Parking authority draws line in sand over Kohl’s

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Different opinions on how to deal with the downtown Kohl's project could meet in a head-on collision tonight.

City Council's reluctance to commit further funding for the project without a signed agreement from the department store chain is frustrating members of the Williamsport Parking Authority, and could lead to an offer to "assume all future costs" and risks for the project if council will simply finalize the purchase of the Williamsport Area School District's downtown service center and release already designated funding for engineering.

Purchase of the service center and relocation of the school district facilities would allow the site to be cleared and construction-ready so the Wisconsin-based Kohl's chain can begin construction of its store by next May.

Delays are creating concerns because the clock is ticking and putting the project at risk, maintain authority members who have played key roles as liaisons with the various entities involved.

The city and department store chain both are breaking new ground. Kohl's is exploring the viability of locating more stores in downtowns and the city government has taken on the unprecedented role of being a "developer."

Some have called the situation cutting edge, but during the monthly parking authority meeting Wednesday afternoon, frustrations were vented over council's reluctance to take the plunge along with the authority and city administration.

Council has been stingy about releasing funds for engineering work, authority members noted, and is demanding an inked agreement with Kohl's before the service center purchase can be finalized.

The situation prompted some sharp words by authority members.

Pete Sides, a longtime authority member and retired owner of Sides Family Music Centers, said "council seems to be standing in the way of ... progress" and suggested the authority offer to take over the project, including all its financial risks.

The authority already has offered to buy the service center site from the city if the Kohl's deal falls through, but a contract finalizing the offer was removed from tonight's council meeting agenda along with a vote to finalize the sales agreement with the school district.

During Tuesday's council finance committee meeting, there were comments by council members to the effect that the authority assuming the financial risk for the service center purchase still was a city financial risk. Wednesday, authority members shook their heads at such comments, stressing the authority is independent of city government and has no impact on the city budget or tax rate.

Councilman N. Clifford Smith was present at the authority meeting and promised to request council take the Kohl's related items off the table and vote on them tonight.

Should the request fail, the authority voted to ask council to allow it to take over the project's funding and all future financial risk, provided council finalize the sale of the school district site based on a written agreement by the authority to cover the cost.

If considered by council, the authority's offer also would need council to ask the state to reassign grant funds to be used in the project to the authority.

Authority members believe Kohl's almost is ready to sign an agreement.

It was reported a Kohl's attorney notified authority chairman Rick Fenstermaker Tuesday night that a commitment from Kohl's is close, provided the city acquire the needed property and complete a land development plan.

But even the land development plan is a sticking point with council, according to parking authority member Ray Thompson.

He said it is routine to expect developers to have such plans in place before finalizing a deal, but it will cost about $50,000 more for the engineering, and council is seen as unlikely to commit that much.

Thompson bluntly has suggested some on council are stalling and the root of the situation could be political.

"Sometimes I wonder if they are trying to punish the city for electing a mayor they didn't want," he said recently.

During Wednesday's authority meeting, he said both the public and the Kohl's chain seem to be enthusiastic about the project and want it to happen, but Kohl's has a schedule that requires a site be ready for purchase by late April so it can build and open a new downtown store by November 2009.

They won't come if the city continues to drag its feet, he suggested.

Publicly, council members say they hope the project succeeds, but privately some say it's a risky venture.

"Everything has been 'no' at meeting after meeting after meeting," Thompson said.

"I am frustrated," Sides said.

"I don't mind that reasonable minds differ," added authority member David Abernathy, "but I really don't appreciate disingenuous communications."