Campbell's asks Camden to acquire, raze Sears Building

Jun 25, 2009 (The Philadelphia Inquirer - McClatchy-Tribune Information Services via COMTEX) -- CPB | Quote | Chart | News | PowerRating -- Campbell Soup Co. has asked Camden officials to acquire the city's historic Sears, Roebuck & Co. store through eminent domain so that it can be knocked down to make way for an office park the company is developing.

The request, submitted on June 17, begins a new chapter in a long dispute over the vacant Greek revival building on Admiral Wilson Boulevard, now surrounded by a 100-acre redevelopment zone.

Campbell, the lead developer of the site, is spending $90 million to build a 40-acre world headquarters, to be completed in the spring, and a 60-acre office park for other businesses.

The lot occupied by the 82-year-old store, visible to those going to and from the Ben Franklin Bridge, is needed for those plans, the company has said. The building has been on the National Register of Historic Places since 2000.

A company spokesman said Campbell had offered about $3 million, more than three times the property's appraised value, to owner Ilan Zaken, who purchased the graffiti-prone building in 2007 with plans to turn the space into a store, offices and other uses.

But after an apparent agreement on the sale in March, Campbell spokesman Anthony Sanzio said, Zaken and his attorneys stopped returning the company's calls. Sanzio said Campbell had made concessions, and Zaken had agreed to drop a lawsuit it has pending against Campbell.

"Now we have the worst-case scenario: a vacant building that continues to suffer neglect sitting in the middle of an area that is being redeveloped," Sanzio said.

A man who answered Zaken's cell phone yesterday said Zaken was out of the country. Zaken's attorney, Jim Maley, who is mayor of Collingswood, would not discuss details about the company's eminent domain request.

"We don't know anything other than what reporters are telling us," Maley said.

"I'm not going to comment on Campbell's on-again, off-again [plans]: 'We're not going to take the Sears building. We are going to take the Sears building,' " he said. "We'll check out what's going on and deal with it. I'm not negotiating the sale of the building through The Inquirer. Campbell apparently likes to do this through the newspaper."

When Campbell announced the redevelopment plans in 2007, the company threatened to leave the city where it was founded in 1869 if it could not raze the old store.

Preservationists and city activists objected. The structure is considered iconic by some, though it has mostly sat vacant since 1971.

Three lawsuits were filed, and one -- which alleged that the chairman of the planning board that approved the redevelopment had a conflict of interest -- succeeded. The building was protected.

Campbell, the only Fortune 500 company based in Camden, then modified its redevelopment plan to wrap around the building. Early this year, the company said, those plans were changed again when Zaken offered to sell the building.

In order for Campbell to acquire the building, the Camden Redevelopment Agency must recommend to the city planning board that the site be included in the redevelopment zone. The agency expects to vote on the matter Wednesday.

City Council would make the final decision, said Saundra Johnson, executive director of the agency.

A property can be purchased through eminent domain without a seller's consent if it is part of a redevelopment zone.

Eminent domain proceedings would be held in a courtroom, where a judge would determine a price for the redevelopment agency to pay Zaken. The agency would sell it to the builder of the Campbell office park.

Campbell sent its letter requesting eminent domain to Johnson and Camden's state-appointed chief operating officer, Theodore Z. Davis.

City Council President Angel Fuentes said the matter needed study, but was critical of Zaken, who he said "sort of lied" to the city when he promised that he would rehabilitate the building.

"We have to make sure there's [tax] ratables," he said. "Do we want to continue with a building that's not being used and getting old?"

Contact staff writer Matt Katz at 856-779-3919 or mkatz@phillynews.com.

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