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City: Wal-Mart must pay all application costs
Published Wednesday, September 20, 2006 11:08:38 AM Central Time
By Jason Busch
of the Times
MONROE --
When Wal-Mart comes to the city with an official supercenter proposal,
it will know exactly what the city expects the large-scale retailer to
pay for all project costs associated with processing its application
form -- everything.
The City Council voted 8-1 Tuesday in favor of a cost reimbursement agreement with Wal-Mart Real Estate Business Trust.
Alderman Neal Hunter was the lone dissenting vote. Alderman Mike Capesius was absent from Tuesday's council meeting.
City
Attorney Rex Ewald said the agreement passed Tuesday is one of two
versions previously forwarded to Wal-Mart officials. Wal-Mart has not
responded to the versions.
Ewald said he thinks Wal-Mart has no resistance to paying all project costs.
But, he
said, while the second version of the agreement covers city officials'
concerns about payment, he still believes Wal-Mart's possible concern
about being subject to any and every charge from the city is
legitimate.
"I think
this second version is the best," City Administrator Mark Vahlsing
said. "There's no cap (on what Wal-Mart could spend) but it also lets a
third party evaluate (Wal-Mart's application)."
The first
version allows for a co-payment program between the city and Wal-Mart.
Wal-Mart would pay 100 percent of project costs up to $50,000. After
$50,000 the city would pay 10 percent of the costs. After $100,000 the
city would pay 20 percent of costs and so on.
City
officials were united in their displeasure with that version because
the ordinance passed earlier this summer regulating large-scale retail
(LSR) developments in the city required developers to reimburse 100
percent of all project costs incurred by the city.
The second
version stipulates just that -- and offers Wal-Mart some assurances
that the city won't gouge the retailer for unnecessary site
evaluations.
Ewald said the developer shall reimburse the city for the following project costs:
* Sums paid to Vierbicher Associates, Inc.
* Sums paid to Voegeli, Ewald & Bartholf Law Offices, S.C.
* Reasonable allocations for time of city employees related to any item of reimbursable project costs.
* Sums
paid to a provider other than Vierbicher Associates, Inc. or Voegeli,
Ewald & Bartholf Law Offices, S.C. if such provider was approved in
advance by the developer. The developer shall not unreasonably withhold
approval of any such provider. If the retaining of a provider is
jointly recommended by Vierbicher Associates, Inc. and Voegeli, Ewald
& Bartholf Law Offices, S.C. the decision by the city to retain
such provider shall be presumed reasonable.
Under the
agreement Wal-Mart must keep a $50,000 funding cushion at all times for
the city, although it has up to 30 days to replenish the reimbursement
account.
Jason Busch can be reached at
jbusch@themonroetimes.com
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