After months of speculation and controversy surrounding Wal-Mart's plans to build a Supercenter in Oakley, the mega-retailer withdrew its application last week, citing a sluggish economy as the reason for pulling out as an anchor tenant in the proposed River Oaks Crossing commercial center.

"Oh, definitely we're disappointed. But given the economy, it's understandable," said Barbara Mason, economic and redevelopment director. "And we are pleased that other projects such as Home Depot remain on track. We will head back to the drawing board and begin looking at new options. We've already been getting phone calls."

The move comes at a time when Wal-Mart officials cite a tepid economy and stagnant Wal-Mart stocks as the guiding force behind the company's plans to not build 140 new stores nationwide.

In Oakley's case, Wal-Mart was being required to purchase all 77 acres of the River Oaks Crossing development, despite only needing approximately 20 of the acres, said Mason. The Cline family, owners of the property, had stipulated in the original agreement that all of the property be bought at the same time; that businesses not be allowed to cherry-pick individual sites.

The additional financial burden placed on Wal-Mart was a factor in the company's decision, said Mason.

"It was a major strike against the project, I'm sure," she said. "It just didn't make sense for them financially to take it all on. If it were a hot market right now, they could have easily absorbed the extra - but it's not."

Kevin Loscotoff, Wal-Mart spokesman, said the company regrets the decision, and thanked Oakley officials for their efforts.

"We truly appreciate the city staff's hard work and planning," said Loscotoff in a press release. "The withdrawal of our application is in no way a reflection of their diligent efforts to deliver the River Oaks Crossing shopping center to the citizens of Oakley. Oakley is a growing and dynamic city with an extremely bright future."

City Manager Bryan Montgomery added that while there had been some opposition from residents regarding the Wal-Mart project, corporate officials made it clear that the decision had nothing to do with public opinion.

But for some residents, many of whom have been vocal in their opposition to the chain, Wal-Mart's decision not to build in Oakley is a good thing. "As a citizen, I'm glad that they're not coming," said Oakley resident Stephen Braitman. "I felt like Wal-Mart was too easy a choice. Now they (city) can go forward with creating a unique downtown."

City officials estimated that the arrival of the Supercenter would have generated approximately 450 new jobs and a minimum of $700,000 a year in sales tax revenue to the city of Oakley. Sales tax revenue pays for such public services as police officers, road repairs, and park and recreation programs.

Councilman Kevin Romick called the decision "unfortunate," but he remains optimistic that the River Oaks project will continue. "I think a lot of retail people are going through what they (Wal-Mart) are," said Romick. "But we will continue with the project (River Oaks), and when the market rebounds, we'll be ready."

Mason agrees. "We're pretty good in Oakley about making lemonade out of lemons," she said. "When the time is right, we will find the perfect fit for the project."