Business: Kmart site update (with rendering): Ledbetters say project worth $30 million, to feature 28 to 30 restaurants, retailers, other businesses. Also: Contract pending on former West Rome Burger King site.

Business: Kmart site update (with rendering): Ledbetters say project worth $30 million, to feature 28 to 30 restaurants, retailers, other businesses. Also: Contract pending on former West Rome Burger King site.

  • For a larger view of the above map, please click: http://bit.ly/KmartLedbetter

Below please find a closer look at the potential plans for the former Kmart site in East Rome. What follows is a copy of the plan the Ledbetters sent to the city of Rome for review at Tuesday’s Redevelopment Committee meeting.

Ledbetter Development LLC proposes the creation of the East Rome Redevelopment Area to enable the complete redevelopment of the former Rome Kmart site through the subsequent establishment of the City of Rome Tax Allocation District #4. (It includes almost 20 acres, from the railroad tracks to Turner McCall to Hicks Drive to Etowah Crossing (Dollar Tree)  and back to the tracks again).

Redevelopment Timeline

Jan. 11: Earnest money goes hard
Feb. 1: Release Survey, Phase II and Geotech
April 2:  Review third party reports and Release Design
May 1: Close on purchase of property
Aug. 1:  All permits and start sitework
April 1, 2020: Deliver all outlots
Aug. 1, 2020: Construction complete

Redevelopment challenges

• Acquisition and redevelopment costs estimated to be $23.6 million.
• Tenant rents for Rome/Floyd indicative of secondary market status.
• Developer requirement for investment risk/return is a minimum 8% return on costs.
• Current ROC is approximately 7.3%
• The resulting feasibility gap is approximately $2.065 million.
• “Based on the above, the proposed redevelopment would require the creation of the City of Rome Tax Allocation District #4, estimated to be in the $1.8-2.0
million range over 15 years.
• “But for the TAD contribution, the investment return requirement is unachievable, thus the redevelopment project is not feasible.”

Redevelopment highlights

• Redevelopment of a functionally obsolete, community eyesore into a top quality, commercial mixed use asset to strengthen Greater Rome as a regional retail center.
• Total new capital investment approaching $30 million.
• Potential for up to 20-28 new retail, restaurant and service businesses.
• Potential for over 400 new jobs.
• Estimated new sales taxes exceeding $2.3 million annually


 

That was fast: The West Rome Burger King relocated on Dec. 31 to the remodeled site of the former Popeye’s, leaving the original restaurant across Shorter Avenue. Tuesday afternoon, Realtor Craig McDaniel of Toles, Temple & Wright announced the location was under contract. He says the buyer wishes to remain anonymous at this time — but invited Twitter followers to “….guess who/what might be moving here?” The listing for 2114 Shorter Ave. showed a 2,860-square-foot restaurant available on .68 of an acre in front of West Towne Square Shopping Center. It was built in 1990. Asking price: $635,000.

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