Since Friday, you've all had much to say about the news of Ukrop's closing in Roanoke. Thanks for weighing in. In case you missed it, here's the latest story on the future of Ukrop's soon-to-be vacant store in Roanoke.
Also, I want to address some comments by some of you, expressing concern that the city of Roanoke has used taxpayer dollars to fund the Ivy Market project. No taxpayer money has been used to fund this project.
The developer, IMD Investment Group, receives incentives based on the performance of Ukrop's and Walgreens. This means that the city considers the tax revenue generated by these two retailers before IMD actually receives any kind of payment.
When the city crafted this agreement in 2004, officials estimated that the development would generate at least $1.4 million in tax revenue. The contract says that IMD would receive up to $600,000 for 15 years, if the stores generated this amount. So, the city had hoped to recoup about $800,000 a year in retail taxes from Ivy Market.
This is more money than the city would have received if this site had remained in its former state. You may remember that this Ukrop's site was once overgrown with weeds and known to many as a "hobo-jungle."
It's unclear what will happen with this agreement now that Ukrop's will be closing. If IMD finds another store to fill the Ukrop's spot, the tax incentive will stay intact, according to city officials.