Wal-Mart to remodel old Kmart building

Wal-Mart has pulled its application requesting a rezoning of the former Kmart building on Parleys Way and instead plans to remodel the existing building for a Wal-Mart store.

Wal-Mart Stores Inc., based in Bentonville, Ark., announced the decision Tuesday in a statement to the media. The store was in discussions with Salt Lake City officials this week about the project, said Angela Stoner, Wal-Mart's senior public-affairs manager.

Retailers have been affected by the recession, as consumer spending has decreased. Wal-Mart said same-store sales excluding fuel rose 1.4 percent in March, failing to meet analysts' expectations. The world's largest retailer blamed the timing of Easter for the miss and said it still expected first-quarter results would be high.

"In this difficult economy, it is important to bring much-needed new jobs, tax revenue and charitable giving to the community in a timely manner," Stoner said.

Kmart occupied the property at 2705 E. Parleys Way for four decades but closed last year because of low sales. Wal-Mart purchased the property in 2005 and leased it to Kmart. Wal-Mart intended to build a supercenter at the site but needed the city to change the zoning from "community business" to "community shopping."

Wal-Mart does not have remodeling specifics yet. Stoner said she did not know when the new store will open.

In September, the Salt Lake City Planning Commission decided to recommend that the City Council reject Wal-Mart's request for a zoning change.

Commissioner Tim Chambless said the Kmart building was approved in 1966, when Salt Lake City was much smaller and the demographics of the neighborhood were different. And back then, the city approved the building without a public meeting to hear neighbors' opinions.

Chambless voted against the store because he could "see only two ways in and out, and what we have is accidents ready to happen, busy thoroughfares to the south and east, situations where people had to be very careful entering and exiting that particular property," he said.

Chambless said Wal-Mart refused to work with the community to modify the superstore.

"Wal-mart was resistant to working with the community," he said. "They had a foregone-conclusion idea of what they wanted. They wanted their formula."

Salt Lake City Councilman Eric Jergensen said he had been optimistic that Wal-Mart officials would return with a plan "that would fit better with the neighborhood's ideas."

"We worked hard with them to see if there was a chance, but Wal-Mart decided not to take that," Jergensen said.

The Planning Commission's unanimous vote reflected most neighbors' views.

Rawlins Young, a member of the Sugar House Community Council, said he opposed the rezone because it didn't align with the city's East Bench Master Plan. Young said he wonders if Wal-Mart will draw more traffic.

"In theory, Wal-Mart wouldn't have more traffic than Kmart, but I wonder if Kmart has lost support," he said.

Contributing: Aaron Falk

E-mail: lhancock@desnews.com