Planning for the old Wal-Mart building has been on hold since 2007 after a real estate developing firm stopped work on its proposal.
Due to high costs and real estate complications, the old Wal-Mart building at 419 S. Locust St. has been vacant since 2005.
According to Oxford's Economic Development Director Alan Kyger, the situation regarding the old Wal-Mart building is very complicated.
According to Kyger, Wal-Mart currently owns the building and is trying to sell it for $1.8 million. At the same time, Wal-Mart is leasing the land from a real estate firm with the lease set to expire in 2019.
"It's expensive and difficult (to redevelop the Wal-Mart) because of the two entities controlling the property," Kyger said. "They are currently looking for someone to sublease the land from them and looking for someone to buy their building. Nobody wants an empty 'big box' sitting around."
In 2007, a real estate developing firm, different from the owners of the Wal-Mart property, proposed tearing down the old building to build 30,000 square feet of commercial space, with student housing in the back lot.
According to City Planner Kathy Dale, the proposed 30,000 square feet did not fulfill general business zoning requirements.
"(The firm) initially had a hearing for their 30,000 square feet plan, but it was tabled and the city said, 'Come back again with a plan for 40,000 square feet,'" Dale said.
However, when the city approved the firm's revised proposal, the firm never returned with a final development plan.
Zoning issues that complicated this situation are central to the problem of the lot's redevelopment. According to Kyger, while many developers want to build student housing in place of the empty building, the property is zoned for commercial business.
"The city is sensitive to ample student housing, but we also want to see that space redeveloped," Kyger said. "It's just another little quandary inside all the little boxes of issues."
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Kyger said in July he spoke with a real estate developing firm interested in building a hotel on the property with commercial stores facing Locust Street.
Kyger would not release the name of the firm.
He said that although the city was interested in the business from the hotel, there was concern the hotel would be economically viable for the commercial storefronts.
However, since Wal-Mart still owns the building, Kyger said that ultimately it has the power to choose the new occupants.
"Wal-Mart wouldn't let any business just go in there," Kyger said. "They're not going to just turn it over to a Target."
According to Kyger, the Kroger on 300 S. Locust St. has expressed interest in expanding and looked into the old Wal-Mart property, but Wal-Mart did not want the direct competition.
"We were looking at the space just based on the site and location," said Kroger Unit Manager Ed Begley. "They obviously don't want to sell it to a competitor. So, basically it was not available to us."
Despite the complications, Kyger remains hopeful.
"When you think about it, it's not a dead issue, it's just a real tough economic situation," Kyger said. "(Interested developers) don't realize that they have to also buy the building, when all they want to do is tear it down and just take over the lease."
According to Kyger, city council is currently exploring the empty building for the location of the new police station and courthouse.
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