08/16/2007

Wal-Mart to cancel purchase agreement

Spokesman: Site poses concerns about environment

By Vanessa McCray

vmccray@record-eagle.com

MANISTEE — Wal-Mart still wants to build a store in Manistee, but won't do it on city-owned property in Filer Township.

The retail giant notified Manistee city officials this week it would terminate a June purchase agreement with the city for nearly 20 acres of land at Red Apple Road.

Wal-Mart spokesman Nick Infante said the property, a former dump now used as a compost site, posed concerns about environmental work and utility location. The company also questioned if it is the best site to attract the most traffic.

"We are not bailing on Manistee. That site just didn't work for us,” Infante said.

The city's purchase agreement with Wal-Mart Real Estate Business Trust gave the potential buyer 210 days to study the feasibility of its plan before completing the nearly $2 million land deal. Wal-Mart asked the city to reimburse the $72,000 it put in escrow, said city Manager Mitch Deisch.

"This is within the purview of the purchase agreement,” he said.

Wal-Mart approached the city more than a year ago to purchase the site and remains interested in a Manistee County location. The retailer's closest store is located in Ludington, with posts also in Cadillac and Traverse City.

"We are going to look at some other options in the Manistee area,” Infante said.

The company doesn't have a site in mind and will hire brokers to find a spot.

Filer Township Clerk Shirley Ball said the retailer never submitted any land use plans to the township.

"Not that I am aware of,” Ball said.

The proposed store spurred debate amongst residents. Some feared the retailer would squeeze out the city's small businesses, while others welcomed the job opportunities and lower prices on goods.