By Gigi Wood
Panera Bread announced plans in May for opening its second Coralville location, at 213 N.First Ave., where Taco Bell was located before it was flooded in 2008.
The restaurant was expected to open in August. The land remains undeveloped and now a “for sale” sign is displayed.
“Panera Bread of Iowa has chosen not to build a free-standing bakery-café with a drive-thru at213 First Ave.in Coralville, as originally announced in April 2011,” Panera Bread of Iowa spokesman John Kauffman stated in an e-mail.
According to media reports, Coralville officials were unaware of Panera’s decision to not build. Tuesday afternoon, Mr. Kauffman said Coralville was well aware of Panera’s decision.
“Panera Bread of Iowa was very surprised by (Coralville) City Manager Kelly Hayworth’s comments to local news outlets that city officials were ‘not sure of the reasons’ why Panera Bread of Iowa is no longer building a bakery-cafe at this site,” Mr. Kauffman stated. “Mr. Hayworth was a party to various meetings and correspondence related to the events that lead to Panera Bread ofIowa’s decision to not build the bakery-cafe. The decision was made after assurances to Panera Bread ofIowaby the city ofCoralvilleregarding its nearby flood wall plans were not kept, and revisions to the flood wall plans caused major delays to the construction of the bakery-cafe.”
Panera’s news release states: “Two weeks prior to the June 6, construction start-date agreed upon by Panera Bread of Iowa and the city of Coralville, the franchise was informed of changes to the city’s flood wall plans. These changes would have not only delay construction significantly, but would have also required the franchise to forfeit a portion of its land in order for the city to proceed with the flood wall in a new location on the property. Though the city has since resolved this issue, it failed to do so in a timely manner and the window of opportunity for Panera Bread ofIowato develop this property into a bakery-cafe has passed.”
“With the holidays fast approaching, Panera Bread ofIowaplans to focus its efforts on continuing to provide outstanding service and meals its customers can trust at its two existing locations in Sycamore Mall (in Iowa City) and Coral Ridge Mall (Coralville). Panera Bread of Iowa remains committed to its plans for expansion elsewhere throughout the state and region in 2012 and beyond.”
Mr. Hayworth said city officials were unaware the project had stopped.
“We were surprised and continue to be surprised because we did meet with them about the project and the flood improvements that were needed,” he said. “In fact, we didn’t know they weren’t doing the project until the city attorney made contact with them to see whether or not they were moving forward.”
Mr. Hayworth said Panera asked the city to move some utility lines in order to make the project viable, so the city worked with MidAmerican Energy to do so. The business also asked the city to move the flood wall along the property to make room for more parking stalls.
“Our staff and engineers did that and were able to successfully do that,” Mr. Hayworth said. “So we were surprised that they decided, after we made all the efforts to do the things they requested or said was causing them problems, that they decided to not do the project.”
Mr. Hayworth said Panera never told the city that delays caused by moving the flood wall would cause the project to end.
“They never indicated that to us before,” he said. “It was a very complicated process and we had to include MidAmerican in that process to see if it could be relocated.”
Mr. Kauffman said Mr. Hayworth’s information is incorrect.
“Our architectural consultants continuously worked with Coralville city officials from January 2011-May 22, 2011 and all plans were centered around the flood wall being located in an area of the property that would not affect our ability to build the bakery-cafe with a drive-thru to our corporate specifications,” Mr. Kauffman stated in a later e-mail. “The flood wall was moved from this (Panera’s requested) location by the engineers representing the city of Coralville, and Panera Bread of Iowa was informed by e-mail of this change on May 23, 2011 at 1:10 p.m. We have documentation of this e-mail.
“After this, meetings were held to discuss our concerns and inability to develop the property as we had planned it if the flood wall were to remain in the new location,” he stated. “Panera Bread ofIowawas informed that the wall had been successfully moved to its original position on August 26, 2011. We, however, informed the city ofCoralvilleby letter on August 30, 2011 that we were no longer moving forward with the project. We have documentation of these letters, as well.”
“Unfortunately, it is our belief that Mr. Hayworth is grossly misinformed on the timeline of this project,” Mr. Kauffman stated.
It would have been the third Panera site inIowawith a drive-thru; the others are in Davenport and Council Bluffs. The location was also expected to offer catering and employ more than 60 people.
