City seeks to annex old Wal-Mart into redevelopment

Desiring to see the old Wal-Mart building on South Carson Street bustling with activity, the Carson City supervisors decided Thursday to pursue a different direction with the property's owner, former "Beverly Hillbillies" star Max Baer.

Mayor Marv Teixeira directed Carson City's manager for economic development to look at the old Wal-Mart site and consider adding it to a redevelopment district.

If it is annexed into the business development district, the city would have more leverage on its development, which includes the power of eminent domain.

Eminent domain allows government to take or purchase private property for public use.

Baer has tried to develop the building into a hotel/casino and multiplex movie theater for about two years, but has been stymied by the other two property owners in the Southgate Shopping Center.

Shopping center rules prohibit development of a recreational business such as Baer's proposed Jethro's Beverly Hillbillies Mansion & Casino. The issue has gone to court and was decided in favor of J.C. Penney and the Glenbrook Co., a development corporation headed by Carson City Supervisor Shelly Aldean.

Wal-Mart recently made an offer to Baer to repurchase its former location for a Sam's Club. Baer said he declined the offer because he wants to continue good-faith negotiations with J.C. Penney and Glenbrook so that he can build his hotel/casino.

Joe McCarthy, economic development and redevelopment manager, said Thursday that the board directed him at their meeting to determine if the old Wal-Mart fits the criteria of a redevelopment site.

"It's vacant and unused as a retail building for years and it has the appearance of physical and economic distress," he said. "It's a distressed property."

McCarthy said this will be an open and transparent public process. He declined to comment if the city would pursue eminent domain, saying that was getting too far ahead.

"It needs to be stated clearly that Carson City has never exercised eminent domain on any commercial property and the only time condemnation is used is for a very specific public purpose," he said.

McCarthy said the city will not intercede in the private property dispute between J.C. Penney, Glenbrook Co. and Baer.

"It's clear to say that this is going to be very positive if this community is agreeable to a public process to add the old Wal-Mart to a redevelopment district," he said. "And we'll continue to work with Mr. Baer to put this property back into service, ending its years of vacancy."

Baer declined to comment on this issue.

Teixeira said he wants to focus on the Southgate Shopping Center and aid development.

"In fact, if he wants to build it, bring it on," Teixeira said. "All we're getting so far is that he wants to build, but we see no action."

The mayor has taken a stance for retail in the old Wal-Mart, although he has also said the city will not undermine the building of the Hillbillies casino.

"Build it, or allow us to help you get a tenant in there that would build retail," he said. "There is a lot of interest in that facility. Don't punish the community."

Questioned about the use of eminent domain, Teixeira said, "it's a possibility."

- Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.

What's a redevelopment district?

An area where tax dollars are used to help fund economic development projects for private business owners.

The old Wal-Mart site could possibly be annexed into the central business district. Established in 1986, this district mostly includes downtown, the Carson Mall and Costco. Carson City Redevelopment Manager Joe McCarthy said there is no legal requirement that properties in the district be continuous.

Tenants and owners in Southgate Shopping Center and Eagle Station will be asked to join the district. If they are favorable to the idea, McCarthy will then take it to the redevelopment board, which will publicly discuss the issue and make the final decision.

Eminent Domain - the right of a government to take or purchase private property for public use.