WILMINGTON — The Northside Food Co-op is considering significant changes, including possible relocation, to its plans for a downtown grocery store.
READ MORE: Northside Food Co-op on pause after city’s Chestnut Street grocery store deal
On a noon Zoom call Monday, the co-op’s project manager, Cierra Washington, presented more details on adjusted plans for the co-op’s incoming Northside grocery after it was revealed the project was “on pause” last month.
As first reported by Port City Daily, the co-op halted design, permitting and zoning work on the project in January due to the City of Wilmington’s deal to bring a big-name grocery store to Chestnut Street. The city sold three of its surplus properties to Cape Fear Holdings LLC, run by a prominent member of Cape Fear Development, for $1.7 million under the condition it be transformed into a grocery store and remain so for at least 10 years.
The co-op was formed in 2020 with the mission of bringing a grocery store to downtown’s Northside, thus alleviating a food desert there. The county has committed funding for the grocery store since the early days of the co-op, but rising prices and other budgetary demands prevented the project from gaining traction until last year. The New Hanover Community Endowment offered to fill in the funding gap with a $6.7-million grant. The county is supporting the co-op with $2.5 million and a $1.5 million cashflow cushion to its bottom line for the first five operating years.
Wilmington City Council members assured the public at a Dec. 3 council meeting that adding another grocery downtown would not affect the success of the food co-op. Instead, they said the stores would likely serve different demographics and provide variety.
Washington’s assessment shared Monday suggested otherwise.
“It’s not just healthy competition; it’s not just, we have a new neighbor down the street,” Washington said. “This is something that, if we don’t address it, our store would open, but it would not survive. It would probably close a couple years after opening.”
The move-in of a big-name — the store is rumored to be a Publix — would lead more people to shop there due to familiarity and convenience; according to Washington, the co-op doesn’t have customers to spare.
The project manager said the co-op was in the middle of a market study for the grocery store when they learned of the potential grocery deal on Chestnut Street, so they asked their consultant to determine the impact of a big-name store coming to the area.
What the study showed was that if every resident of the Northside shopped at the food co-op, it would not drum up enough revenue to keep it afloat. Washington said this has been true “since the beginning” of the planning process.
“What we needed as a grocery store was folks who just happened to drive by to also shop at the store, for tourists to shop at the store, for people who worked downtown but didn’t live downtown, to also shop at the store,” Washington said.
Washington said the co-op would not be stopped from opening its grocery store, but to make it more enticing, the co-op has been entertaining two ideas:
- Changing its business model to include a hot food concept, potentially making the store more a destination for people; and
- Choosing a new spot in the Northside where the co-op could garner more foot traffic.
The hot food addition would be a mix between a food bar, a la Whole Foods or Harris Teeter, and a formal sit-down restaurant, so most likely a food counter or takeaway model.
“As we started to think about, ‘Could this be something worth pursuing?’, we thought about quick profit,” Washington said. “How many people would come to a store to get their lunch, to get their breakfast, to get a quick grab-and-go thing to take home for dinner? We also thought that it could create additional jobs in the grocery store and provide opportunities for more folks to be connected to their system in this different way.”
The goal is to partner with local chefs on a menu informed by the community and the co-op’s grocery offerings. Both a singular restaurant or a rotating assortment of pop-ups are options, though a key consideration is the incoming food truck park in the Brooklyn Arts District, with a commissary kitchen, and a pop-up window on Third Street owned by Shuckin’ Shack but welcoming of various new start-ups, such as Circle Pit BBQ.
No matter the concept, Washington said the restaurant would be affordable and accessible for all incomes, though ultimately specific price points will be determined in conjunction with chefs.
There are no cost estimates for this addition to the project, nor set vision on the cost-sharing structure of the restaurant and co-op.
After detailing the hot food concept, Washington explained the co-op is exploring alternative locations for the grocery store.
“To be very clear — we’re not moving outside of the Northside,” she said. “We’re not even set on moving yet.”
The project manager said, while grateful for the city-donated acreage at 10th and Post streets, the co-op is looking for somewhere with higher visibility. Washington told Port City Daily there are no specific alternatives identified.
Some members of the call questioned how the land donation would factor into a move of the grocery store; Washington said they are accounting for the cost of moving, but also the potential higher number of sales generated from a site with more foot traffic.
During last year’s contract negotiations over the city’s deeding of the land to the county, Wilmington City Council members and New Hanover County commissioners went back and forth over what would happen if the land ceased to be used as a grocery store.
The city originally contended the land return to its ownership, with commissioners Dane Scalise and LeAnn Pierce specifically advocating to negotiate the signed contract due to this “reverter clause.” Ultimately, the city decided to remove the clause but stipulate the county pay for the land at market value should it not be utilized as a grocery.
Washington said the endowment and county has remained supportive of their efforts to create a successful store.
The county provided the following statement: “The county remains committed to supporting the Northside Food Co-op as they explore next steps to ensure the sustainability of their operations and mission in the community. At this time, the county is not aware of any new decisions or directions regarding the location.”
Washington said both the hot food and alternative location options will be discussed further at the co-op’s Store Development Committee meeting where its consultants will present its data and findings. On April 28, the co-op will meet with the county and endowment to submit a final recommendation on a path forward.
In the meantime, the co-op is hosting two other community meetings: on April 8 at 6 p.m. on Zoom and on April 12, 12 p.m., at Dreams of Wilmington. RSVP for either session here.
Reach journalist Brenna Flanagan at brenna@localdailymedia.com.
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