Atlanta News 8:32 p.m. Tuesday, May 25, 2010

Commerce could hum again in massive former Sears complex

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The Atlanta Journal-Constitution

The former Sears, Roebuck and Co. complex on Ponce de Leon Avenue, more recently known as City Hall East, cleared a hurdle Tuesday night that would allow it to again hum with commerce.

Sears, Roebuck and Co. began to build the massive retail store and catalog distribution center on Ponce de Leon in the 1920s. More recently, the 2-million-square foot complex housed a second city hall.
AJC file photo Sears, Roebuck and Co. began to build the massive retail store and catalog distribution center on Ponce de Leon in the 1920s. More recently, the 2-million-square foot complex housed a second city hall.

Atlanta’s Zoning Review Board voted to approve new conditions for the site that would allow a major anchor tenant -- such as a Target or REI -- to occupy a portion of the mammoth building.

The vote allows an anchor tenant to occupy up to 150,000 square feet and changes green-space requirements. Two neighborhood groups attended the meeting to support the proposal, which was introduced by Councilman Kwanza Hall.

Atlanta City Council must approve the new stipulations, but the vote was an important step toward changing the site's master plan.

Sears, Roebuck and Co. began to build the massive retail store and catalog distribution center in the 1920s. More recently, the 2-million-square foot complex housed a second city hall. Now, Mayor Kasim Reed wants revenue from the building to bolster the city's cash-strapped budget.

For years, a development group talked of turning the complex into a giant residential project, rimmed with parks, but the recession and housing market crash made that idea less feasible.

More recently, a new lead developer emerged. Although no contract is on the table, Atlanta-based Jamestown is negotiating to pay up to $27 million to buy the complex from the city and develop a retail center. They also are considering a “technology hotel” for servers and digital equipment, offices and several hundred apartments for the complex.

Kit Sutherland lives in the Glen Iris lofts, across the street from City Hall East. Though a Whole Foods, PetSmart and Borders are nearby, she said, “There is no place to buy socks,” in the Old Fourth Ward. She would like to see stores such as Crate & Barrel, with goods for the home, or REI and Target.

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