BENTONVILLE — Rumors of a Walmart Neighborhood Market in downtown started in August when tenants of the Midtown Shopping Center received notices their leases wouldn’t be renewed.
On Friday, the city announced a redevelopment of the center to be anchored by a 31,000-square-foot market.
Construction on the Midtown Shopping Center, just northwest of the city square on Second Street, is planned to begin June, according to a news release. The Benton County Assessor’s Office lists the property as being owned by Walton 5 & 10. Walton Enterprises, a company owned by Walmart founder Sam Walton’s heirs, maintains the property.
The three-story development will include ground-level retail storefronts, office space on the second and third floors and a three-level parking garage. The retail space will be located along Northwest Second Street to “grow the downtown shopping and entertainment experience,” according to the release from the city Planning Department.
Fast Facts
Midtown Shopping Center
• Location: Corner of Northwest Second and Northwest A streets
• Size: 2.72 acres
• Owner: Walton 5 & 10
• Square footage: 118,483
• Appraised value (2012): $2,294,500
Source: Staff Report
The new development will front the street with a parking lot nesting behind the building, said Doug Bryant with Walton Enterprises. The center is separated from Second Street by a large asphalt parking lot, differing from surrounding buildings downtown that feature storefronts up to the sidewalk.
“The redevelopment will reflect the spirit of downtown when you look at the buildings,” said Daniel Hintz, director of Downtown Bentonville Inc. “It will contribute to the overall vibe of the downtown square.”
Harps Food Store is the largest tenant in the center, though about 10 other businesses ranging from a children’s theater company to a dry cleaner also rent space in the development. Hintz said Downtown Bentonville is working with tenants to ensure they are able to transition to other locations during construction.
“They all directly contribute to the success of downtown and help build on the momentum,” he said.
Harps has already started construction on a new location near the corner of Northwest 12th Street and North Walton Boulevard. The 37,000-square foot store should be open in the spring, according to Kristy Hale with Harps.
The shopping center will provide more parking for a downtown area that attracts thousands of people to monthly First Friday events, its weekly farmers market and the square.
“The decision by the developers to add parking beyond what their development required is a plus for customers and event patrons in the downtown area,” said Mayor Bob McCaslin. “The new parking facility will boost Bentonville as a destination due to the ability to park free within close proximity to the many activities taking place on our square.”
Increased parking, along with more office space, will fill a gap downtown, according to Tom Ginn, vice president of economic development for the Bentonville/Bella Vista Chamber of Commerce.
Ginn said supply for office space is “not that great” downtown, forcing some offices to take up potential retail space at ground level. Moving offices upward could free up storefronts for retail and provide “critical” sales tax, he said.
The Neighborhood Market will be the second in Bentonville, joining a market on Southeast 14th Street. Daniel Morales, director of communication and community relations at Walmart, said planners still have “a lot of work” to do on the store.
“I think this store is going to be a part of the solution for folks who need a job or want more convenient options close to where they live or work,” Morales said. “And there are a lot of people who work in downtown Bentonville.”
Developers haven’t submitted any designs to the Planning Commission and will probably not require a rezone of the property, already designated as downtown core, according to Troy Davis, city planner. The development will likely need property line adjustments and approval of large-scale development plans. The plans must be submitted about a month before approval by the commission.
The Neighborhood Market will be just steps from the Walmart Visitors Center and Sam Walton’s 5 & 10 on the square. The center was built in 1967 by Walton and was home to Walton’s and Phillip’s grocery stores over the years. The property switched hands, but came back to the Walton family in 1986, when it was sold by Phillips Food Center to Walton’s 5 & 10.
Bryant said the time was right to look at renovating the center. The expiring lease with Harps opened up a good opportunity to pursue redevelopment of the aging building, he said.
The project is indicative of continued private sector investment downtown following the city’s commitment to revitalizing the square, Hintz said.
“The city has done an amazing job setting the stage,” he said. “What we continue to see is private sector investment, which is absolutely vital after the continued city investment. Midtown is certainly one of those projects.”