Complex new design accounts for slow closure on Wal-Mart deal

A complex new warehouse design caused Wal-Mart to move slowly on closing escrow on land for its new distribution center at the Tahoe Reno Industrial Center east of Sparks.

The company announced in early December that it planned the 880,000-squarefoot distribution center at Patrick.Only last week, however, did the company close escrow with First American Title.

Wal-Mart purchased 140 acres with an option on another 10 acres for possible expansion.

Caution about the warehouse design and its use on the site accounted for the slow-motion closing, said J.

Michael Hoeck, a broker with Colliers International in Reno who represented the giant retailer.

The structure of the distribution center essentially will be supported by its racking system, and its walls will be suspended from the roof structure.

The design,Hoeck said,meant Wal-Mart's engineers wanted to take a second look to ensure the Patrick site was appropriate.

It passed muster, and Wal-Mart closed the deal.

In actuality, there had been little doubt about Wal-Mart's intentions because the company had made hefty non-refundable deposits on the land and had committed itself publicly, Hoeck said.

Lance Gilman, the developer of Tahoe Reno Industrial Center, said Wal-Mart is expected to break ground shortly.

He said the four-lane highway known as USA Parkway, a road that ultimately will run 16 miles from Interstate 80 to Highway 50 through the industrial center, is being extended three miles to the Wal-Mart site.

The distribution center is expected to employ 500 when it opens in mid-2006 with potential growth to 700 workers.