morning he had not seen the agreement and planned to read it carefully Wednesday night before the matter comes to a vote this morning. He said the solicitor’s office already has reviewed the agreement, and attorneys from both sides will have to work up a final document if the deal is approved.
According to the agreement, the buyer intends to develop and use the property principally for retail stores, restaurants, hotels and uses related to the support of a retail store development.
Wal-Mart has long been associated with any large-scale retail development, though no one would confirm Wednesday whether the company has committed or will commit to this project.