The city of Rock Island has yet to agree on a relocation assistance package with the owners of Hill & Valley Bakery, a key property the city needs to clear the way for a new Walmart at Watch Tower Plaza.
The owners of the bakery have an option to renew their lease for five years and could choose not to move, which would complicate the arrival of Walmart to the shopping center site on 11th Street.
"We'd like to move, but there's a cost to move that's pretty significant," said Hill & Valley president Doug Davidson.
City officials are keen to keep the bakery and its 200 employees in Rock Island, butMr. Davidson said moving the bakery will be complicated and expensive.
George and Nancy Coin sold the former Nancy's Pies business to New York-based equity investment firm Circle Peak Capital in 2005 but still own the building that houses the bakery at 3915 9th St.
The Coins lease the building to Hill & Valley, and, under terms of the lease,Hill & Valley could decide to stay put for another five years, according to Mr. Davidson.
The Rock Island City Council approved a proposed $1.5 million agreement to buy the building from the Coins in December.
Jeff Eder, Rock Island's economic development director, expressed confidence that a relocation package would be agreed on soon.
The city is attempting to buy all the lots at Watch Tower to make way for development of a Walmart Supercenter.
The city also is working on relocation assistance packages with several other businesses that lease spots at Watch Tower.Hill & Valley is the largest business at the site, and the most complicated to move.
Mr. Eder said the city had to convince the board of Circle Peak Capital to move Hill & Valley.But if they decide against moving, it might be possible to redesign the Walmart site to leave the bakery in place.
"We'd have a lot of work to do to redesign the shopping center," he said. "It's a possibility, but it wouldn't lay out things ideally."
The city also could use eminent domain - a legal process governments can use to force an owner to sell a property - to take ownership of the bakery.
"It is an option," Mr. Eder said. "We don't want to use it."
To date, the city has agreed to spend more than $6 million to buy properties at Watch Tower. Still to come is the cost of demolishing buildings and the cost of relocation packages for some of the businesses that will move from the shopping center.
Today is Thursday, May 23, the 143rd day of 2013. There are 222 days left in the year. 1863 — 150 years ago: Messrs. J. and M. Rosenfield have moved their leather and hidestore to the building formerly occupied by Temple Bufords's store. They buy and sellhides, pelts, furs, wool, beeswax, lard, tallow, etc. 1888 -- 125 years ago: The Rock Island Lumber Company has recovered 5,000 of the8,000 logs that were carried away by the Mississippi River flood last week. 1913 -- 100 years ago: John J. Ullemeyer has been awarded the contract to furnish RockIsland fire and police department members with uniforms, at the city's expense. 1938 -- 75 years ago: Work on Aledo's new $38,000 swimming pool was started thismorning at South Park when ground for the pool was broken by Mayor John W. Murphy. 1963 -- 50 years ago: Students and teacher at Moline High School called today "MissLeona Day" day at the school in honor of the government teacher who retires at theend of the school term. Although she's been teaching for 43 years at the school, Miss Dayfound a new way of arriving at the school this morning. At 7:30 a.m., a police squad carpulled up in front of Miss Day's home and escorted her to school. A caravan of students' cars joined the procession along the way. 1988 -- 25 years ago: Barbecue cooking and riverfront antics are planned for Discover the River Day Saturday in Leach Park, Bettendorf. A 5K run, wind surfing, a canoe race, hogcalling and more will round out the day under the Interstate 74 bridge.