Sheldon S. Shafer

The Courier-Journal;

Walmart will build a store at 18th and Broadway, investing more than $25 million in the old Philip Morris property and employing hundreds along with the possibility of more retail development in the area.

Mayor Greg Fischer announced the agreement Monday morning, calling it the biggest economic development project in Western Louisville in at least a decade.

The Walmart "superstore" will have 157,000 square feet of space and include a grocery with fresh produce, a bakery, a deli, an optometrist and a pharmacy with a drive-through window. A construction date has not been set, but could start in the fall after city agency approvals are obtained.

The deal comes after some recent concerns expressed primarily by pro-labor groups about Walmart's checkered history with employees in regard to pay and benefits.

Louisville Metro Councilwoman Cheri Bryant Hamilton, D-5th, said the Walmart decision shows that "West Louisville is on the move, with a ready workforce, disposable income and available property" that should be attractive to developers.

But Hamilton noted the recent protests about Walmart and contended that those "loose lips could have sunk this deal."

City officials had been under a non-disclosure agreement with Walmart and, until Monday, had been bound not to identify the retailer considering the project at 18th and Broadway. But Walmart's identity had been widely speculated, and Fischer called Walmart's project "the worst-kept secret" in Louisville's history.

Walmart officials said they hope to hire as many people as possible from the nearby area, including the Russell and California neighborhoods.

Teresa and Frank Bridgewaters of The Mardrian Group bought the property — which they are calling NewBridge Crossing — from the city in 2006 for $1.

The Bridgewaters cleared the property, razing numerous huge former industrial buildings, with many of the materials salvaged.

Philip Morris in the mid-1980s employed about 4,000 people at its cigarette plant, including some of the city's highest-paid manufacturing jobs. The company sold the 23 acres on the southwest corner of Broadway and 18th Street in 2001 to the city for $100. That was after the tobacco company had closed the Louisville plant in 2000 and consolidated operations in North Carolina.

Teresa Bridgewaters said her company's effort to develop the property hit the skids amid the recession. Many prospective tenants dropped out, including Walmart after some initial talks. But she said that, while the plans were put on hold for several years until the economy began to recover, "we never gave up."

She said talks with Walmart began anew about two years ago.

Fischer cited the tenacity of the Bridgewaters in not dropping their pursuit of Walmart. He said the Walmart project "will send a strong signal that West Louisville is open for investment." He said there is a crying need for retailing in western Louisville, as well as for jobs and investment.

The Walmart store will create up to 300 jobs — and many dozens more during construction — and have an annual payroll of about $6 million a year, the city said. The supercenter is scheduled to open by the end of 2015, officials said.

Walmart filed plans for the store Monday with Metro Planning & Design Services. They are subject to what should be fairly routine agency reviews in regard to parking, drainage and other regulations and for permits, officials said.

Fischer said the Walmart should help build some critical mass near the Broadway and 18th Street area — along with the Brown-Forman Corp. campus immediately south of the former Philip Morris property and the YMCA of Greater Louisville's plan to build a new West End branch on the southeast corner of the same intersection.

Fischer said the city's investment in the Walmart project includes $1.8 million to buy six parcels adjacent to the former Philip Morris facility. Of that, $1.1 million was spent in 2013, with the remainder due to be spent in the year that starts July 1.

In addition, the city is providing a $500,000 grant to Walmart, to be paid $100,000 a year for five years, if Walmart meets and maintains a threshold of at least 225 new jobs.

At least part of the delay in finalizing the Walmart deal included protracted negotiations with the owner of a nearby parcel fronting on Broadway where a day-care center is located. But Fischer spokesman Chris Poynter said that a deal was finally struck with Walmart, after city officials and the Bridgewaters decided that the day-care land was not needed.

The land acquisition does include two "outlots" adjacent to the Walmart store site that can be developed by the Bridgewaters as restaurants, or other businesses, Fischer said.

Fischer said the Walmart store will be developed with "green" elements in mind, including skylights, energy-efficient lighting, heavily landscaped parking areas and a rain garden and other features to control storm water runoff.

Fischer acknowledged that Walmart is taking a risk in building the urban superstore.

Martin LaFoon, Walmart's marketing manager for the Louisville area, said Walmart intends to support charitable causes in West Louisville. He noted that last year the company donated $50,000 to the Blessings in a Backpack program at the nearby Roosevelt-Perry elementary school.

Walmart Louisville-area spokesman Kevin Thompson declined to answer any questions about wages the store will pay, or whether Walmart will allow employees to form a union.

But Fischer said Walmart is committed to hiring local citizens and the company will be opening a career center in the neighborhood to accept applications.

Metro Council approved spending most of the city money on the project. Metro Council president Jim King, D-10th, said, "I am glad to see one of the largest vacant properties in our city being developed into something that can create jobs and lead to more west end community growth."

Metro Councilman David Tandy, whose 4th District includes the former Philip Morris site, called Walmart a "game changer" for western Louisville. "It opens a new segment for a community that too often has been overlooked."

Tandy said area residents won't have to go to Southern Indiana to shop any more. He commended Walmart for "overcoming the psychological barrier" of investing in the West End and taking "a calculated risk" that is bound to spur investment by other companies in that part of town.

Metro Councilwoman Mary Woolridge, D-3rd District, said the project was stalled for many years. She pledged that she and other council members will monitor the project and also keep tabs on how employees are treated and paid. But the first consideration —before worrying about employee benefits — is that Walmart is providing hundreds of jobs, she said.

The Rev. Kevin Cosby of St. Stephen Baptist Church said the Walmart deal will help offset "years of disinvestment in western Louisville."

Broadway establishments near the site of the planned Walmart said they welcome the big box retailer.

Walmart will provide no competition to Stewarts Pawn, where electronics are always priced lower than big box competitors, pawn shop owner Jeff Stewarts said. Stationed on Broadway at 11th Street since 1990, the pawn shop specializes mostly in electronics and jewelry, he said. Pawn shop customers often have their eye on an item, say a 32-inch flat screen television, which Stewarts said he sells for around $200, well below the typical $299 retail. Walmart's presence down the street will only increase the number of customers who see his shop, he added.

"I hope Walmart brings more traffic through here," Stewarts said. "That would bring more business down this way."

Broadway Fashion, 1801 W. Broadway, is owned by Babinta Koita, an immigrant from Mauritania. Koita markets hats, dresses, sunglasses and home furnishings but said he doesn't fear competition from Walmart. Instead, Koita said he expects his foot traffic to rise as Walmart revitalizes a property too long vacant.

"People have a bad thinking about the West End," said Koita, who said he paid $65,000 for the building that has housed his Broadway Fashion store since 2004. "We may start seeing different cars and different people down here. I think we may benefit from that."

In business for a decade, Koita said he's already seen the value of his yellow brick corner store double to an estimated $135,000. Walmart's opening will only increase his property values, he added. "I think it's a good thing to have Walmart across the street from us."

While jobs at Walmart may not pay career wages, the retailer will expose West End residents to mainstream, entry level job opportunities beyond the current predominance of neighborhood job openings mostly at fast food establishment on the strip, said Ben Richmond, president and CEO of the Louisville Urban League, at Broadway and 15th Streets since 1990.

"I don't expect somebody to go to Walmart and spend the rest of their career there. But if they go there, start in that position and move up the chain…." Richmond said. "They can get a good education and go onto another job. That is the bigger picture."

Fischer said the city's investment in the project consists of primarily $1.8 million to buy six parcels adjacent to the former Philip Morris facility.

Of that, $1.1 million was spent in 2013, with the remaining amount to be spent in the city fiscal year that starts July 1. In addition, the city is providing a $500,000 grant to Walmart, to be paid $100,000 a year for five years, if Walmart meets a threshold of at least 225 new jobs, the city said.

Reporter Sheldon S. Shafer can be reached at (502) 582-7089. Follow him on Twitter at @sheldonshafer. Reporter Jere Downs contributed to this story.