Decision to widen Route 28
paves the way for superstore

This story appeared in the Derry News on 29/07 and was written by Eric Parry.

DERRY | The chairman of the Town Council says he's "99.9 percent" certain Wal-Mart will build a super store in Derry after the council voted to begin work to widen Route 28 using town funds.

The council voted unanimously Tuesday night to spend up to $500,000 for design and other preliminary work on the $6.5 million widening. The project will expand the two-lane road to five lanes | two in either direction plus a turning lane | from north of Tsienneto Road to the Londonderry line. The super store's proposed site is off Ashleigh Drive, which runs off Route 28 about mid-way on the stretch to be expanded.

Wal-Mart has offered to pay $1 million toward the widening. The state would contribute $700,000, and the town would sell bonds to finance the balance of $4.8 million.

But the council balked at signing an agreement with the retail giant Tuesday after Councilor Kevin Coyle said it would give Wal-Mart too much control over the project. One clause in the pact would give Wal-Mart the power to tell the town when to begin construction but allow the company to back out of the deal at any time for any reason.

Councilors in favor of the agreement said it would let the town move forward with the project without spending taxpayer money. They also said it demonstrated a commitment by Wal-Mart to build in town | a point disputed by Coyle when he objected to the agreement Tuesday night.

"I'm not trying to block this project," Coyle said. "I'm trying to tell you this is a bad agreement. It commits us wholeheartedly and doesn't commit Wal-Mart."

Coyle said the town should start the project with its own money to avoid giving Wal-Mart control over the project. In the end, the council agreed to do just that.

Council Chairman Brian Chirichiello said he is convinced Wal-Mart will follow through on its plan to build a new store by the end of 2008 but believes the road widening will benefit Derry, even without the store.

"Wal-Mart is still coming; I'm 99.9 percent sure of that," Chairman Brian Chirichiello said Wednesday. "It's not a project for Wal-Mart, it's a project for the economic development of Derry."

Wal-Mart had agreed to put $500,000 in escrow to help the town start the design phase of the project, but it isn't likely the town will see that money any time soon, according to Chirichiello.

When they voted in September to widen a section of Route 28, councilors also voted to put a Tax Increment Finance (TIF) district in place to pay for the improvements.

The TIF district would allow the tow to repay the $4.8 million in bonds through increased tax revenues from the businesses that move in, thus avoiding the need to raise property taxes.