Readers ask about Walmart-Crown American covenants; read them here

 

When the redevelopment of the former Oak Ridge Mall is discussed, it’s not unusual to hear residents ask questions or raise concerns about the so-called Walmart covenants. Those are probably the most frequently cited covenants or restrictions in place at the former mall site.

But they’re not the only ones. Oak Ridge retail consultant Ray Evans said Cinemark Tinseltown theater, JCPenney, Belk, and Staples also have rights on the site redevelopment plan. As an example, some rights are related to not interfering with some nearby parking or roadways at certain times of the year.

Evans said it’s not true that the Walmart covenants have prevented redevelopment of the property. More generally, it’s not unusual in a redevelopment to have many people who have lots of rights, Evans said.

He said the Walmart covenants had no impact on the proposed redevelopment by RealtyLink, a project known as Main Street Oak Ridge. In fact, he thinks RealtyLink would probably say that Walmart was easy to work with, Evans said.

The so-called Walmart covenants were agreed to in June 2000 and filed in the Anderson County Register of Deeds office in July 2000. The agreement was between Wal-Mart Real Estate Business Trust and Crown American Properties LP, a former developer in Oak Ridge.

The specific covenant cited most often by Oak Ridge residents prohibits a grocery store, supermarket, or discount department store of more than 90,200 square feet on certain mall property as long as Walmart or any of its affiliates owns its property and sells grocery products or operates a discount department store. (You can read that covenant under 3. Competing Business starting near the bottom of Page 2 in the attached PDF.)

Evans said 90,200 square feet may have been the target size of a Target store at the time. Other economic development officials have said that certain property restrictions are not unusual in the retail  industry, and it is unusual for a Target and Walmart to be located close to each other.

Although residents continue to raise questions about the city’s involvement in the covenants, Evans said the city played no role in them 16 years ago and still doesn’t have a role to play. The covenants transferred to the current mall owner, Oak Ridge City Center LLC, and will transfer to RealtyLink when it buys the property, Evans said.

Officials said last week that RealtyLink, the proposed developer, is on track to close on the sale of the roughly 60-acre mall site by the end of June.

As proposed, Main Street Oak Ridge, a project that could cost around $75 million total, would include a mix of retailers, restaurants, residential units, and possibly a hotel. The existing enclosed space between Belk and JCPenney, the two remaining anchor stores, would be demolished, although those two stores would remain.

Oak Ridge Mayor Warren Gooch announced in May that Dick’s Sporting Goods, PetSmart, T.J. Maxx, and Ulta plan new stores at Main Street Oak Ridge, and Belk and JCPenney are renewing their leases at the 58-acre site.

See the June 2000 agreement between Wal-Mart and Crown American, called Easements with Covenants and Restrictions Affecting Land, here: Walmart-Crown American Easements with Covenants and Restrictions July 2000.

See previous stories about Main Street Oak Ridge here.

More information will be added as it becomes available.

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