The city had sought $2.2 million for a three-acre lot on thesoutheast corner of Madison Street and Western Avenue. Rather thanthe appraised value, the city will sell the property to West HavenPhoenix, LLC for $733,316, plus provide $2.93 million in taxincrement financing in the form of a developer's note.

"The reason that there is such a high level of city subsidy forthis project is the land costs are getting higher all the time inthe area," explains Dina Wayne of the department of planning anddevelopment. The site also was not large enough to attract largergrocery chains, she adds, and the food store that will open therehas higher costs than its larger competitors.

An Ultra food store will anchor the center in a 56,000-sflocation, which seven in-line spaces in another 14,000 sf. ADominick's store is a mile-and-a-half away while Jewel has anoutlet two miles away. Both of the larger competitors' neareststores are across the Eisenhower Expressway, notes Kimberly Cookeof the department of planning and development.