Tulsa World: N. Tulsa grocery deal took initiative

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N. Tulsa grocery deal took initiative
Nonprofit was a key player in bring- ing a store back to the Albertsons site.

By P.J. LASSEK World Staff Writer
Published: 11/22/2009 2:25 AM
Last Modified: 11/22/2009 3:47 AM

A successful team often benefits from a player who rises to the occasion.

In the effort to land a much-needed north Tulsa grocery store, that player was the Tulsa Economic Development Corp.

TEDC is a nonprofit, certified community development financial institution. It uses public and private funds to make small business loans with the objective of sparking and supporting sustained economic development.

"This project wasn't just a grocery. It was really economic development," said Casey Stowe, chairman of TEDC's board. "It was our largest economic development project using our federal Community Development Block Grant allocations."

TEDC's grant allocations are extended through the CDBG Small Business Loan Fund and then repaid. The grocery project is no different.

By mid-January, Gateway Market will open its doors at 1601 N. Peoria Ave. with 70 employees and a grocery geared to the community's needs.

Tulsa businessman Antonio Perez, owner of four Las Americas grocery stores in Tulsa, said he is excited to take on this project. Last week, he began cleaning the store.

"I want to thank everyone at TEDC. I don't think this would have happened without them," Perez said.

Since the Tulsa World first reported details about Gateway Market last weekend, Perez said he has been assured that the Bank of Oklahoma will relocate inside the store, and he has been contacted by a pharmacist interested in an in-store site.

Perez said he met Mayor Kathy Taylor for the first time on Wednesday, as well as Mayor-elect Dewey Bartlett Jr.

"I feel like there is a lot of support not only from the community, but now the city officials to help me make this a success," he said.

Overcoming perception

TEDC officials also are quick to acknowledge that without the City Council's approval of using $2.5 million in CDBG funds to incentivize the project, it would not have happened.

"There was no flood of grocers, chain or otherwise, seriously interested in the site," Stowe said.

When Albertsons pulled out of Tulsa, its site at Pine Street and Peoria Avenue was the only one that did not reopen as a Reasors or Food Pyramid. What was left was a vacant store with a huge "perception problem."

Despite reassuring police data, concerns about crime were so great that there was little interest in the 6-year-old, fully equipped, vacant building sitting within a 3-mile radius of nearly 30,000 households spending an estimated $95 million on groceries, said TEDC Executive Director Rose Washington Rentie.

Looking for ways to spur economic growth in north Tulsa, Taylor had created the North Tulsa Economic Development Initiative, which included TEDC, the Greenwood Chamber of Commerce, city staff and others.

The grocery became part of a larger endeavor within the initiative that included The Shoppes on Peoria at the old Banfield site across the street, which will house locally owned franchises, created through another TEDC program with the Greenwood chamber.

A new approach

An opportunity arose for the grocery project to get a $300,000 grant when HUD agreed to reallocate a $1.5 million penalty the city had to pay for misuse of CDBG funds between the grocery and The Shoppes on Peoria projects.

When Rentie learned that CDBG funds could be used for a grocery and that the city had another $2.2 million that had to be used or lost, she began preparing a TEDC proposal to the City Council, which awards the federal grant allocations.

Rentie said she didn't submit her proposal without first doing her research to ensure a sound argument that the council couldn't refuse.

Her research found that larger chain grocers were focused on the suburbs, where they had found a new niche.

"They're doing sushi bars, offering upscale meats and fancy coffee shops," Rentie said. "Their target audience has become upper income. It is people who can and will pay higher prices and while they're shopping stop for a latte and some sushi."

A news article from Detroit reported there was not one chain grocer in the inner city there, she said. The grocers that were there were smaller, locally owned, and specifically geared to the area, mostly providing quality goods at reasonable prices.

Rentie said she found that cities were using CDBG funds as the financial incentive to provide the capital to lure smaller grocers to take risks.

Windup, and the pitch

Councilor G.T. Bynum said that when Rentie and Stowe began meeting with councilors to lobby for the CDBG funds, he was hesitant because he favored another program.

"I had concerns about allocating funds for a commercial enterprise," he said. "I thought it ought to be viable on its merits and stand on its own."

However, Bynum said, TEDC provided a lot of valid information, "and I have to give it to Councilor Jack Henderson, who at every opportunity drove the message."

"I was convinced there were people on board with good financial minds," he said.

"TEDC has no financial stake and are just trying to do what is best for north Tulsa."

Bynum said Rentie and Stowe understood that the "cookie-cutter" grocery approach was not going to work for the former Albertsons site.

Rentie argued to councilors that the investment would be long-term, generating a hub of economic activity and model for other redevelopment projects.

The grocery would not only serve as a catalyst to revive Gateway Plaza, a strip mall adjacent to the vacant Albertsons building, but ensure success for The Shoppes on Peoria.

TEDC is providing a $2.2 million loan to Perez along with a $300,000 grant to purchase the site and help with inventory. TEDC, on a monthly basis, will remit a loan payment to the City's Department of Grants Administration.

Grocery sales opportunity

Research data for the 3-mile radius around the former albertsons site at Pine Street and Peoria avenue show:

Residents: 72,300

Households: 29,595

White: 46 percent

Black: 34.6 percent

Hispanic: 16.7 percent

Median age: 34

Average household income: $39,600 with 28 percent greater than $50,000 and 31 percent between $25,000 and near $50,000

Grocery sales opportunity: $95 million

P.J. Lassek 581-8382
pj.lassek@tulsaworld.com By P.J. LASSEK World Staff Writer

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	Report Comment mayor_maynot, Tulsa (11/22/2009 8:13:08 AM) Go ahead. Dip that baby in the water see if it'll float. Well know more in another year or two. The Las Americas at Archer and Lewis is a slow moving store. I went in there one day to do some comparison shopping. I diddnt notice much in price. I tried reading some of the labels. It's not too easy. But one thing that was easy to read was the manager. He appeared at the opposite end of every aisle that I shopped on. I guess I don't LQQK like a Mexican. Aside from that the checkout was Miss Congeniality and proficient in Spanish and Emglish. I really think they profiled me because I was white. Be interesting to see how this unfolds.
	Report Comment fld11, (11/22/2009 8:25:58 AM) And we let them use taxpayer funds as startup money. Grand waste of money. What is going on here?
	Report Comment DBJohn, Tulsa (11/22/2009 8:48:03 AM) Why hasn't that community been able to support a grocery store?
	Report Comment FUTURE WORLD, Tulsa (11/22/2009 9:49:06 AM) I would encourage city leader to not stop here. Continue to invest in N. Tulsa. Thee is much more that can be done to bring this community back.
	Report Comment flyingtheo, Broken Arrow (11/22/2009 10:29:30 AM) "A news article from Detroit reported there was not one chain grocer in the inner city there, she said. The grocers that were there were smaller, locally owned, and specifically geared to the area, mostly providing quality goods at reasonable prices." Having grown up in Detroit many years ago before leaving it permanently when I joined the Marine Corps, this does not surprise me. The rampant shop lifting, vandalism and frivolous civil law suits hoping to win a lottery drove all of the chain grocery stores out. What was left was over priced and limited selection liquor and convenience stores that looked more like pawn shops with security bars than food stores.
	Report Comment Few Clothes, America (11/22/2009 11:29:31 AM) Archer64, and you will be shopping there all the time?
	Report Comment DomoArrigato, Outside of Tulsa (11/22/2009 12:06:39 PM) Did we mortgage airport hangar #5 again to start this business up? Las Americas was in Owasso for about 5 months, then just put a sign in the window and were closed. Hopefully Tulsa gets a better deal from them and they stay at least until the loans stop coming in.
	Report Comment Moses, Jenks (11/22/2009 12:16:38 PM) I find it interesting, since 2.5 millions dollars was allocated to open this grocery, that there is not one interested citizen from the community who offered to step up and open this grocery! This is a win, win situation. If the store doesn't succeed the money is not required to be paid back. Very lucky for North Tulsa that Antonio Perez, an immigrant to our city who currently owns grocery stores in East Tulsa, has stepped up to the plate to open this store. Mr. Perez can't lose and the citizens of this community will now have a neighborhood grocery. Still, I'm surprised that not one business person from this area was interested in taking a chance on their community and opening this grocery! Makes me want to ask, “Hey, what’s the deal?”
	Report Comment DontRant, (11/22/2009 12:27:26 PM) For the idiots that are always negative about in anything in North Tulsa, if you don't live there your opinion doesn't really matter. Tax dollars are use for many ventures that are past worthless. Since we pay taxes TOOOO, its past time. Besides, there were business here before Urban Renewal, Race Riots and the land grab programs that torn them down and wanted the land for their own purposes. So thank you Las Americas. There will always be naysayers. And Tulsa is still so racist its unbelievable. Besides being 25 yrs behind time you can get over your fear of white's being the minority. It'll happen (already has) and the earth will still be standing. SUCK IT UP and check your superiority complex in at the door.
	Report Comment Thunder196, Tulsa (11/22/2009 2:06:16 PM) Is it any wonder if our children think failure is the norm. I have never in my life seen so many people telling someone they are doomed and are going to fail.
	Report Comment Thunder196, Tulsa (11/22/2009 2:10:45 PM) Read the statistics at the bottom of this article. Those are people. Hard working people. North Tulsa does not have a monopoly on crime.
	Report Comment DBJohn, Tulsa (11/22/2009 2:35:34 PM) DontRant, So why has wouldn't the community support a grocery store? I am sorry all of us who live outside the north Tulsa area absolutely do have something to say. It is our tax dollars also. You say that Tulsa is 25 years behind the time, look how far you are behind the times with you excuses for not supporting businesses in your community. I suggest to you to suck it up and instead of complaining about the community, do something about it besides waiting for the government to do it for you.
	Report Comment tricky ricky, (11/22/2009 2:58:01 PM) having worked in north tulsa for two years. i found the residents to be nice . it a shame that 3% makes it hard on the others. good luck with the grocery store!!
	Report Comment 1970 Road Runner, Ft. Madison (11/22/2009 3:10:24 PM) My mom worked with people that lived in north Tulsa. She said many times they had labels stuck on them that weren't deserved. Why do people stereotype?
	Report Comment Few Clothes, America (11/22/2009 3:19:22 PM) DontRant. Tulsa is still racist, but this door swings both ways. The blacks hate the whites too. Always have, always will. There has been a grocery store on Pine for years. This endeavor might make it, but they need to hire smart, ethical workers. Are you going to apply there yourself? It's put up or shut up time.
	Report Comment FUTURE WORLD, Tulsa (11/22/2009 3:25:34 PM) I'll stop in from time to time depending on the convenience it offers me at the time. It's nice to have options and alternatives.
	Report Comment BetterorWorse, (11/22/2009 3:29:50 PM) Because 1970RoadRunner, its easier and less taxing mentally to be closed minded, uninformed, unintelligent rednecks than to open their mind to the possibility that supporting a grocery store in that area through an initial public investment can and will spur further economic growth and redevelopment, thereby spurring greater sales tax revenues as well as property tax revenues to support or increase the City's overall operating budget that allows for the increased public safety, street maintenance, investment in projects for their area of town next, etc etc. On top of that, it porvides a community with a sense of self that is sorely needed in North Tulsa...I can say that, I live here. With sense of self comes a sense of pride, self sufficiency adn eventually pride in not only themselves but their surroundings for having what they have been given or is supported that they choose to stand up and encourage others to do the same, start businesses, move the the area, reduce crime, maintain their existing businesses and homes. Projects like this are designed to be catalysts for greater things... It sure beats spending $92Million on a ballpark to encourage the same thing now doenst it? (BTW $92 million including interest over the 30 yr life).
	Report Comment BetterorWorse, (11/22/2009 3:34:53 PM) And nice of PJ Lassek to focus this piece on the efforts of TEDC and NTEDI, especially when Mayor Kathy Taylor sent out her self serving drivel of a press release praising her management staff for this effort and them alone. I can say with 100% certainty that her staff nor her majesty had anything at all to do with bringing Mr. Perez to the table and finding a way to make this happen. As quoted in the story, Mr. Perez had never even met Mayor Taylor until this last week. Cant wait for this self promoting wind bag to disappear from the local scene, December 7th cant come soon enough. Congrats to Rose Washingtong Rentie, Casey, Stowe, Councilor Henderson, TEDC and NTEDI for getting this done...whats your next project? Tulsa needs more focus driven and visionary leadership such as this to push further economic growth and redevelopment.
	Report Comment Whoknew?, Tulsa (11/22/2009 6:07:40 PM) Reasor's at 15th and Lewis will lose some sales of the 28% of over $50,000 crowd.
	Report Comment mayor_maynot, Tulsa (11/22/2009 9:06:53 PM) That corner has been an economic boondoggle since the 80's. A cute shopping quadrangle soaked in prostitution, murders and illicit drugs that gushed from the doctors offices snuggled in the back. Pyramid Reasors Warehouse Market and Aldis had a chance to roll the dice there and passed it up. To boot the traffic pattern there is dangerous. And inefficient. Limited dangerous access to and from hwy 75 makes it a difficult area to access. Especially for delivery trucks. Its all the numbers together.
	Report Comment Thunder196, Tulsa (11/22/2009 11:01:13 PM) "check your superiority complex in at the door." . Good advice Dontrant try following it.
	Report Comment humbleTtowner, guess?? (11/23/2009 12:52:46 AM) Three mile radius eh. I see liars math applied here since I doubt anyone around cherry street is going to frequent that store.
	Report Comment dslat, Tulsa (11/23/2009 8:56:52 AM) Actually i live near cherry st and i will frequent this store just as i do the reasors on 15th, braums, petty , whole foods, the food pyramid, and the farmers markets while there in season. i love going to different stores for different items, and i am excited to see what this store has to offer. And all these stores are less than a 3 mile radius (actually less than four miles from my home) It would be nice if people didn't make assumptions, mr. humble and criticize peoples math skills(a 3 mile radius is 18+ mile circumference. I can go anywhere in the city with 18 miles. And it is a shame to see and the prejudice in this city.
	Report Comment red02v, (11/23/2009 10:10:15 AM) Thunder196, Tulsa (11/22/2009 11:01:13 PM) "check your superiority complex in at the door." . Good advice Dontrant try following it. ........................Amen!

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