Copps Food Center may break ground soon at Appleton's Valley Fair mall site

But the $10 million project could fall by the wayside if the city doesn't agree to help developers to the tune of nearly $2 million.

The Common Council on Oct. 7 considers whether to approve a development agreement with Valley Fair Too LLC that returns $1.8 million in new property taxes generated by the project to offset developer costs.

Developer Paul Klister told members of the Community Development Committee on Tuesday that Roundy's Supermarkets wants to open a new 70,000-square-foot store, which would replace an existing store on E. Calumet Street, in 2010.

"That means we would have to break ground within 30 to 45 days," Klister said.

Roundy's Supermarkets' executives said last week they are looking to relocate the Copps store at 1919 E. Calumet St. to the Valley Fair site on Memorial Drive.

The development committee voted 3-1 to recommend council approval of the Roundy's agreement. The agreement is a revision of a 2008 plan covering the entire Valley Fair site, which was formerly mall and collection of retail stores. The initial agreement committed the city to reimburse developers up to $2 million if improvements to the property totaled at least $10 million.

Committee member Ald. Jeff Jirschele cast the no vote, saying he was concerned with the lack of documentation that Roundy's could actually build and successfully operate a store if the city committed to help fund the developer's costs.

"We have nothing but a picture (of the store)," Jirschele said, noting at least five other grocery stores have opened and failed in the same area over the past two decades.

Committee member Ald. Jim Clemons said Klister has a track record of successful developments in Appleton.

"Either we catch this store here or it will go somewhere else," Clemons said.

Klister said Valley Fair Too has an executed lease agreement with Roundy's, but one provision requires the city to participate with financial assistance.

The agreement notes the developers already spent $3.9 million in eligible project costs for the entire Valley Fair site and earned a $1.4 million payment from the city.

The revised agreement, totaling $40 million and $4 million in city expenses, takes into account development of both the Copps store and the remainder of the Valley Fair property.

The Valley Fair property is located in a tax incremental financing district, which generally uses property taxes generated by projects in the district to pay for city costs, such as streets and sewers installation.

The agreement with Valley Fair Too is a developer-funded agreement in which property taxes paid by the developer are reimbursed to help cover developer expenses as the project advances and property values increase.

The city has a similar agreement in place for the RiverHeath commercial and residential project planned for the east side of the Fox River beneath the College Avenue bridge.

The latest Valley Fair agreement commits the city to spending $2 million related to the Copps project, but $200,000 of that would apply to other areas of the TIF district unrelated to the Copps store.

Klister said the Roundy's plan "is an absolute home run hit for that site."

"Marketing retail for that site has been virtually impossible," Klister said. "We need a catalyst, something to get the Valley Fair site going."

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