Deep Roots Market may get city loan : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

GREENSBORO — The city of Greensboro may kick in $100,000 to help bring Deep Roots Market to downtown.

On Tuesday night, the City Council will consider providing a forgivable loan to pay for part of North Eugene Partners LLC’s planned $1.95 million market for the grocer.

In exchange, Deep Roots must commit to hiring five new full-time employees and the site must continue to be a grocery store for the 20-year term of the loan.

Supporters are hopeful that the loan will help make a much-anticipated downtown grocery store a reality.

“Deep Roots will be a catalyst for bringing more business for downtown,” said Chris Kwong, president of the co-op’s board of directors.

The City Council will consider the issue at 5:30 p.m. Tuesday at the Melvin Municipal Office Building, 300 W. Washington St.

Deep Roots sells local, natural and organic products from a cramped Spring Garden Street location.

One year ago , the co-op announced its intentions to build a new location on Eugene Street, north of the Battleground Avenue intersection on the outskirts of the center city.

Officials had hoped to relocate to the new 6,300-square- foot store — which will include a deli and cafe — by October 2011.

But raising some of the money from co-op owners and planning the project has taken longer than anticipated. The developers also hit a snag when designing the layout of the property: They needed more space for parking and truck deliveries than originally expected.

The developers will be able to demolish the Citi Financial office next door to provide more space for the market.

But that change threw off the financial feasibility, putting the private bank loan portion of the project in jeopardy, said John Shoffner, Greensboro’s economic development manager.

The city staff is recommending that the City Council provide the developer a no-interest loan to help make the project possible. The city will forgive the loan after 20 years if all the conditions are met.

If the loan is approved, Deep Roots will be required to hire the new employees at an average wage of $12.95 an hour with paid medical benefits by March 2013.

The new store would have to be built by the end of this year, Shoffner said.

The loan proceeds will be used to pay for infrastructure on the project, according to city documents.

“We think it will be a real good fit for downtown,” Shoffner said.

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

TravKM

January 13, 2012 - 4:29 am EST

Wow, Greensboro giving incentives to a local, reputable business. What a concept! Usually, they and other local and the state governments go out of their way to throw huge amounts of money to large corporations, but barely lift a finger to help out small, local businesses.

I guess the city staff and possibly the city council are suffering from temporary sanity.

Traveler

January 13, 2012 - 2:56 pm EST

I have some problems with this. Before I begin to explain, I should say that I have not been to Deep Roots in 3-4 years. They might have changed.

1. Deep Roots is in the business of selling "natural, healty, food". Within 5 minutes (by car) are Fresh Market and Earth Fare. Soon another similar store will open in Friendly Shopping Center. Why are our tax dollars going to support a business that has competition from people who are investing their own money?

2. Within walking distance of the proposed location will be around 500 housing units. This does not seem like enough to support a neighborhood store the size of Deep Roots.

3. Will people walk 1/2 mile or more from Fisher Park, the Lofts, City View, East Bessemer, the Aycock area, etc to shop there? I don't think so.

4. Deep Roots only sells "food". Most of us also get things like diapers, light bulbs, cleaning supplies, etc at the grocery story. Are people going to drive to Deep Roots, get their "healty food", then drive to Harris Teeter to get their diapers, light bulbs, etc? I don't think so.

5. Deep Roots has a limited selection and their prices are high. Fresh Market and Earth Fare have a better selection and their prices are lower. Again, why is government giving our money to someone who doesn't have a competitive product?

6. The current location of Deep Roots is the only food store in that area, I believe. Why is our government using tax dollars to ask a business to abandon one area of town to serve a different area?

7. The current city council has at least 2 members who have stated a belief that government should "plan growth". What makes them so smart to dictate?

8. Is this the best use of $100,000 of our tax dollars. Are there medical needs, educational needs, intrastructure needs, etc that are more deserving?

9. How can your provide a $100,000 forgivable loan to one locally owned business to create 5 jobs with those wages and benefits, and not every other locally owned business? I am sure there are many local business owners who will take a $100,000 forgivable loan to create 5 jobs.

10. Where will this end? With the new city council "planning development", how many more projects like this will be funded with our tax dollars? How much will our taxes have to go up to pay for those projects?

itsjustron

January 13, 2012 - 3:02 pm EST

Traveler.. You make some very good points, I had initially was of the opinion this may be a worth while investment (see my post below) however After your talking points, I also have to wonder, if the city might also open themselves up to a lawsuit from other local business owners who may approach the city for a forgivable loan in the future, should they be denied. a;; things equal of course.

Panacea

January 13, 2012 - 4:07 pm EST

1. The point of the tax dollars is not the nature of the business, but its location. There are next to no grocery stores in that part of town, and part of the problem with obesity in the poor is lack of access to healthy foods.
2. See above. The city wants grocery stores in that area to allow access to healthy foods.
3. That is a valid point, and may be partly why Save a Lot chose not to open a store recently.
4. I shop at multiple grocery stores all the time: Costco, Harris Teeter, and Food Lion. What I buy where depends on the prices.
5. Another valid point. They may be too pricey for the area.
6. Ditto.
7. They're not dictating anything. They're advocating. There's a difference.
8. See comment 1 above. Improving access to healthy foods is in the public interest because of the direct link to poor health.
9. The government has a long history of doing just this. Without government investment, we would not have had the Transcontinental Railroad.
10. Planning development is a key role of city government See Comment 9.

Crypdogg

January 13, 2012 - 4:55 pm EST

I believe the Transcontinental Railroad created a bit more than 5 jobs!! Nothing like comparing apples to steaks huh??

RandolphBloke

January 13, 2012 - 5:02 pm EST

The point still stands. Government investment has been key to much that has made this country great no matter what some want to believe.

InventorNC

January 13, 2012 - 5:21 pm EST

Name one successful business that gov has spearheaded.

One.

Just one.

January 13, 2012 - 7:19 pm EST

Who said anything about spearheading? You honestly can't name those that the government has helped at various times in our history?

You can't tell me the small business administration loans have not been helpful in getting companies in this country off to a good start?

You think investments by the government such as these are always failures?

I'd love to see you talk to some of the companies that, right here in greensboro, have taken advantage of government and public/private partnerships like the Nussbaum Center and others.

You're trying to push an agenda here. It isn't all doom and gloom as your ilk want people to believe and you know it.

January 13, 2012 - 10:00 pm EST

I can name an industry the government successfully spearheaded: the Internet.

The Internet is an outgrowth of a government effort to keep itself communicating if WWIII broke out. It spread to higher education, business, and finally the average consumer.

No, Al Gore didn't invent the Internet. But the US Government did. We wouldn't have Google, Amazon, online banking, or even this blog without the government.

1234

January 16, 2012 - 7:35 am EST

There is an idea...ask Al Gore for the $100,000...as he spends that a year on gas and electricity at his McWaster House! Tell him that there will be less global warming if people can walk to the store...he still believes in that stuff he invented!

January 14, 2012 - 2:34 pm EST

Please read my story, on page 3, or a past city loan which went bad. There have been too many instances of the city council loaning money to "can't miss" projects, which did miss.

January 13, 2012 - 5:14 pm EST

You seem to assume that Food Lion, and the other food stores are stupid.

IF there is opportunity I am sure that food stores will stake out a territory with no help from politicians who haven't a clue about business.

Stores go where there is opportunity. They do not need politicians to tell them where to open shops.

January 13, 2012 - 6:25 pm EST

It sounds idealic, the picture of people walking to their nighborhood downtown grocery store and buying healthy food.

The Lofts are about a mile away from the proposed site of Deep Roots. City View is more than a mile away. East Bessemer is more than a mile away. Aycock is more than a mile away. The center of Fisher Park is about 3/8 of a mile away.

In the summer, the concrete downtown holds the heat and it's hot as blazes.

In the winter, the tall buildings funnel the winds, causing wind chills that make walking uncomfortable.

A couple of bags of groceries can easily weigh 25 pounds.

Do you really think people are going to walk a mile in the heat of summer to go to Deep Roots, and carry 25 pounds of groceries back on the return walk?

Do you really think people are going to walk a mile or more in the cold of winter to go to Deep Roots, and carry 25 pounds of groceries back on their return walk?

I don't think so.

I just wish the looney left, "planned growth" city council members had to do that, just for a month. Guarantee you not one of that "planned growth" crowd will make that walk.

January 14, 2012 - 5:25 pm EST

I have another problem with this.

As I understand, the interest free, forgivable loan will be make to Deep Roots, some sort of corporate entity.

What happens if Deep Roots fails after a few months?

The reason I say that is I remember about 10 or 12 years ago Robbie was one of the city council that pushed through a loan to Bill Black and Don Brady to operate their hockey team for a year. The Rosy Scenario (Rosy is a sexy bi***) was that the team would be sold and the city would retain a hockey team, which the coliseum needed as a tenant. Well, the team did not get sold (thanks in large part to investigative journalism by New Record which uncovered several problems). When the deal fell through, Brady and Black claimed the loan was to the team, not them personally. There was a lot of public uproar, but I don't believe any money was repaid.

What is to prevent that from happening again.

I understand this is a done deal, Robbie has the votes lined up. I hope someone, somewhere, has enough influence to make some real person, who has money, responsible if Deep Roots fails. The developer and the board of Deep Roots seem likely candidates to co-sign for the loan.

hugh

January 13, 2012 - 7:00 am EST

One way to look at it is the City is subsidizing five employees at $1000/month for 20 years.

The City has gotten stingy since it subsidized Roy Carroll's condo project $1,000,000 years ago. That's about the price of a downtown penthouse; gee golly I wonder who lives there?

January 13, 2012 - 7:34 am EST

EDIT: $1,000/YEAR, not month.

Alf42

January 13, 2012 - 7:02 am EST

This doesn't sound like a good idea. I'm reminded of Solyndra and we all know how that turned out. Of course we have a liberal city council and now a liberal mayor and this sounds like something they would do. Does anyone have an example of a project like this in another city that has worked? I just think that if a company can't/won't open in downtown there's probably a good reason. It's because the market is not there.

January 13, 2012 - 5:03 pm EST

Yes, because all government investment is evil and always has been. Thanks for clearing that up.

January 14, 2012 - 2:35 pm EST

Nope, not all, just most.

brian444

January 13, 2012 - 7:42 am EST

Crony capitalism is crony capitalism, whether on Wall Street or Main Street.

buzzman

January 13, 2012 - 7:50 am EST

This is one of those situations where a small business, that has apparently done OK (can't see how they could have done great), believes that a large store will multiply their sales by a large amount. I don't think so!
The proposed location isn't that great and I just don't think the downtown area will support such a business. There aren't enough customers living close by and most folks are not going to go grocery shopping immediately after leaving work. The debt service on such a building will be impossible to bear. Bottom line: another foolish venture that the "downtown crowd" has somehow talked someone into attempting. When the place goes bankrupt, that city $$$ will be lost. Taxpayers lose again!
Maybe the REAL plan is to have an empty building to turn into the new downtown performing arts center!

Laura

January 13, 2012 - 8:59 am EST

With all due respect, I don't think you've thought your comment through. There are many new apartments and condos downtown, and many, many more being built very close to the location. The plan includes a sizeable cafe to serve the growing downtown lunch crowd. It's location is central and convenient, and will have much more convenient access. Deep Roots will also serve the increasing desire consumers have for local foods and to buy local. The buzz I keep hearing is that people can't wait for the business to open! Furthermore, grocery stores in general are an important anchor business in any development. Build a grocery store, and other business will follow.

Amanda Lehmert

January 13, 2012 - 12:40 pm EST

Hey Buzzman, a new apartment complex is being built across the street from this location, which will have 196 units.

January 13, 2012 - 1:12 pm EST

Are you saying that 196 apartments will sustain the proposed business?
Let's just see how this all plays out. Don't forget what I've said.

January 13, 2012 - 5:11 pm EST

Are you really thinking that upcoming housing of 196 units is all that is nearby?

Love or hate the idea, there's quite a few people in the area and more moving in all the time not to mention a lot of traffic and others that exercise/travel through the area.

January 13, 2012 - 6:12 pm EST

The Lofts are about a mile away from the proposed Deep Roots site. City View is about 1.3 miles away. East Bessemer is over a mile away. Aycock is over a mile away. The center of Fisher Park is about 3/8 mile away.

In the summer, the concrete holds heat, and downtown is hot as blazes.

In the winter, the winds are funnelled by the tall buildings and the chill factor makes walking uncomfortable.

It sounds idealic, that people downtown would walk to their own neighborhood grocery store and buy healthy foods.

That's not the way it will be. Would you walk a mile in the heat of summer to a grocery store, and carry 25 pounds of groceries with you on your return walk? Would you walk more than a mile in the cold of winter to the grocery store, and carry 25 pounds of groceries back on your walk home? I don't think so.

January 13, 2012 - 7:21 pm EST

Have you ever lived in a downtown area? I haven't here in NC but I have in NYC. You don't go and buy tons of groceries the way people do in the burbs. You go more often and buy less each trip.

The point isn't about everyone walking either. He was being myopic by talking about JUST the one development and not all of those nearby and those customers that would still drive to the store that already give them custom.

January 13, 2012 - 9:17 pm EST

If I understand, you see people walking to Deep Roots several times a week for small purchases of "healty food".

I don't believe many people are going to walk a mile in the heat, in the cold, or in the rain to get a tomato and lettice (bacon isn't healty), some bread and walk a mile back to their home or apartment.

Again, earlier a woman said the purpose of the store was so that the poor would have access to healthy food. My friends in Greensboro area nutrition all tell me that the poor buy in large quantities when their money arrives. They don't walk more than a mile from East Bessember to buy a few healthy things several times a week.

January 13, 2012 - 1:21 pm EST

Regardless, taxpayer money shouldn't be used, especially when only five (5) jobs are the requirement.

January 13, 2012 - 4:52 pm EST

I live in downtown Greensboro. It is interesting that the buzz you hear is that people can't wait for Deep Roots to open. When I hear people talk about it, I don't hear anyone say they will shop there. The comments I hear most ofter are "they are way over priced" and "why would your go to a grocery store that didn't sell beer?"

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