CVS, Boulder City agree to contract

By Cassie Tomlin

Wednesday, Feb. 11, 2009 | 11:03 a.m.

CVS Pharmacy will demolish the shuttered Starview Motel and Fortune China restaurant at the corner of Nevada Way and Buchanan Boulevard within a year and in five years will build a store there, after it agreed to new requirements in a contract with the city.

The City Council Tuesday voted 4-1 to sell CVS a 5,400-square-foot parcel bordering Buchanan south of the highway so the pharmacy can build a store in place of the motel and restaurant. Councilman Travis Chandler voted no, saying the city isn't getting enough money for the land.

Dave Johnson, the pharmacy's real estate agent, said CVS doesn't yet own the motel and restaurant, but is in escrow and plans to close on the two buildings and the city's parcel simultaneously.

The city will receive $85,000 for the parcel, which was appraised at $54,000.

The council's vote followed impromptu negotiations during a recess in the meeting, so CVS and the city could draft final contract changes.

During the break, Johnson got approval from CVS by cell phone for City Attorney Dave Olsen to add to the contract that if CVS doesn't destroy and remove the buildings within a year, it would owe the city $48,000.

Also added to the contract was a provision that CVS will conduct studies to find if there are hazardous and toxic waste removal requirements.

The contract had already provided that in the event CVS neglected to demolish the buildings within a year, the city could demolish the buildings itself and seek reimbursement from the company.

Councilwoman Linda Strickland had asked for the addition to the contract.

Bill Smith, a former councilman who is running again for council this year, in November sent the council a letter saying the city wasn't getting enough money for the land and offered to pay $131,500, which is $48,000 more than CVS had offered.

Because the city was selling the land as a lot-line adjustment, the council didn't consider Smith's request, but Strickland said the contractual addition was a way to make the money Smith had offered.

Johnson said he's been working to buy the parcel for two years, and nine months ago bought the boatyard near the land.

Councilwoman Andrea Anderson said she's worked for many years to get the city's gateway intersection clean and was content with the price of the parcel.

"I'm satisfied that it's a good deal for the city, looking into the future and looking at how long it's taken us to get where we are," she said.

Cassie Tomlin can be reached at 948-2073 or [email protected].