City Uses TIF to Bring Avanza Concept to Market

Nash Finch launched its Avanza concept in Denver, and is making Chicago its next stop, says director of real estate Alan Bloom. "Avanza is a special child for Nash Finch right now," Bloom says. "We'll continue to grow these stores throughout the US in the years to come."

The grocery chain with $4.1 billion in annual sales plans to open two more supermarkets in the Chicago market catering to a Hispanic clientele. Besides carrying more fresh produce than most other grocery chains, Avanza employees are bilingual and are hired from the neighborhood, Bloom says.

The $210,538 in property taxes collected last year are expected to double by 2005, says department of planning and development project manager Steve Patterson. Between 2005 and 2014, the city expects to collect $15.6 million in its share of sales tax revenue, he adds.

With tax increment financing, Nash Finch's internal rate of return on the project is expected to be 12.24%, Patterson reports. Without it, the internal rate of return is cut nearly in half, to 6.75%.

A new foundation and mechanicals are needed as part of the project, Patterson explains. Nash Finch will be renovating 31,020 sf and adding 9,120 sf to the 16-year-old building, as well as making repairs to a 296-space parking lot. Small businesses will operate from kiosks in the remaining 75,000 sf.

The company's renovation costs were $38 per sf in its three Denver stores, Patterson says, but they jump to $78 per sf at the Archer Heights community site.

"This is an old lumber store—very old," Bloom adds. "We're taking over a portion of it and adding on to the building…The mechanicals were not adequate for a grocery store."

Bloom tells GlobeSt.com the company hopes to begin work immediately, with an opening planned by November.

Nash Finch also operates more than 100 other stores under the Buy-n-Save, Econofoods, Family Thrift Center and Sun Mart banners.