Purchase offer accepted by Home Depot in Cottage Grove
After many years of speculation on the future of the vacant Home Depot building in Cottage Grove, the home improvement franchise has accepted a purchase offer from a developer to take over the empty 95,000-square-foot building.
City Administrator Ryan Schroeder said a deal is in the works, but it is unknown if there are “any contingencies in that offer or what the timeframes may be.”
Mayor Myron Bailey said he wasn’t sure how much the offer is for, but did say that a recent bidder, who was not chosen, placed $2.5 million on the table.
Bailey said he met with representatives from both Home Depot and the expected developers during the two-day International Council of Shopping Centers convention in Las Vegas last week.
“It’s really kind of been an emotional rollercoaster,” Bailey said of the last seven years. Home Depot, 7210 East Point Douglas Road, closed its doors in Cottage Grove in 2008.
He said talk during the ICSC convention turned to possible tenants, adding that developers foresee “multiple end users” anchoring the site, including L.A. Fitness.
The gym was slated to move into a portion of the building in 2012, however the deal fell through.
Another piece of the redevelopment puzzle remains incomplete as the adjacent Rainbow Foods, which anchors the opposite end of Grove Plaza, is expected to either be sold or closed.
“I think part of the uncertainty (in finding tenants) is what’s going on on the other end of the mall,” Bailey said.
Rainbow building owner Howard Levy met with developers during the ICSC conference, Bailey said, and a deal was close to being signed.
“We did talk with Howard and his partner regarding the site and the developers even offered their brokers to help sell the property should Rainbow close,” Bailey said. “The developer of Home Depot wants to fast track redevelopment.”
Levy could not be reached for comment.
Bailey said Levy and his partners expressed interest in possible residential construction occurring in the plaza, but developers reaffirmed that the mall is still a viable retail center.
“It’s very refreshing to hear that,” Bailey said. “Now the quandary we’re in is finding what works best for that space.”