Greensboro officials continue to push economic development along the city’s downtown greenway in an effort to justify the corridor’s $26 million cost.

The City Council at its Jan. 17 meeting approved a forgivable, no-interest $100,000 loan to help natural foods retailer Deep Roots Market move from its current location to a downtown site next to the greenway’s proposed route along Eugene Street, half a block from the New Bridge Bank ballpark.

The loan will go toward infrastructure costs such as moving a sewer line and demolishing an existing building on the site.

According to city documents, the project’s developer, North Eugene Partners LLC, is investing $1.9 million toward construction of the 10,500 square-foot building.

The city also says the incremental increase in property taxes over the 20-year period projected to be over $100,000 — will cover the city’s investment in the project.

The council voted 8-1 to approve the loan, with council member Trudy Wade casting the lone “no” vote. She objected to government “picking winners and losers” in the decision to aid individual merchants.

Before the vote on the Deep Roots loan, the council approved a motion expand the city’s Commercial Business District, which made Deep Roots eligible for city assistance.

“Whereas the higher costs of developing new infill commercial space within CBD requires public participation to finance and induce private lenders and equity investors commit private funds,” read the city staff report.
However, the report is careful to note that the CBD guidelines “do not establish an entitlement program.”

As part of the terms of the loan, Deep Roots is required to create at least five additional full-time jobs above its current level of 13 full-time employees. The average wage must be at least $12.95 an hour and include benefits including medical insurance

According to the resolution, “[a]ny real property improvement must be as a cooperative grocery store over the term of the loan, and violation of the terms will constitute the loan being in default at which time the forgivable loan will be immediately due and payable in full if the default is not handled within 30 days.”

The resolution also states the city “will be provided with annual financial statements and employment details” each year that the loan is outstanding.

Greensboro is not unlike other cities in the desire to develop its downtown area. The city’s South Elm Street corridor in the heart of downtown, with its many bars, restaurants, and art galleries, has become a destination point for residents.

But development a few blocks west has been problematic. City leaders hoped the New Bridge Bank ballpark — home of the minor league Greensboro Grasshoppers — would spark development along Eugene Street between the ballpark and the historic Fisher Park neighborhood.

Indeed, soon after the ballpark opened, developers purchased the site of the former North State Chevrolet car dealership and announced plans for a mixed-use development.
Demolition of the car dealership began almost immediately, but then the lot sat vacant for several years.

Now Greensboro developer John Lomax is constructing a 200-unit apartment building on the site, called The Greenway at Fisher Park Apartments. News reports in local media tout the apartment complex’s potential to spur further development along the downtown greenway.

Deep Roots Market is certainly part of that plan. The health food cooperative has been a Greensboro institution since its formation in 1976. The co-op has relocated twice since, and maintains it has long outgrown its current location several miles from downtown.

Several years ago it appeared that Deep Roots finally would get new digs. Another developer outfitted a space in a new strip mall specifically designed for a grocery store. But the co-op ran into rumored financial problems and the move was aborted.

Deep Roots, with its emphasis on health food, seems a natural fit for the location next to the greenway as city leaders across the nation tout the health benefits of greenways. Chatter in the local blogs and mainstream media indicate the desire for a downtown grocery store, an indication that Deep Roots could serve a pent-up demand.

Sam A. Hieb is a contributor to Carolina Journal.