Update: The Journal Sentinel is saying the proposal is “on hold.” I hope they’re right. The Business Journal says Walmart is “backing off.”
The Walmart deal is dead.
Last week, the city was told that Walmart/Gatlin Development decided not to extend their contract with Innovations Park/Briohn Co. to purchase a parcel of land necessary for the project.
City Attorney Joseph Murphy informed the Community Development Authority of the news Monday.
The deal fell apart apparently because of the cost of environmental cleanup of the Innovations Park property, and Walmart and Innovations Park could not come together on a purchase price for the land.
If you recall, the Innovations Park property sits to the west of 11th Avenue between Davis and Carroll Avenues, and it was to be combined with the city-owned parcel along Chicago Avenue to comprise the more than 10 acres Walmart was seeking for its development.
In November, the South Milwaukee City Council agreed to sell its 3.6-acre parcel to Gatlin Development for $500,000, and Walmart remained in negotiations with Innovations Park for the remaining 6.5 acres.
Those talks are now off, bringing this deal to a disappointing end.
I say “disappointing” because the project died before it ever really lived. The city never got a formal site plan and, while it did have a signed purchase agreement with the developers, it was contingent on the sale of the Innovations Park property.
I heard a lot of positive feedback on the proposal, and the city’s negotiations with Walmart appeared to be quite positive and productive. But now the site may be vacant for years, especially in this economy.
Disappointing indeed.
Of course, I’d like to know what you think. Post your comments below!
South Milwaukee Blog 
Watch for Wal-Mart on the corner of College & Pennsylvania.
I don’t understand why any one would want a Walmart in South Milwaukee, or do you like the idea of losing what little business we have on Milwaukee Ave. to disappear. That is what happens when a Walmart goes in they sell cheap chines made goods and the small business owner can not compete and they go under. If you want to see what I mean take a trip out to the Walmart on 27th Street there isn’t many business thriving near there. Another reason America is going broke nothing being made here that has any quality or pride behind it.
Is anything being done by the city to proactively see if something can be worked out to get this project back on track. I acknowledge that there is essentially nothing that can be done by the city if the current owner is asking for a sale price that is higher than the developer is willing to to pay. However if the hold up is due to environmental issues, is it being investigated what can be done to overcome this (Superfund, federal and/or state assistance programs)?
This is an enormous economic opportunity for the city and contrary to other posts, will have very little or no impact on existing businesses within the city because there are few redundancies in offerings. On the contrary, it should have a positive impact because a Walmart will draw more people to the city from surrounding areas and will promote additional development in the immediate area (one only has to look at the development around existing Walmarts in the area to see that it is not business killing). Additionally, it will get the city owned land back on the tax rolls. Correct me if I’m wrong but other than the Walmart proposal, it doesn’t appear like we have developers beating down city hall’s door to buy this parcel of land.
Indeed, talks among the parties have resumed. I don’t have much more of an update beyond that … but I take it as a positive sign they are at least talking again. And, you’re right, developers are not beating down the door to acquire this property — and they won’t until it’s cleaned up. Cleanup funding options are being explored to spur the Walmart development. We’ll see what happens.
Thanks for the update. The news is good to hear.
One question…is the property that needs to be cleaned up part of the privately owned land or city owned land?
All I know for sure is that the city property needs some level of cleanup.
Most likely this occurred before your time on the council, but why did the city buy the land knowing (or not knowing) the property needed cleanup? Seems like a very bad idea…take the properties off the city’s tax roll and then not be able to easily sell it because of environmental issues.