Agenda - Economic Development Authority - 06/14/2018

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Planning Commissioner Anderson stated that Aldi would have an advantage as they would have better signage. He stated that he does not like the right -in option as that would give a preference to Aldi. He stated that he would prefer to eliminate that right -in and rotate the entire store 180 degrees. He stated that logistically he could see how Coborn's would have an issue and he would like to make it more of an even playing field. EDA Member Steffen stated that he also supports competition but never understood the idea of putting two similar services right next to each other, whether it be gas stations, liquor stores, or grocers. He stated that Coborn's estimated their revenue to decrease by 20 percent if this were to be approved. He noted that the Cobom's lease is up in two years and noted that if a decrease of 20 percent is enough for Cobom's to give up, they could move in two years. He stated that is not a risk he would be willing to take. He estimated that 95 percent of residents would say Coborn's is their favorite business within The COR. Planning Commissioner Van Scoy asked if other locations would be available for Aldi. Asst. City Administrator/Economic Development Manager Brama stated that staff reviewed several sites with Aldi and this was the preferred site. He stated that they did talk about alternate sites, but this is the preference that Aldi wanted to go forward with. Mr. Pankratz identified alternative sites and challenges that those sites would have for development. Councilmember Riley asked if that alternate site would be a good fit if rental townhomes were constructed in that area. Mr. Pankratz stated that there would be a shared infrastructure expense but noted that there would still be challenges. He stated that from a signage/visibility standpoint, each retailer will want building and pylon signage. Asst. City Administrator/Economic Development Manager Brama stated that staff did suggest multiple other sites with Aldi for those exact reasons, but Aldi kept coming back stating that this is the number one desired site. He stated that the zoning fits and therefore Aldi wants the City to consider this site. EDA Member Burandt stated that the issue of the fill and pond is a non -issue because it will need to be done eventually to support development. He agreed that it would not make sense to have two grocers with a shared driveway and could not think of another example in which two grocers have the same access. He stated that he would not want to risk Coborn's closing as a result of this. Councilmember Shryock stated that she would want to ensure that there is a level playing field. City Council Work Session / May 23, 2018 Page 5 of 14