Construction has begun on road improvements at 31st and Iowa streets to make way for a new Home Depot, but it won’t end without controversy.

Negotiations have collapsed between the city and Rubenstein Real Estate Co., the company that owns the intersection’s southeast corner where Kmart is located, to buy some of the Rubenstein land to make room for some of the improvements.

So city staffers are now recommending the Lawrence City Commission rescind its plan to buy the land and to change the road design so the Rubenstein property won’t benefit from the improvements.

Commissioners will decide the matter at their next meeting, 6:35 p.m. Tuesday in City Hall, Sixth and Massachusetts streets.

At issue is money. Jane Eldredge, Rubenstein’s Lawrence attorney, said in a letter to Mayor Sue Hack that city officials initially offered $15 per square foot for the land, about $200,000

In a memorandum to commissioners, Assistant City Manager Dave Corliss said no such offer was made. He said the project budget included a “high-end” possibility of paying $15 per square foot, but since the land in question already contains city utility easements, an offer of $4 per square foot was made, for a total of about $52,000.

At an impasse, city officials now recommend the project proceed without Rubenstein land. The altered design would shorten a westbound deceleration lane along 31st Street that would benefit Rubenstein; it also would remove the property’s access to a planned traffic signal in front of the post office at 1901 W. 31st.

“Given the cost of this project, it may be appropriate for the property owner to pay for these improvements when they desire these improvements since it primarily benefits only their property,” Corliss said.

Archived stories:¢ Home Depot prepares to build (07-26-2002)¢ KDOT: Intersection fails whether or not Home Depot builds (02-26-2002)¢ Home Depot revisits old issues (02-24-2002)¢ South-siders to Home Depot: Stay away (02-23-2002)Archived video:¢ 6News video report: City commissioners sign off on Home Depots traffic improvement plans (03-06-2002)

Eldredge has asked the commission to direct city staffers to move ahead as originally planned.

The company, she said, “has tried in good faith to cooperate with the city staff … but has been frustrated in its efforts to do so.”

Commissioners in March approved the intersection improvements. The estimated cost was then about $3.27 million. Home Depot will pay $1.63 million, the city will pay $1.34 million, and the state will kick in $300,000.