Calvert landlord doesn’t want to give up rental income

The Crestwood Board of Aldermen approved an ordinance June 28 designating Calvert’s Auto Express, 9415 Watson Road, as a degraded area under state law.

The property around Calverts, the former Crestwood shopping centre, is being redeveloped into a mixed-use development including a Dierbergs grocery store, other retail and residential businesses. Land was dumped on the Dierbergs portion of the project in April.

Dierbergs and Calvert were unable to reach an agreement on ownership of Calvert as of June 30. The Crestwood Crossing site redevelopment agreement directs the town administrator to introduce legislation to council that would allow the Calvert property to be condemned.

Documents approved by the council include a study of the burn, a plan to remedy the burn, an agreement accepting the redevelopment plan, and an order designating the area as burned.

The site has been identified as degraded by PGAV planners. The company found “deteriorating site improvements,” conditions that “endanger life and property through fire and other causes,” and found that the combination of these results in “economic liability and social for the city.

The mall site as a whole was identified as degraded about a year ago, qualifying it for development tax increment funding.

Representatives from Dierbergs and Calvert were on hand to explain their version of the situation.

Brent Beumer, director of real estate at Dierbergs, said the site was the last parcel the company was due to acquire. Buemer explained that the ordinances would designate Dierbergs as a redevelopment corporation and allow him to obtain ownership through eminent domain by conviction. Buemer said the 0.92 acres would be used for several buildings.

“I would still like to continue to engage in dialogue with (Calvert) to reach a negotiated settlement independently of this that makes sense to everyone,” Buemer said. “But at some point, if we can’t come to an agreement on the price, we have a budget that we need to be aware of because it relates to the overall costs of our project.”

Gary Calvert, owner of the site, said the city should have bought the property before him in late 2015 because it had been on the market for three years at that time. He said that currently he makes money by renting out the property.

Calvert said when he first received a letter of intent from Dierbergs with different terms than a contract received later – “they made no effort to get a deal done,” he said. declared.

“(The current rent) is $96,000 a year. At a 5% cap rate, it’s worth $1,923,240…We just need to figure out what I need to do to make this property more attractive to the city so I can sustain that income,” Calvert said.

Mayor Grant Mabie said he hoped the two sides could come to an agreement and find common ground. The council voted 6-0 to approve the ordinances.