IKEA and the City of Troy

I keep reading comments by individuals alleging that the City Council of Troy would not allow IKEA to build a store within the City limits. My understanding was that IKEA abandoned Troy because speculators were bidding up the price of property that they needed to purchase.

I did some research and came across a 2001 memo (item G-12) from Doug Smith, former City Real Estate and Development Director.

Here is what Doug said...

As a note for new Councilpersons, the City was approached by IKEA early in 2000. They were inquiring about trying to purchase the southeast corner of Rochester Road and Big Beaver for an IKEA store, which is a large furniture store. Council, on its trip to Schaumburg, saw one of the larger IKEA stores and had several reservations. IKEA was informed at that time, that for Council to even consider a request for rezoning, the IKEA building should not be predominately blue and yellow and “big box”, but would be a building that would complement Troy Marketplace, which sits immediately across Rochester Road. This would require that the building be predominately brick and glass, although a small portion of the building (the percentage was not defined) might display the signature blue and yellow, particularly facing the expressway, or a small amount around the entrance to the building. It was presumed that the building would have a front face on Rochester Road and/or Big Beaver, but both would be attractive sides of the building. Finally, there was some issue about size. Council would prefer something closer to 200,000 square feet, but left the issue open.

A representative from IKEA and their architect met with Doug Smith the last week of March and presented elevations which looked very much like the typical blue and yellow building that Council had seen in Schaumburg. It was 320,000 square feet and faced I75, and the back of the building had truck docks facing Big Beaver Road. Doug Smith indicated to them that the appearance (color) was unacceptable and that the truck docks facing Big Beaver were a non-starter to any further discussions. Doug Smith indicated that as previously agreed to with IKEA representatives, the entire building needed to complement the “Marketplace” development across Rochester and that meant primarily brick and glass. Furthermore, he indicated that the building had to face either Rochester or Big Beaver and preferably have a front-like appearance on both streets. The good news - they had proposed parking under the building and in a deck adjacent to the building, which was desirable because it provided some additional green space that enhanced the roadway and entrances. It was reiterated to them that the size may also be an issue, but until other items are effectively dealt with it probably wasn’t worth discussing. Please know that the parcel being considered for development by IKEA would have to be rezoned, and IKEA is aware that City Council is under no obligation to accommodate any rezoning request.

With a little further research, I found the statement below on page 2 of the Troy Planning Commission's November 27, 2001 minutes.

Doug Smith, Real Estate and Development Director, stated that IKEA has indicated they are no longer interested in a Troy store. The regional vice-president for the multi-state area transferred to Canada and the new vice-president thought the new store was too expensive.