| Incentive approved to lure stores to Camden By ALEX AYRES Staff Writer Plans for new businesses to move to the old Country Side Plaza in Camden, at U.S. 278 and Cash Road, were announced at the Ouachita Partnership for Economic Development meeting on Wednesday morning.
Funds in the amount of $163,510 were awarded to a redevelopment company, Henzlik-Oliver Real Estate Companies, for a retail development incentive to reimburse the developer for a portion of costs to begin renovating the Country Side Plaza into the "Camden Marketplace". The funds awarded are from the retail development incentive fund that will be transferred from the City of Camden to OPED.
Tyler Oliver, a partner of the Henzlik-Oliver Real Estate Company, said that they are close to making a deal with Atwood’s to move into the original Walmart building.
He said that Cato will remain in the property, but new businesses, Shoe Show, It’s Fashion Metro (women’s clothing store), and Dollar Tree will be moving in.
Oliver said that they are looking into having a fast food chain that is not currently in Camden occupying space in the parking lot. He said that the development will generate $2 - 2.5 million in sales tax each for the city and county for a total of $5 million in new sales tax over the next 10 years In addition, he guessed that these tenants could bring in about 40 new jobs to Camden. He said that they were asking for incentive to start this project off.
Oliver said that the total cost, excluding land cost of the renovation of the area will be more than $2 million. He said that they plan on repairing the roof plumbing, store front, and structural remodeling in the Kroger space within a six-month time span.
In a news release by the redevelopment company Henzlik-Oliver Real Estate Companies, LLC, based out of Overland Park, Kan., discussed the plans they have for the property that Oliver said currently has Cato as the only tenant.
In the release, Oliver said, "The center has been neglected for years and it is time to bring back life to the best intersection in Camden."
The redevelopment plans will include new tenant spaces, store front additions, parking lot improvements, and other improvements to the property.
"We are negotiating with a regional chain that will occupy 55,800 square feet of space selling general merchandise, outdoor products, sporting goods, lawn and garden, and seasonal merchandise. The former Kroger space will be divided for two national retailers, a women’s clothing store along with a dollar store. The city staff has been very helpful and great to work with," Oliver said in the news release. The news release also states that the plans are for construction to begin around June 1.
Jim Golden, board member, asked why they needed this initial funding of $163,510 to start off this project.
Oliver said that it’s based on return that the company needs to meet. It puts the project in an acceptable range to appeal to banks when they start approaching them for funds to begin construction.
County Judge Mike Hesterly, board member, asked that the project, for whatever reason, was not completed, would the city be "out this money?"
Oliver said that the project has to be completed, according to the contract, for the firm to be reimbursed.
Camden Alderman L.E. Lindsey said that he felt to use this money is wrong, because the funds set aside in the retail development incentive fund were to be used for public property improvements.
"This thing fundamentally goes totally against what the City Council passed when we designated this money." Lindsey said.
Lindsey said that his objection was not because he did not want a competing shopping center, but that when using tax money, "don’t do anything for one group that you wouldn’t do for another group".
He said, if a landlord or developer wants to make improvements to their own business, that they should be able to use tax money to do it as well.
Lindsey said that he does believe that it would generate sales tax revenue and be an improvement to the city. "I think that you’re wrong to start down this trail. I think you’re going to end up with a long list of folks that say ‘We’ll be next in line. We’ve got some things we’re going to do.’" Lindsey said, and that he felt it was going to open a can of worms.
Claybaker said that the project "has given him great heartburn." He said that they have been looking at potential buyers and leasors for the past four years to come in, but there were problems with the buyer and the seller.
The property’s owner was in California and had been in jail in New York, according to Claybaker. He said that the way the owner has been handling the shopping center since he obtained it is a good indication that he should have been in prison. He said that he didn’t really believe that the city, county, or state government should be involved in any transaction involving this center.
"Here we are faced with an opportunity to redevelop. The buyer says that the only way he’s going to be able to make this work is that we incentivise him to make it easier for him to sell it to his bankers and make it happen." Claybaker said. He said that they are faced with two decisions – to give the incentive and get the development happening along with getting these new retailers. Or that if the incentive isn’t given, the project won’t happen and that a year from now, the city can be faced with spending $150,000 to $200,000 tearing the shopping center down. Searcy Harrell, president of OPED, said that historically OPED funds had gone toward industrial development and not so much retail development. He said that OPED had gone to the Camden City Council and were approved to have the authority to do retail development. This included having a funds set aside specifically for retail development. Harrell said that according to the contract, it states that OPED can use existing funds for retail development. He said that if OPED does this, it needs to be able to tell local developers that when they have an expansion project or a new business coming in, they can come in and they will "seriously consider and probably fund" those projects as well. Harrell said that funding toward retail business development shouldn’t come out of the funds reserved for industrial development by OPED.
The motion passed by majority vote with five board members approving the motion to fund the incentive of $163,510, two objected, Hesterly and Mike Murphree and two abstained, Alan Dean and Blake Fain.
Norm MacNeill, executive director of OPED, said in his executive report that he’s been preparing a proposal and incentives offer for a major employer seeking a site.
He said that they are now looking at a second proposal and both proposals are looking at reusing the International Paper site. |
