Is Target the goal?

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BY DEENA WINTER / Lincoln Journal Star

Two City Council members accused the mayor of trying to restrict the size of a big box store in a northeast Lincoln development enough to attract a SuperTarget, but not a Wal-Mart Supercenter.

They made the accusation Monday after Mayor Coleen Seng asked the council to limit the big box store proposed in the Prairie Village North development to 175,000 square feet.

The council went along with Seng’s request by a vote of 4-3. The developer, Steve Champoux of Prairie Homes, said Wal-Mart won’t build a store that small so he’ll need to find a different business.

[+]Enlarge

(LJS File)

(LJS File)

The development northeast of 84th and Adams streets originally included plans for a 230,000-square-foot Wal-Mart, but three months ago, Seng threatened to veto it, saying that was too big of a store for the area. She indicated something in the 100,000-square-foot range would be more appropriate, but Wal-Mart spokesmen have said they wouldn’t build anything under 195,000 square feet.

Since Seng’s veto threat in December, Champoux has been trying to negotiate a compromise with her office.

During Monday’s debate, Republicans on the council questioned Seng’s motives.

Councilwoman Robin Eschliman, a commercial real estate agent, said a 175,000-square-foot store is “not the prototype for Wal-Mart.”

“It seems to me like we’re picking and choosing companies here,” she said. “We wouldn’t be having this discussion ... if it was about any other company than Wal-Mart. ... This developer’s time and money have been wasted.”

Councilman Jon Camp flatly accused the mayor of trying to get a SuperTarget into the area, even though sources told him, “They don’t want to go there,” he said.

He said the mayor shouldn’t dictate whom the developer can negotiate with through size restrictions.

“This is really a distinction between SuperTarget and Wal-Mart,” he said.

Councilman Ken Svoboda questioned the difference between typical neighborhood centers — which often have a grocery store and a bunch of other retailers under one roof, with separate entrances — and a Wal-Mart. They both employ about the same number of people and generate about the same amount of traffic, he argued.

“This is an anti-Wal-Mart issue,” he said. “I can argue with anybody that this is not just a land use issue, this is a Wal-Mart issue.”

Champoux and his attorney, Peter Katt, refused to comment on whether the mayor preferred Target over Wal-Mart.

“We won’t confirm or deny that,” Katt said.

Seng said it’s always been a land use issue, not a Wal-Mart issue. She said the size limitation doesn’t prevent any retailer from building there, including Wal-Mart. She said most of the anchor stores in several neighborhood centers in Lincoln take up 52 to 72 percent of the total retail square footage, and a 175,000-square-foot store would result in a similar ratio.

Asked after the meeting whether she has discussed the possibility of Target building in that location, she said, “There are many retailers that ... come up in conversations.”

Asked whether Target is interested in that location, she said she didn’t know.

Asked whether she would support a Target there, she said that would “be fine” but added, “Perhaps Wal-Mart will come back.”

Asked whether she preferred a Target or a Wal-Mart there, she said “I don’t think that I can do that.”

Asked whether Target has expressed an interest in building additional stores in Lincoln, she said: “Target is interested in locating stores in Lincoln, Nebraska. Wal-Mart is interested in locating stores in Lincoln, Nebraska.”

Councilman Jonathan Cook said the size restriction doesn’t preclude big box stores from being built in Lincoln; it merely limits where they can be built.

“Not every corner is an appropriate location,” he said.

Councilman Dan Marvin said since the council didn’t have enough votes to override Seng’s veto, it had to find a compromise.

So far, Champoux has spent about $400,000 on engineering, legal fees and other costs, while Wal-Mart has spent more than $300,000 exploring three different sites, he said. During the council debate, Camp suggested Seng reimburse Champoux’s costs, buy the property and take on the risks herself.

All of the delays just raise another red flag to developers that “Lincoln is a difficult place to do business,” Camp said.

“Let’s not hamstring the developer,” he said. “Essentially we’re playing Russian Roulette with the developer’s property and that’s just not equitable.”

While the City Council approved zoning changes to accommodate the development, they are contingent upon the city and developer working out an annexation agreement.

The agreement spells out things like who will pay for street and water improvements near the development.

Under the earlier proposal, Prairie Homes would have paid for about $5 million in improvements, which the city would pay back when impact fees begin being paid by homeowners and businesses. But Champoux said without Wal-Mart committed, he can’t shoulder those costs.

Svoboda said the developer met all of the city’s standards, spent hundreds of thousands of dollars in the process and offered to front $5 million in infrastructure needs in that area. “We’re throwing that away,” he said.

Aside from the controversial big box store, the development also includes 1,161 homes, townhomes and apartments.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.

How they voted

The City Council voted 4-3 Monday to approve the Prairie Village North development northeast of 84th and Adams streets. It restricts the big box store to 175,000 square feet.

Yes: Republicans Ken Svoboda and Robin Eschliman and Democrats Dan Marvin and Annette McRoy.

No: Democrats Patte Newman and Jonathan Cook and Republican Jon Camp.

How big is too big?

Lincoln has two Targets and two Wal-Marts. Their sizes:

Target, 333 N. 48th St.; 112,873 square feet

Target, 5330 S. 56th St.; 95,303 square feet

Wal-Mart Supercenter, 4700 N. 27th St.; 210,050 square feet

Wal-Mart Supercenter, 8700 Andermatt Drive; 197,801 square feet