Grocers compete for Albertsons

City Council to take a ‘back seat’ in negotiations.

Before the City Council meeting on June 15, Mayor Bruce Bassett added an agenda item to update the Council on a potential new grocer to take over the closing Albertsons grocery site.

Early in the meeting, Islanders voiced their support for having a Puget Consumers Coop (PCC) take over the space. Metropolitan Market CEO and Islander Terry Halverson also attended the meeting to express his interest in the location.

Bassett said that it was important that there not be a repeat to the situation that occurred with the old Safeway site.

When the Safeway on 6th Avenue S.E. closed down in the 1990s, a commercial plant business sub-let the property until 2008. Then the site was left empty for several years. That land is now the site of the apartment community, Aviara.

“There is a risk that [Albertsons] becomes a useless shell,” Bassett said. “But we know there is community support for another grocer.”

To the pleasure of many Island residents who have spoken out about the issue, there are serious negotiations between the property manager and a natural foods market, said City Manager Noel Treat. While he hopes to make a public announcement in a few weeks, Treat remained unable to disclose the identities of the potential grocer at the meeting due to confidentiality agreements.

Bassett then asked the question everyone in the room was thinking, “Can you tell us anything more?”

Treat added that while no building permits have been issued for the site, it is “most likely that the party would be looking at renovations.” Meanwhile, he remains in regular contact with the parties.

“There is not a direct action for the Council to take at this point,” he said.

Councilmembers Mike Cero and Benson Wong agreed that the Council should let the parties workout the deal rather than step in to offer incentives or other advice.

“There are very skillful property managers who own the building,” Cero said. “Let’s keep a fair distance away and let the experts work it out in the market. We don’t want to muck it up in our tendency to want to move things forward.”

“It’s definitely a private matter for the market,” Wong said. “What we do need is to keep a distance and not be overly active in trying to reach out.”

With certainty that the parties know what’s going on in the community, he cautioned the city against being too overactive on the issue.

On the other hand, Deputy Mayor Dan Grausz said it is the Council’s duty to get involved.

“You will get left with a plant store if you leave it to the market,” he said. “We as a city and City Council have an obligation to keep an eye out for it and make sure it’s done right.”

Despite the concerns of what will become of the site, it’s looking like a viable grocer will take the place of Albertsons.

While residents will have to wait a little longer for the announcement, Treat affirms that the party really wants to be a part of this community if the deal works out. He noted that the Council will be standing ready to help facilitate the decision if needed.