WASHINGTON — Two years after Walmart backed out of plans to anchor the redevelopment of Skyland Town Center in Southeast D.C., Walmart has agreed to pay the District $1.3 million.
Walmart’s decision stalled the redevelopment project and ended the promise of jobs in one of the District’s poorest neighborhoods.
“When Walmart terminated its lease at Skyland, an underserved part of our community was deprived of jobs and retail options that had been promised,” said D.C. Attorney General Karl Racine, who announced the settlement Thursday.
“My office took action on this matter because District residents expect corporations and developers to honor their commitments,” he said.
In the settlement agreement, Walmart denies it engaged in any wrongdoing related to its termination of the Skyland lease and says the decision not to build the store at Skyland was based purely on economic factors and unfavorable business conditions.
“We’ve been sensitive to the issues around the Skyland Town Center, and we have worked with the District to resolve them. We believe our decision to not pursue the Skyland project was appropriate,” Walmart said in an emailed statement.
Walmart had also committed a store at Capitol Gateway, a redevelopment project in Northeast D.C., but canceled those plans at the same time it terminated the Skyland lease.
Both decisions, according to Walmart, were part of the company’s larger announcement in early 2016 to close 269 stores worldwide.
Walmart has opened three stores in the District on Georgia Avenue Northwest, H Street Northwest and Riggs Road Northeast.
Redevelopment of Skyland Town Center got underway last month after developers secured financing for the project.
