Champaign Council OKs Incentives for Grocery

By Mike Monson, The News-Gazette, Champaign-Urbana, Ill.

Dec. 20–CHAMPAIGN — City council members conceded Tuesday that providing up to $715,000 in sales tax rebates for a grocery isn’t typical.

But they decided getting such a store to locate near Campustown, as part of the Burnham 310 redevelopment project, is definitely worth the investment.

Council members voted 7-1 to rebate the local portion of the sales tax that a new 28,000-square-foot County Market would actually generate over a period of five years, or up to $715,000, whichever occurs first.

Niemann Foods Inc. of Quincy, the operator of County Market, estimates that the store would generate $143,000 annually in sales taxes. Niemann Foods would submit to the city a copy of its sales tax reports, and the city could request an audit of sales and sales taxes.

Niemann Foods is excited about the proposed store, which would cost $3.5 million to build and equip, said Dave Taylor, director of development for Niemann Foods.

“It’s a little bit marginal as far as the financial part of it,” Taylor said. “We feel we have the expertise to overcome the parking and getting the trucks in and out and the traffic. We do need your financial help.”

The County Market will be next to a proposed 18-story, 259-unit apartment building being developed by the Pickus Companies of Highland Park. The developments are proposed to be built, starting in February, at the site of the former Burnham City Hospital north of Springfield Avenue between Third and Fourth streets.

The grocery and apartment building would open by August 2008.

Council members said a grocery store would greatly enhance the Burnham 310 project and would serve Campustown and north end residents who have been without a nearby grocery since Jewel at Neil and Green streets closed in 1996.

“Speaking as one of the potential customers of the grocery store … I will support this,” said Michael La Due, who lives at 1005 S. Sixth St. in the campus area.

Gina Jackson said residents who live north of University Avenue “would greatly appreciate County Market.”

Deborah Frank Feinen said the city is trying to “create a different type of link to downtown” with the Burnham 310 project. “It becomes less liveable if there isn’t a grocery store there,” she said.

Ken Pirok opposed the subsidy. He said the project would include other retail development if the city council rejected the sales tax rebate.

“It’s just not necessary to do this,” he said.

City council candidate Bill Glithero, during public participation, asked if the sales tax rebate “is the last pile of money we’re going to throw at this project.”

The city is providing $1.2 million in infrastructure and streetscape improvements for Burnham 310, and recently reduced the purchase price of the Burnham property by $300,000 to $1.3 million, a below-market price. The city also has extended the city’s enterprise zone to include the project, providing Pickus Companies with up to $1 million in state and local sales tax abatements on project construction materials that are purchased within the state.

County Market also will be eligible to receive an estimated in $108,000 in sales tax abatements on construction materials, including $31,000 in city sales taxes.

Also Tuesday, the council voted 7-1 in favor of an annexation agreement for a 118-acre subdivision and nine-hole executive golf course and driving range to be called The Legends. A mix of apartments, duplexes and condominiums will be located around the mostly Par 3 golf course, as well as some neighborhood retail.

The project will be north of Curtis Road and west of Staley Road and is being developed by six Bloomington men, headed by Darren Rogers. Three residents who live near the proposed development expressed concern about it.

“We’d really prefer not to see apartments and high-density development,” said Jim Borrer, 4205 Prairie West Drive.

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