Ex-Kmart building demolition paves way for $5M development

Plans are to develop the site into a mix of retail and restaurants.

Revitalization of the city’s downtown area is gaining momentum as plans for a $5 million redevelopment project in Xenia Towne Square move forward marking the city’s most significant development project since a tornado destroyed much of downtown more than four decades ago.

City officials and the business community said plans to convert the 5.6 acre site, home of the former Kmart building and parking lot, into a mix of retail and restaurants will mark a major milestone for the city.

“This project signals the dawn of a new day in Xenia,” said Lee Warren, a city spokesman. “The old Kmart building had become an eyesore in downtown Xenia. It was deplorable. Now with its removal, we can make progress with new development that will meet demands of our citizens and revitalize downtown. We’re extremely excited.”

Construction is expected to start in the spring.

While plans for the shopping center redevelopment include retail stores and restaurants, some residents have said they would like to see a grocery store included.

“I’m lucky I have a car,” said Jim Quirk, a Xenia resident. “I can go to Walmart or Kroger. But if you look around, a lot of people in mobile units they can’t get to the food.”

Xenia Towne Square, which was touted as a “neighborhood mall” opened in 1980, six years after a tornado demolished the downtown area and killed 33 people. The 55,000-square-foot Kmart building was an anchor store on the corner of Galloway and West Market streets and cost an estimated $2 million to build. Overall, Xenia Towne Square cost an estimated $13.5 million. Most of the money, $7.5 million, came from local, federal and state government funding while the remaining $6 million came from private money.

Now, city officials, residents and the business community are looking to attract jobs and businesses to the area and restore a sense of pride in the city.

“It has aged over the years,” said Xenia City Planner Brian Forschner. “It’s a chance to redevelop it and bring in new businesses and amenities that benefits downtown just as well as all residents.

In recent years, several businesses in Xenia Towne Square have abandoned the shopping center. Radio Shack and Ann’s Hallmark Shop closed their locations last year, and Kmart closed its location in 2014 eliminating 57 jobs.

“Whenever you bring in new business it helps the community as a whole,” said Alan Liming, the Xenia Area Chamber of Commerce executive director. “Not only for the businesses, it gives more goods and services to the people in our community.”

Xenia Shoe & Leather owner Tim Sontag said the redevelopment project is evidence someone is willing to invest in the city’s downtown area and Xenia is a good place to live and do business.

“The big empty buildings are not welcome,” he said. “Obviously we’re hoping that whatever goes in there will be a real positive addition to downtown and Xenia in general.”

After Kmart closed, a developer proposed a year later to convert the former retail building into a movie theater. When those plans dissolved, the city council approved the building sale to Northern Kentucky based commercial real estate developer Brandicorp for $800,000 on May 26.

The planned movie theater was part of a $20 to $22 million Xenia Towne Square redevelopment project that included retail space and restaurants. The project was also linked to a $2.6 million entertainment center, in the former Fulmers grocery store building, that would have included a 14-lane bowling alley, a laser tag course, an arcade, a party/banquet area and a sports bar.

“The citizens have remarked how they would love to see the building torn down or remodeled in some kind of way, said Xenia Mayor Marsha Bayless. “We knew that it was in too bad of shape to be fixed up, so it had to be demolished. So it’s real exciting. It’s like turning over a new leaf and giving some life to this downtown area.”


Xenia Towne Square by the numbers

$5 million: The estimated cost of the redevelopment project in the former Kmart building and parking lot area.

$250,000: Approximate amount the city paid for the Kmart building and parking lot area.

$800,000: Price of the former Kmart building and parking lot sold to Brandicorp on May 26.

5.6 acres: Size of the former Kmart site.

57: Number of jobs eliminated when Kmart closed.

The Dayton Daily News is committed to covering economic development in the city of Xenia and will continue to follow this story as news develops. Like the Greene 90 on Facebook and follow us on Twitter

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