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CI"I Y OF SOUTH BEND OFFICE OF THE CLERK
<br /> Mr. Matthews replied,The agreement says we have to have a$27 million spend. Of which,we are
<br /> probably spending $42 million. We are supposed to open one hundred and forty-four (144)
<br /> apartments, a parking garage, and 30,000 square feet of retail commercial, I think? I would have
<br /> to look at it. Of that, 15,000 is fourth(4th) floor office and then 15,000 and 5,000 is first(Pt) floor
<br /> retail. Of that 15,000 square foot section, that is the space in conversations with Martin's that we
<br /> wanted to designate as future grocery.Now,we are trying to find out if Spartan Nash doesn't move
<br /> forward, how should we transition so we can still honor our commitment to provide a full-service
<br /> grocery store in the neighborhood, but there is no definition of full-service grocery store. Going
<br /> online there isn't a definition of a full-service grocery store. So, what does that actually mean?
<br /> Committeemember Dr. Davis interjected, Wow.
<br /> Mr. Matthews continued, We presented something to the Department of Community Investment
<br /> following what the alcohol and tobacco companies require for a full-service grocery store. They
<br /> came back with a document that you guys have that we've had a quick look at but seems a bit too
<br /> restrictive. The agreement we have with the City does say that if we don't deliver the grocery store
<br /> and pharmacy, the City can call back not just their$5 million in TIF but the extra$2.5 million. So,
<br /> from the City being protected standpoint, there is a huge stick if we don't deliver of$7.5 million.
<br /> So, we will open a grocery store even if we have to open one (1) ourselves. We don't want to do
<br /> that, but we will honor that commitment. We are looking to have a conversation about what the
<br /> expectations are for that. Further to complicate it, from 2016 when we started having the
<br /> conversation until now, we have a four (4) month old child and we don't go to the grocery store
<br /> anymore. We use Shipt and groceries get delivered. As the Amazon effect hits grocery stores, that
<br /> seems to be happening more and more often. So, in the neighborhood, it seems like a smaller
<br /> grocery store location makes sense. But, we may not have to have the full Meyer-Martin's. That
<br /> was always the intent was to have a smaller scale store as opposed to the SR-23 and Ironwood
<br /> Martin's. Now the question is, if Martin's isn't doing it and we end up finding another party, or
<br /> end up providing it ourselves, what is the expectation?
<br /> Committeemember Dr. Davis stated, I have a question. When is the deadline for Spartan Nash to
<br /> get back to you?
<br /> Mr. Matthews replied, There is no deadline. It is an open conversation. There is a letter of intent,
<br /> stating they are interested, but not saying they are moving forward by a date.
<br /> Committeemember Dr. Davis followed up, What role does the City play? Is it all up to you as an
<br /> organization?
<br /> Mr. Matthews replied, Our responsibility is to provide a grocery store and pharmacy with this
<br /> development. The City's responsibility is to pay $5 million of TIF, which they are currently
<br /> stalling. That is a frustration as a developer because it is not in their contract.
<br /> Committeemember Dr. Davis then asked, Is Spartan Nash the only option? I know everything was
<br /> strictly with Martin's and that stuff. Has there been any outreach to places like Kroger?
<br /> Mr. Matthews replied,Yes, so, we have relationships with other grocery providers in the region to
<br /> see if they are interested. We have heard no from some, and we've heard questions from others,
<br /> but we have had no one jumping at the bit. If we did,we probably wouldn't be having this meeting.
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