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Bluefieldnews.net
For HNN by Art Harvath
Huntington Urban Renewal Authority chairman Ron Smith answered questions about the Pullman Square project at a news conference Friday. Most of the questions concerned the situation with Chi Chi’s.
As to a time table in dealing with Chi Chi’s, Smith said, “That’s a great question and I wish I had a crystal ball to tell you, but I think the issue of fairness and equity have always come forward to us.”
“We’ve used our basis of the appraisal to try to come up with a valuation,” he said. “Obviously, when we see the valuation of their appraisal…there may be a difference.” Smith said they would discuss the differences, if any, and address the fairness issue by giving them some relocation dollars to stay within the confines of Huntington and hopefully within Pullman Square.
“It appears that this restaurant is very profitable for them. I can only think that their profitability will be more enhanced by this project. I hope that within two weeks we can come to some kind of terms.”
Contacted by HNN Friday, Rob Carl, vice president of media relations for Prandium, Inc. said that the probability for an agreement in two weeks was slim. Chi Chi’s is a subsidiary of Prandium.
Smith was asked about using eminent domain if no settlement with Chi Chi’s can be reached in a timely manner. He replied saying “that is how the law is set up. This is the very reason why urban renewal authorities were given the unique power to have eminent domain to take from….public to private or from private to private. I hope it doesn’t come to that, but that is certainly one of the scenarios that lay out there.”
Smith made clear that the $975,000 offer was for the value of Chi Chi’s property, and not for the value of the business. “We can account for any relocation dollars that might assist them, and those are the two things that we can look at.” Smith added that by law those are the only two things HURA can consider.
Chi Chi’s has been offered a spot on the second floor of the project. When asked why Chi Chi’s wasn’t offered the prime space it now occupies Smith said that it was his understanding in talking with developer Tim Rollins that Chi Chi’s had told the developers that they were not interested in being part of the Pullman project. “At this time we find that Tim is in negotiations for this space right now with another restaurant.” Smith said that the alternative location offered Chi Chi’s was a “pretty good retail location.”
He said that he thought that Chi Chi’s was being offered a location next to the theater complex. Smith said it was also possible for the restaurant to locate at one of the buildings across the street, on the south side of third avenue.
The drawings for the project show plans for every building on the south side of third avenue across from Pullman Square.
Concerning the question of a possible conflict of interest and his role in the Chi Chi negotiations Smith, owner of Chili Willi’s Mexican Cantina, said that he has left negotiations to David Harrington.
“I guess it’s hard to take a scalpel and cut me loose from this situation. I am the chair of HURA and I have to follow through on some things. I understand about the perception. I view it as this, that Pullman Square is going to bring a lot of competition to our business and I welcome that competition.”
“I hope that Chi Chi’s stays here. We’ve had a good competition between the two of us and it hasn’t impacted either one of our businesses. If anything it has enhanced our businesses, so I don’t look upon that as an issue.”
