Staff comes up with another targeted Redevelopment Agreement Tuesday for a downtown grocer. By creating a separate entity, The Lemon Tree, Inc., both the village and Michael’s Fresh Market get what they want. MFM gets a rebate based on their overall sales tax generation, the village gets an RDA specifically tailored not to a grocer, but at the downtown grocer only (maybe in case other grocers want to cry foul).
Sales tax at a grocer is a variable thing; basic foodstuffs have a very low rate, packaged goods and other items have higher rates. The terms of the sales tax rebate agreement include the following:
Sales taxes from Michael’s Fresh market shall be rebated to the Lemon Tree in the following manner:
1) 37.5% of total sales taxes collected up to $15 million in annual sales
2) 50% of total sales taxes collected in excess of $15 million in annual sales
- Lemon Tree, Inc. agrees to operate a specialty grocery store at the Acadia location which offers, at a minimum: prepared foods, packaged foods, fresh meat, fresh produce, fresh bread, a delicatessen, and an outdoor dining area.
- Both Michael’s and the Lemon Tree must remain open at their current location to qualify the Lemon Tree to receive rebate payments
- The duration of the agreement shall be ten years with the option to extend with Village Council approval for two additional consecutive five-year terms.
There is an initial 50% rebate period that will run through December 31st, 2010, that will help with some of the start up costs of getting established and known.
As it stands, there will be parking changes to accommodate loading cars with groceries for those who drive there, although that kind of runs contrary to the idea of a walkable downtown grocer.
The Lemon Tree will take up about 6,000 square feet at the east corner of Mochel and Burlington in AOTG building #3. It will have, in addition to a full grocery, prepared foods and an outdoor cafe space for people who want to eat there purchase right there.
The Lemon Tree will also be one of two new liquor license businesses, class P-O-2 , that allows for off-premise sales of all liquor and on-premise consumption of beer and wine at the same location, so you’ll be able to carry out your six pack, or have a bottle of wine to go with the prepared foods eaten there (the mega-Binny’s coming this fall up at the closed Circuit City location is the other P-O-2 license applicant).
Other Michael’s roast chickens, cook up a variety of ethnic dishes, even make fresh sushi, so their cafe could be a very interesting eclectic addition to downtown dining.
As council has already expressed their desire to move this forward, it should sail through to approval. Anyone know where you can buy those wire roller baskets?
Will be in AOTG #3 . Across from Egg Harbor (Egg Harbor is in #1). Great location and will be a fantastic addition to the CBD.
#3 yep. Thanks. Changed it.
Sounds good. I am a sucker for a hot chicken. I have my basket ready! I bought it from Bed Bath and Beyond btw.
Kudos to Mark Thoman for his coverage of this issue and the other economic development issues he has been covering.
Even more kudos to Village staff!
As for the pick up of groceries, it appears to me that the existing angle parking on the south side of Burlington offers opportunity for grocery pick up immediately adjacent to the proposed grocery location while the existing angle parking on the north side of Burlington offers potential to create another through lane, to help traffic flow.
Obviously that parking will need to be replaced somewhere else however using the south side of Burlington for grocery pickup won’t interfere with pedestrian travel within the development itself. If destination parking is entirely south of Burlington or perhaps in the lot north of US Bank (west of Main) increased traffic on Burlington between Washington and Main wouldn’t interfere much with pedestrian travel within the south half of the CBD.
Dedicated cross walks can safeguard those going to/from the train station.
Of course this is merely my amateur opinion and the traffic experts need to be called upon to hash out the final details.
With a dedicated grocery pick up lane, Lemon Tree could also offer a variant of the “Pea Pod” business model (no delivery — pick up only) with customers ordering and paying via the Internet and using text message or cell phone to say they have arrived to pick up their groceries.
You mentioned that the new store will have an outdoor cafe. I am curious to know what has happened to all the other outdoor seating in downtown Dg. Just as the weather started to improve the outdoor tables from Caribou, Starbucks, Berto’s Deli, Dahli’s and Capri have all been removed.
yeah what has happened to all the outdoor seating? I think the New Capri is also set to offer outdoor dining as well. Sorry to go off subject, When is the Lemon Tree and Michaels set to open for business. I would think the Lemont Road location needs some serious gutting and re-working. Has a permit been approved for work to begin on either location?
Did I ever write about how responsive village staff is? How on top of things Community Development is? In about the time it took me to read my EOD emails…
Build-outs don’t happen overnight, but with the location, it shouldn’t be too hard to follow the progress. When it hits a “permit needed” stage, expect prompt action from the village.
I am glad to hear that the old Dominicks will finally be filled again. From the websight the new grocer looks like a Whole Fooods.
I am impressed with the Mayor………he is finally representing the Southside!
Thanks Mark and EJ for the response to the questions about new business for DG. Good news for sure. Also, it’s about time the South Side gets something better than the current offerings.
Hopefully, Michael’s does better than Dominick’s did. If I went to Dominick’s on a Saturday morning, there was never more than 3 lanes open. Jewel, on the other hand, always has every lane open, and it’s still a hassle to check out.
Go to Ultra and all lanes are open and they are 5 – 7 people deep with carts full of food.
Go to Ultra and the lines are all open with 5-7 people deep with carts full of food.
This is just incredible news. I live downtown and am pursuing a lifestyle of using the car as little as possible. I hope the prices are as reasonable as hinted at on the Michael’s website. Personally, I’m willing to pay a bit more for the convenience of a downtown grocery store, but I know many people are on a budget. It would be great if we all can afford to support this new business.
For a large selection of very nice carts, although a bit pricey, check out The Container Store either on-line or nearby in Oak Brook. They even have a cart with an optional bag to fit inside.
Hi friends- The Lemon Tree is coming! Thank you all for your comments. The project slowed down due to business terms with the lease and binding contract deals with Michaels. I can assure you that all business issues have been sorted out.
Bill White- great idea with the “peapod pick-up only”! I will bring up your clever idea at our meeting this afternoon. I also appreciate your comments concerning the parking… We are working closely with the village to maximize the accessibility of parking spaces on Burlington.
Our web site is near completion (lemontreegrocer.com). We would love to hear everyone’s suggestions and comments on this blog or through our website. The Lemon Tree wants to know what you want from your downtown market!
Thank you all! And the Lemon Tree is coming… Please sit tight.
Tim Canning