advertisement

Elk Grove mayor says Jewel, Kroger trying to keep away competitors

Elk Grove Village Mayor Craig Johnson says the village is looking at any and all remedies "to being held hostage" by two grocery store vacancies in town - the former Joe Caputo & Sons and Food 4 Less stores.

Johnson blamed grocery store owners, who have leases on the properties, for purposely trying to keep competition out.

"It does a disservice to the community," Johnson said. "We would hope they'd be better neighbors to the community."

Food 4 Less owner Kroger denied the charge, while Jewel, which controls the Caputo site, said it was marketing the property but didn't address the competition issue.

In the case of the former Caputo store and one-time Dominick's at 980 Elk Grove Town Center, Jewel-Osco owner Albertsons now owns the lease of the 80,000-square-foot space. A Jewel store is located across Biesterfield Road.

Caputo shut the doors of its Elk Grove store in February. Caputo had a sublease from Safeway, the former Dominick's owner. Safeway merged with Albertsons in 2014, putting the site in competition with its Jewel store.

Jewel-Osco spokeswoman Mary Frances Trucco said in an email there's been an ongoing marketing effort, adding that no parties are currently interested.

But Johnson said in March about a half-dozen grocers were interested in the site, and some of them personally contacted him.

Officials say there's three years left on that lease at the Elk Grove Town Center, with options for multiple five-year extensions.

On the west side of town, the former Food 4 Less store at Meacham and Nerge roads has remained vacant since closing its doors in November 2014 due to underperforming sales.

Food 4 Less owner Kroger Co. still has the lease for the 56,600-square-foot store, which Johnson said costs about $250,000 in yearly rent.

"Kroger does not want anyone in that space. They're more than happy to pay a quarter-million dollars a year to leave it vacant," Johnson said. "We've had other uses come to us which we don't have in Elk Grove that would be great to go to that location, but they won't sublet it out."

Kendra Doyel, a Food for Less/Kroger spokeswoman, said the grocery chain has been working with the landlord to bring in other retailers ever since Food 4 Less closed. That list of prospective tenants includes grocers and other retailers, she said.

"We don't like those empty boxes and we understand the concern that creates," Doyel said. "By no means are we actively keeping anyone out from coming to that space."

Johnson said the village's staff and attorney have been researching ways to "get things to change" at the two vacant groceries.

"But remember, we face a tough battle because this is private property and private contracts," Johnson said. "There's only so much we can do."

He said the village may have more remedies available with the vacant Caputo store because of its location within a tax increment financing district, the special fund the village set up to help pay for improvements in the area.

The issue came up this week in Buffalo Grove too, where officials are unhappy about Jewel's failure to lease or sell a former Dominick's store at Lake-Cook and Arlington Heights roads. Buffalo Grove officials are threatening to cite the property for code violations.

Elk Grove Food 4 Less grocer plans final checkout next month

What's next for Caputo grocery store in Elk Grove?

More auctions planned for Caputo grocery assets

Buffalo Grove pressures Jewel over vacant grocery store

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.