2nd dollar store gets new life, new lot
Two months after would-be developers of a second dollar store in Marion withdrew an offer to buy a reserved lot in the city industrial park, city council members voted 4/1 Monday to authorize an agreement donating a different lot and agreeing to pay to build a street for access.
Council member Ruth Herbel cast the lone vote in opposition to giving the land, one lot north of the original location, to CBC Marion, part of U.S. Federal Properties Co., Kansas City, Missouri.
CBC develops sites for Family Dollar and Dollar Tree combination stores.
Council members Susan Gray, Chris Costello, and Jerry Kline, and mayor David Mayfield voted in favor.
City administrator Roger Holter told council members that the developer asked for alternative locations, public and private, and that city staff included the new location in its response.
The proposed site this time is 826 N. Roosevelt St., just south of the former Arlies’ Collision Specialist building, now rented by Lincolnville auctioneer Joe Vinduska and his wife, Tish, for their auction business, Pilsen Packrats.
The proposal includes building a half-block of Moulton St. east from Roosevelt St. to the back edge of the property line to provide two means of access to the property.
Holter told council members the street might cost between $62,000 and $109,100 for concrete or as much as $101,100 for asphalt, but eventually would need to be constructed, whether the dollar store locates there or not.
Under the terms of a proposed real estate contract between the city and the developer, the city would sell the property for $1.
A different paragraph reads that the city is “donating” the property and that the buyer is not required to pay earnest money.
Additional conditions of the deal include that the developer would get zoning approvals and a conditional use permit to operate a retail store on property zoned for industrial use.
Holter told council members the planning and zoning commission “is working on an umbrella declaration that retail is acceptable throughout the Batt Industrial Park.”
The planning and zoning commission discussed a possible retail overlay for the industrial park at its last two meetings, but Holter and mayor David Mayfield failed to show up as scheduled at the commission’s most recent meeting last week.
The proposed contract contains a covenant that prevents property within 1,056 feet from the store from being used as a future Dollar General store.
Dollar General already has a store in the industrial park approximately that distance away at US-56 and Industrial St. Its developers contend they have a promise from the city not to allow Family Dollar or any other rivals in the industrial park, but Holter contends no such promises remain in effect.
A second covenant of the new contract is that no adjacent property is to be used for noxious, offensive, immoral, illegal, or other parking-intensive uses — except for a recreational vehicle and boat parking facility proposed to be located nearby if it obtains zoning approval.
A third covenant is that the city won’t permit another retail business for 15 years in a reserved area earlier proposed for sale to the developers. That V-shaped area along Kellison and Roosevelt Sts. at the southwest corner of the industrial park is reserved for drainage, easement, and a buffer area between the industrial park and residential property.
Holter included projected financial implications in Monday’s agenda packet.
- Eight to 10 employees would mean an annual payroll of $195,000 a year.
- Building the store would mean an investment of $550,000.
- A 2015 store added $529,620 to the city’s valuation, resulting in $28,804 a year to county taxing units and $46,442 to the city over five years.
- The store is expected to generate $1.635 million in commerce, equating to $12,263 in sales tax for Marion.
- Utility revenue is estimated at $18,000 a year.
He said having an additional dollar store would bring regional customers to Marion.
“Merchandising plans and store assessments are indeed meant to compete with like dollar stores,” he wrote, “but also, to take sales away from Walmart and Amazon, as a local alternative.”
Holter said shoppers having choices between stores might lead them to look around and spend a little more time in Marion.