Skylands Walmart Suffers Big Delay

The construction of a Walmart at the $220M Skyland Town Center is at a standstill due to a 1997 covenant that prohibits the operation of a supermarket or pharmacy close to the Safeway across the street. Lead developers Rappaport Cos and WC Smith purposely placed the Walmart and CVS outside the restricted area that runs through the center of the 18-acre development site. However, the parking lots may sit within the restricted area, potentially inviting a Safeway lawsuit, the Washington Business Journal reports. Financing has been delayed until the covenant provision is condemned. Safeway spokesman Craig Muckle says they've seen the plans for Skyland and don't see the parking lot as a violation. But the best way to be sure is for Mayor Bowser to nullify the Safeway covenant restriction, says DC councilwoman Yvette Alexander. Rappaport CEO Gary Rappaport has made it clear several times that without Walmart there is no Skyland. It's expected to include 476 mixed-income residential units and 342k SF of retail. Walmart isn't expected to open until 2017. [WBJ]

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