SOUTH ALPINE, IL WAL-MART IN LIMBO

Lawsuit, economic downturn leave South Alpine Wal-Mart up in the air [BusinessRockford.com (Ill.)]

Construction of the city’s fourth Wal-Mart Supercenter on South Alpine Road has been delayed for more than a year because of litigation — and its future remains in doubt.

Rockford aldermen approved Wal-Mart’s venture into the South Alpine area in April 2006, and construction was set to start later that fall. The proposal was first announced in 2005.

But before any earth had been moved, ADY of Illinois Inc. sued Wal-Mart, the city of Rockford and the developer on April 27, 2007, according to court records.

The lawsuit was dismissed late last month, said John Elias, attorney for Peoria-based developer Waldschmidt Development Corp.

“We didn’t think the case had merit when it was filed, and we still don’t think it has any merit,” Elias said.

ADY of Illinois Inc. and the organization’s attorney, Wheaton-based Mark Daniel, could not be reached for comment. The two sides will be back in court July 16 because an appeal of the ruling may be filed.

And since the lawsuit was filed — halting any work on the property, a cornfield near the intersection of Alpine and Linden roads — the U.S. economy has fallen on hard times, and Wal-Mart Stores Inc. is reducing its capital spending for fiscal 2009 and slowing construction of supercenters because of the weakening U.S. economy.

That said, the discount retailer still expects to spend $13 billion to $14 billion during the fiscal year ending Jan. 31, 2009, which is less than it first estimated last year.
Wal-Mart did not return repeated calls for comment.

Rockford resident Kathy Powell lives near the proposed site and has been curious whether Wal-Mart was still coming to her neighborhood.

Powell wants Wal-Mart to build so she’ll have another choice for shopping in the area. Hilander, 2514 S. Alpine Road, and Gray’s IGA, 1415 Sandy Hollow Road, are the closest grocery stores.

“I was looking forward to going to there and buying everything in one store,” Powell said.

Wal-Mart is the biggest taxpayer in Rockford and the third-largest employer with about 2,750 employees, behind the Rockford School District and Rockford Health System. Supercenters also are located in Roscoe and Belvidere.

Heidi Gonzalez lives about a mile from the site and still opposes the project most of all because of traffic concerns.

Jefferson High School sits near the proposed site, and Gonzalez said she also sees possible truancy issues arising if children can walk across the street and shop.

“There are plenty of other businesses that the city could bring in, not just the same stuff we’ve always had,” Gonzalez said. “How many Wal-Marts do we need? People can drive the eight miles to shop at the one on State Street. ... Every time I drive by, I always look for some sort of construction or movement. I just don’t want it here. I don’t see it as this is the place to be.”

Posted by Joel Nezianya on Monday, July 07, 2008