The mayor had recently sent IKEA a letter requesting it investigate 14 areas of concern the city had with the venture. The project, which called for the development of a store in excess of 300,000 sf, was in the approval process with the city.

"During lengthy meetings between IKEA and city officials, we have jointly and amicably concluded that the proposed IKEA project is not in our mutual best interests," Mayor Idoni stated. "After the release of the 14 points IKEA listened closely to the concerns and responded with a revised plan that is commendable. However, there were certain points relating to store size that for timing reasons could not be met."

Jim Gdula, project manager for the IKEA New Rochelle project, noted that the revised plan included the introduction of residential apartments, the relocation of businesses and homes on site, an increase in parking facilities and amenities to the Fifth Avenue area. One of the main issues of concern raised by the mayor and concerned citizens at prior public hearings was the traffic impact to local roads caused by the IKEA store. IKEA's Gdula noted the company concluded that the only way to adequately address the traffic concerns would be to add exit ramps to Exit 17 of the New England Thruway (I-95).

"However, to justify the expense of the ramps, we would need to increase the size of our store to generate the additional revenue required to rationalize this expense," Gdula stated. "Clearly, a larger store runs counter to the wishes of Mayor Idoni and others in the community. In addition, it is our understanding that approval for the ramps is a lengthy, uncertain and complicated process. As a result of these issues, it is our assessment that a store consistent with our business objectives cannot be built. After extensive discussions with the mayor, we have mutually agreed not to proceed with our plans for the store."

The mayor noted that the city will continue to work to redevelop the Fifth Avenue area of the city. IKEA will remain involved somewhat in the process, at least for the moment, since the retailer owns approximately 70% of the land earmarked for redevelopment.

Instant Insights /

IKEA Nixes Controversial New Rochelle Project

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