Pathway steps in to block transaction; company had donated land as part of Line Creek Nature Area

A developer's bid to acquire about six acres of prime city-owned real estate for a proposed shopping center off Ga. Highway 54 west in Peachtree City is likely doomed.

That's because Pathway Communities, which donated the acreage as part of the 50-acre Line Creek Nature Area has stepped in to block the potential swap. Pathway is exercising a clause in the real estate contract allowing it to forbid any development from occurring on the land until 2016.

That would seem to end any prospect of Flexxon Operating's bid to acquire a 6.6-acre portion of the parcel for its proposed 146,000 sq. ft. shopping center on Hwy. 54 West near the city limits, on the site of the former Days Inn.

Flexxon officials have said the shopping center will be developed with or without the city-owned tract.

The downside of the collapsed deal is that Flexxon has ownership of the northern portion of the lake at the Line Creek Nature Area, which it intended to swap the city in exchange for the acreage along the highway. Flexxon has also threatened to use the Line Creek lake as its stormwater discharge area, though it is not clear if this could occur since the city owns the southern portion of the lake.

Pat Heaberg, vice president of commercial and industrial development for Pathway Communities, said the company wants to honor its "commitment to the residents of Peachtree City" and allowing the land to develop would "interfere with the overall character of the dedicated greenspace.

Heaberg also said lifting the deed restrictions would set a bad precedent and could jeopardize other greenspace preservation areas throughout Peachtree City.

"A major differentiating factor for Peachtree City is its abundance of greenspace and natural areas – a crucial cornerstone of successful development- and we look forward to seeing the continuation of greenspace preservation throughout the new development initiatives in Peachtree City," Heaberg said.

Capital City Development, which owns a tract further east on Hwy. 54 at the intersection of Planterra Way also had expressed interest in the 6.6 acre city-owned highway frontage at one time. Capital City is proposing to build a 182,000 square foot shopping center there including a 89,000 sq. ft. Kohl's department store and another 50,000 sq. ft. unnamed store that could be a large sports equipment and apparel retailer.

The Capital City site is just over 14 acres in size.

The Capital City proposal is larger than allowed on land zoned general commercial under the city's big box guidelines, which were enacted in part to help control and in some cases prevent the location of regional shopping centers in Peachtree City. The latest edition of the big box ordinance allows the city council to consider granting a waiver to the ordinance's size requirements that no store be larger than 32,000 sq. ft. and no entire shopping center be larger than 150,000 sq. ft.

The previous version of the ordinance, which banned shopping centers of such scale, was amended last year after it was challenged by the developer responsible for the third phase expansion of the Kedron shopping center, which included a Target superstore.

Since it became the primary developer of Peachtree City in 1979, Pathway (formerly known as Peachtree City Development Corp.) has donated more than 1,000 acres of greenspace and parkland to the city and Fayette County.