Rising construction costs have delayed the groundbreaking of a Whole Foods grocery store in Eugene, according to Jenny Ulum of the Ulum Group public relations firm, which represents the property owners.
Ulum said the construction has been delayed because of the dramatic increase in cost for raw materials and the spike in interest rates on loans in the past year. She said several factors, including the price of fuel and the effects of Hurricane Katrina, contribute to the rising cost of materials.
“(Steel) is a scarce commodity right now,” she said.
Jennifer Parsons, spokeswoman for the organic and specialty grocery store chain, said the company’s plans are still firm.
“Whole Foods is definitely moving forward with a store in Eugene,” Parsons said.
Earlier this year, the Eugene City Council voted to approve the land swap involved in the Whole Foods project and also voted to build a parking garage adjacent to the store. While many considered the step as the key to jump-starting the building process, the vote was just one small step in a multi-part process, Ulum said.
After the city approved the construction plan, which involved a land swap, the next step was calculating the cost of the project, she said. The project will be delayed indefinitely while the builders look for ways to make it financially viable.
The International House of Pancakes restaurant recently extended its lease on the property through the end of October and may stay longer – the result, not cause, of the delay. Ulum said that when construction begins, property owners will give IHOP a notice to vacate but until that time there is no reason to force the restaurant to close. Ulum said that delays such as this are part of life in the construction business and that there is “no telling or predicting” what the future of the project is at this time.
While the public parking garage approved by the city council is a separate project, it was to be physically connected to the building, so without the Whole Foods store, there is no plan to build the garage, said Mike Sullivan, manager of the Eugene community development division.
Sullivan said the redevelopment of the entire city block was connected to the Whole Foods project. If plans change, the city would have to “re-analyze” future options for the site, but that he has “every confidence” the project will eventually be completed.