Metcalfe's pulls out of E. Wash Ave. project | Business
In a message to a city council member, representatives working to redevelop part of a near east side block said the deal to include a local grocery store chain is kaput.
District 2 Alder Ledell Zellers posted a message on the city website at 8:04 a.m. that she said she received from Otto Gebhardt III, the developer, and Tim Metcalfe and Kevin Metcalfe, the grocery store owners.
According to the statement, allegedly signed by all three main coordinators, Metcalfe's and Gebhardt Development are "amicably" parting.
"After months of work and negotiation, Gebhardt Development and Metcalfe's Market were unable to come to terms to move forward on the 800 Block East Washington project together," the statement read.
The development was proposed in February to build a full-block, mixed-use building to include a Metcalfe's grocery store, commercial and retail space and rental units.
The statement to Zellers said Gebhardt would be looking for another store to replace Metcalfe's in the development.
Zellers said despite the Metcalfe's exit from the project, she believed the development would proceed once a new store is found to join the building.
"A grocery store is very important to the development," Zellers said. "But I'm very optimistic that the developer will be able to work through this."
Zellers said Metcalfe's backing out at this point would set the project back, but not kill it altogether.
"The time has been delayed already," Zellers said. "Yes, not being able to secure an agreement -- probably several months ago is what they would have wanted -- is a setback. But again, I'm optimistic."
Metcalfe's owns two stores in Madison, including one at Hilldale Mall on Midvale Boulevard, another at West Towne Mall on Mineral Point Road, and a store in Wauwatosa.