Cuyahoga Falls An Akron developer is calling this citys position toward a proposal he made to even out its subsidies to his project and one proposed by a Cleveland developer very unfair to us.
Steve Albrecht, president of Acme Fresh Market grocery stores, sent a letter dated Jan. 4 to Cuyahoga Falls Mayor Don Robart, proposing a parity agreement for the re-development of his State Road Acme Fresh Market and adjacent properties. Albrecht Inc. is in the midst of building a new $8.5 million, 52,500-square-foot Acme Fresh Market grocery store at 2226 State Road, on the site of the original Acme #10, which has remained open during construction. Through an agreement with the city, Albrecht Inc., parent company of Acme, received a 10-year, 50-percent real estate tax abatement in March 2012 for the project.
Cleveland developer Bob Stark, president and CEO of Stark Enterprises, is planning to build Portage Crossing, a new 256,000 square foot shopping center on 25 acres at Portage Trail and State Road on the former site of State Road Shopping Center. The property was purchased by the city in 2008 and the buildings on the site were demolished the following year. The initial investment in buying the land and other expenses was $11 million. Truby said the citys net investment in the Portage Crossing project is $6.42 million and the developers net investment is $42.1 million.
For the Acme project, the citys net investment is $1.27 million and developers net investment is $9.86 million, according to Truby.
In the Jan. 4 letter, Albrecht proposed the city borrow $4.8 million, purchase Acmes State Road building and land for $3.8 million, and then have the city invest $1 million to make public improvements. Albrecht Inc. would then re-purchase the land and building back from the city for $3.8 million. That purchase amount would be placed in escrow where Albrecht Inc. would use it to pay for private improvements in the construction project. In his proposal, Albrecht appears to be asking for the city to take actions on the Acme project that parallel the actions it took on the Portage Crossing project.
He said his employees jobs are greatly enhanced by your promise of fair and equal treatment of these two projects, referring to a discussion the two had last year where Robart, according to Albrecht, promised to keep the playing field level and not [play] favorites.
Albrecht in the Jan. 4 letter accused Robart of providing a primary competitor significant cost advantages that will jeopardize [Acme #10] jobs.
Giant Eagle is going to open a grocery store in Portage Crossing, according to city officials.
Robart referred comment to Susan Truby, the citys community development director.
The City of Cuyahoga Falls support for the Acme #10 project has certainly exceeded any other communitys support, said Truby. Both the City of Stow and the City of Green have (or will have) new (or redeveloped) Acme Stores within their jurisdictions neither community offered any financial incentives. Between Acme #12 [on Bailey Road in the Falls] and Acme #10, the City of Cuyahoga has made a total investment of $1,702,902.
The redevelopment of State Road Acme Fresh Market has been a very expensive project, Albrecht wrote on Jan. 4. He said he expects an official ribbon cutting in May.
The new Acme #10 store will create 14 new full-time jobs and Portage Crossing is estimated to create 468 new full-time jobs, Robart told Albrecht in a Jan. 18 letter. Therefore, when comparing the citys commitment to your project our cost for each of Acmes new jobs is approximately $90,954. Conversely, based on our commitment to Portage Crossing which includes land proceed reinvestment, CDBG funds, entertainment tax and electric rebates and matching funds to our public improvements, our costs for each job created equals $17,430.
If the citys original investment of $11 million were added in, Robart wrote, the cost per job is $40,934 still well below our investment in Acme #10.
Albrecht emailed Robart on Jan. 22, informing him he felt the citys position was very unfair. Albrecht said jobs to be created was not part of his and Robarts discussion because Albrecht Inc. is the developer not the tenant just like Portage Crossing is the developer and not the tenant.
Truby said in an email to the Falls News-Press Feb. 25 the city has not discussed the matter further with Albrecht, and does not plan to.