Relocating to South Jersey. It is a thought many South Philadelphians have entertained, and now Swedish home-furnishings retailer IKEA is pondering the same thing.
This summer IKEA announced its interest in the vacant CSX Corp. rail-yard property at Columbus Boulevard and Snyder Avenue as a site on which to build a 300,000-square-foot store.
The retailer wants to begin construction by next spring and open by spring 2004, but first needs the property to be rezoned from industrial use to commercial. Opposition to that change has company officials eyeing unspecified sites on the other side of the bridge in Camden County.
IKEA’s director of real estate, Pat Smith, said the company will proceed with plans in New Jersey to meet its targeted opening date if City Council does not approve a variance before the end of this year.
"We will open a store in 2004," Smith said. "It is a question of whether it is going to be in South Philadelphia or South Jersey. One way or another, we are going to be building a store by the spring of next year."
Still, Smith said he remains "extremely optimistic" the deal will go through to open in the city.
Opponents to the zoning change include Local 1291 of the International Longshoremen’s Association and the Philadelphia Regional Port Authority, which manages the international seaport. Both have stated they believe the land earmarked for the IKEA project is valuable to future expansion of the port.
State Rep. Bill Keller, a member of the longshoremen’s union whose district includes the CSX property, said the city must stop encouraging "commercial incursion into the industrial ports."
The legislator said he is not opposed to commercial development along the Delaware River. However, he maintains the IKEA proposal violates an agreement between the city and the PRPA to preserve waterfront property south of Wal-Mart at 1601 S. Columbus Blvd. for industrial use.
"I’m for commercial and even residential [development]," Keller said, "but we have to do this strategically. It just can’t be done willy-nilly … let’s sit down and talk about it."
Philadelphia Commerce Director James Cuorato supports the expansion of the port, but said he feels everything possible should be done to accommodate IKEA.
"They are more than a furniture store," he said. "They’re an attraction for the whole region. They will bring people in from everywhere."
IKEA has not asked for any financial incentives, such as tax credits, to build in the city, Cuorato noted. Additionally, he said, the new store would generate $100 million in sales annually, and would employ 500 full- and part-time workers. Smith confirmed those figures.
Cuorato is unaware of any port plans involving the CSX property and said, "If it had been important for an industrial reuse, presumably something would have happened there by now." He also noted there are several other vacant plots of land south of Oregon Avenue and offered to work with the PRPA to acquire those sites.
First District Councilman Frank DiCicco said one local port company has expressed preliminary interest in expanding its business to Columbus Boulevard and Snyder Avenue. The councilman declined to name the business, but said it contacted state Sen. Vince Fumo’s office regarding its plans.
DiCicco, who would introduce the variance legislation to Council, has been mediating negotiations on the IKEA plan. He met with IKEA representatives last week, and said the port authority and Local 1291 have sent him letters asking him to preserve industrial waterfront property. DiCicco is working on arranging a meeting between Cuorato and the PRPA.
"We are all talking," DiCicco said. "It is not on the back burner. It’s on the front burner."
To keep with IKEA’s timetable, Council would have to vote on the variance before breaking for winter recess in December. In the event a deal cannot be reached, DiCicco has suggested a few alternative locations within his district, but declined to name them just yet.
"I want to see IKEA in Philadelphia, whether it is in my district or any place else," he said. "It is good for Philadelphia."
Keller and Cuorato both feel a deal is still possible.
"I know this has been taking longer than they wanted and expected," Keller said, "but I hope they can continue. And hopefully we will come to a resolution that will help everyone."
Cuorato senses IKEA officials are getting impatient, and said they have reminded the city about their timetable.
In the meantime, the company continues to prepare for building in South Philly. Last week IKEA shared architectural plans with members of the Pennsport Civic Association, and tonight it will meet with members of the Whitman Council. Response from residents has been favorable, Smith said.
If IKEA does build in Philadelphia, it would be the company’s first urban store in the nation.
The CSX property is IKEA’s second choice. This summer the company had its eye on vacant land at Spring Garden Street and Columbus Boulevard, formerly the site of a trash incinerator. IKEA decided against developing on the 20-acre property, citing environmental and size concerns.
The furniture store wants to build on 23 acres of the 44-acre CSX lot. The remainder of the land would be developed by the Goldenberg Group, owners of Snyder Plaza. The new shopping center also would include Lowe’s Home Improvement Warehouse, Costco and Best Buy.
The Philadelphia IKEA store is part of a companywide expansion plan to open 50 new stores during the next 10 years.
