Letter to the Editor: Council Should Remove Liquor Sales Subsidy with Lemon Tree
Resident unhappy with proposed sales tax rebate agreement between Village, Lemon Tree.
From community member John Schofield:
I sincerely object to the Village of Downers Grove subsidizing the liquor store business contained in this measure.
Otherwise the Village is encouraging the business (Lemon Tree Grocer) to expand its liquor business, and at the expense of tax-collecting competitors in Downers Grove.
The original agreement was to gain a "grocery store" for downtown Downers Grove, and instead we have a trendy restaurant and handy liquor store that incidentally sells some high-priced groceries.
Please revisit the original intent and remove liquor sales from the subsidy.
Thank you!
Robert Griesemer
8:24 am on Monday, May 7, 2012
I couldn't agree more with Mr. Schofield. Encouraging liquor sales in what was touted as a neighborhood grocery store, which truly is quite high end, is the wrong approach. It gives an unfair advantage to other retailers in the downtown area and exceptions should not be made.
Chris Hancock
8:36 am on Monday, May 7, 2012
I agree too. I think that Lemon Tree probably can't afford their rent if they sold "normal groceries" at "normal prices", but, we also don't need to subsidize what they've turned out to be.
Tony Cesare
9:14 am on Monday, May 7, 2012
Question: What is abnormal about an onion? Steak? Ground beef? All are among the selections at Lemon Tree. The perception that Lemon Tree is some kind of out of touch-uber-high-end-snobatorium grocery store is off. Yes, they sell Three Floyd's beer in the frig at 10 bucks a six pack (FYI so does Jewel) but they also sell PBR half quarts.
However, there is no question that the concept has evolved, and the owners would would never deny it. Lemon Tree IS a grocer, but its also more-a restaurant, a bar-it has evolved out of necessity, that's just good business. Moreover, what other retailers are getting cheated here? Who?
Everyone needs to get over the whole 'that's not what they said they would be' argument and focus on what they are. If a 'pure grocer' cannot sustain itself in our downtown, do you toss out the whole concept or do you evolve? What would you rather see in that location? A Goodwill Resale Shop?
Shaun Black
9:32 am on Monday, May 7, 2012
Residents, Liquor sales is less than 1% of our total sales revenue. As far as our pricing goes we are less expensive than Whole Foods and have higher quality products. We are a grocery store with a restaurant and wine bar inside of it. Its a very unique concept that has evolved because we have adapted to what the residents of Downers Grove wanted. I am of course referring to the residents that shop our store and not the ones that use outlets like the Patch to complain about things before getting their facts straight. The community as a whole has been very supportive to us and we are grateful that we chose Downers Grove rather than many of the other towns that were courting us when choosing a location. I would also like to take this time to say a big Thank you to the village staff and our elected officials. Downers Grove is unique and fortunate to have a group of leaders who are forward thinking and pro-business. We hope to see you in the store soon or at one of the many local community events we support this summer.
Kent Frederick
9:36 am on Monday, May 7, 2012
The question that needs to be investigated is why a grocery store can't do well in downtown DG. Obviously, there is no location that has the size of the Jewel at 63rd and Main or the Dominick's on Ogden between Cass and Fairview.
On the other hand, Casey's in Western Springs does quite well as a butcher shop, deli, and grocer selling items you can't get at Jewel, Dominick's, or Ultra. But, it doesn't sell alcohol, and there is no dining area.
Considering the number of residents living in the condos within a few blocks of the tracks, as well as the number of residents who live within 10 minutes of downtown, a grocer/deli/butcher shop ought to do very well.
William Vollrath
9:49 am on Monday, May 7, 2012
It should have been pretty obvious, since week one, to anyone with half a brain that this operation overly estimated the demographics of DG and was plenty challenged in the finer points of running a rather odd combo grill/grocery store/high end restaurant/coffee shop/patio cafe. In this environment of diminished resources, as much as I like picking up a couple things at LT when I'm already in that area, I resent my tax dollars being used to prop up a poorly reasoned and executed business plan.
Miles
10:23 am on Monday, May 7, 2012
The State refunds the village 1% of the Lemon Tree's Sales to the Village. This money is generated by this new and complex business and not genrated by the village tax payers. Forward thinking towns like Naperville and Glenview use these refunds to encourage prospective business owners to consider your township to start their venture. Having a thriving downtown raisies your property value and acctually helps sell homes that have sat vancant in this trying economy.
This town should be getting their game faces on to help a business like Lemon Tree to thrive and encourage more unique concepts to come in it's place...
Love the resale shop comment. just imagine!
I admit Lemon Tree had some kinks to work out from the start, but what new concepts like this dont? These guys have now got things figured out. The Butcher, Produce and Grocery seem to have twice the offerings and prepared foods has like trippled. The food is the best around and service has improved tremendously. I would think a store with such limited buying power would be priced way higher than these guys seem to be. And they have great deals like $5 hamburgers on Mondays- they cant make money on that! But I think it is their way of giving to the community- the 1/2 lb. burgers are great and well worth any wait.
Times have changed and we need to change with it- sorry John! This store needs our support and ideas on how our community can grow with it in the future years to come.
Carol Kania Morency
12:57 pm on Monday, May 7, 2012
I agree with Tony. Take a look at grocery stores that DO get built. Very few are constructed in towns like DG, unless they are specialty or have a large ethnic-food selection (and Michael's did not last). Most of the new grocery stores are built in exurban areas where there is cheap land. Stores need to be really big now to turn any kind of profit, or they need to be specialty. Clearly, Standard Market in Westmont could see that Lemon Tree's owners figured something out.
Then again, a Goodwill store would be fine with me, too. :)
Cliff Grammich
3:57 pm on Monday, May 7, 2012
Grocery stores have to locate where they can draw customers, no? I'm not about to drive to Kendall County to buy groceries, though I understand stores will build there for the new populations there.
I find it interesting that while DG retail sales from food stores decreased in 2011, those in other communities, including Wheaton and Naperville, increased. (See http://www.melaniphy.com/sites/default/files/2012-Retail-Sales-Report.pdf.) Do those municipalities use sales-tax rebates to attract stores? I don't know, but would like to.
Regarding Standard Market, did it receive a sales-tax rebate like Lemon Tree received? Again, I don't know, but would like to.
Jerome Pavlick
1:31 pm on Monday, May 7, 2012
I believe every business needs to stand on its own merit and that taxes are a cost of doing business. If you give a tax break to one business you should give a tax break to all in order to maintain and equal and fair playing field. I believe our village council has lost touch with reality especially when I found out about the recent pay raises and bonuses given to the Village Manager for doing what he was hired to do to begin with. Get real people this is the type of stuff that got us into financial problems to begin with. Everyone needs to pay their fair share of expenses this includes taxes. It is what business is all about.
Kent Frederick
12:59 pm on Tuesday, May 8, 2012
If you pay attention to what goes on in municipalities, a lot of people in high level positions (village manager, director of public works, etc.) move around, because villages learn who is talented and lure them away with better pay and greater responsiblilites.
Remember that George Graves was hired as police chief of Downers Grove after serving in that same position in Western Springs for a number of years. DG offered more money and new challenges that WS couldn't.
I moved to DG in 1998. There have been at least 4 village managers in that time span, Dave Feldman, Cara Pavlecik, Ricardo Ginex are the names I can remember. I believe Ginex's predecessor was hired away by another municipality.
That's a fair amount of turnover for 14 years. Considering that Dave Feldman has established a reputation as a good village manager, the last thing we need to start another candidate search, because Feldman resigns to accept an offer with another city or village that offers better pay and greater challenges.
Yes, we're in a bad economy, and many people aren't getting raises. By the same token, I know a number of people who have changed jobs, despite the economy, because of lack of raises or promotions. People don't stay out of loyalty as they did 30 or 40 years ago. You don't need an MBA from Harvard, NU or U of C to understand that it's cheaper to retain good people than to hire new people, who may or may not pan out.
Victoria Tate
1:31 pm on Monday, May 7, 2012
I love the Lemon Tree. Shaun has been completely open to being a part of the community that is Downers Grove. They have helped my cycling team with fundraising, and are a sponsor of the team. I find them to be innovative and willing to adapt to the desires of the community. I think those that are crying foul are the same people who made the bike race go away, complain about the Friday night car show and want our town to go back to sleep and have no life. Stop your belly aching and go have one of their hamburgers. Wash it down with an ice cold beer and enjoy yourself on their deck. After lunch, go buy some groceries and call it a day!
Robert Bykowski
2:38 pm on Monday, May 7, 2012
Oh, I sorely miss the bike race.
Sue O'Connell
2:23 pm on Monday, May 7, 2012
I have worked with the owners of the Lemon Tree since they first opened and admire that they have been constantly on the front end of adapting their business plan. What they started with has evolved because they have been responsive to the community feedback and also have learned from trial and error what works and doesn't work. So, yes, what is there now is not what they originally envisioned or planned. But that's a good thing. Would you rather have vacant space there? I admire that your village in Downers Grove is supportive of local business. That is also a good thing! Otherwise, you'd look like MY town two to the east of you with nothing but salons and a Starbucks. . . and a whole lot of available space. I wish we could draw a business like Lemon Tree to our town!
Don Jankowski
3:23 pm on Monday, May 7, 2012
In surveys of Downers Grove residents prior to Lemon Tree, a downtown grocery store was consistently identified as a high priority. Lemon Tree has done a great job at filling that need, and has adapted its business to respond to its customers. The fact is that other grocers did not locate in the downtown because the "Jewel" model would simply not be financially viable. Lemon Tree took a chance, and has adapted its business to become a successful business and fill a niche. Kudos to them (I love their prepared foods -- the crabcakes are outstanding) .
Jerome -- the Village Manager is one of the highest performing in all of Chicagoland and could land a similar job elsewhere in a heartbeat. I am glad that the Village Council recognized this and adjusted him to a competitive market wage. It is smart to reward high performing people, or you end up losing them.
CM
3:36 pm on Monday, May 7, 2012
I think it's great to see two successful hardworking men bring a unique concept to our town and it's wonderful to see that they are constantly evolving to meet the demands to make LTG feel like home. It brings in people not only from DG but from surrounding towns who appreciate the multiple services that they offer. There are young & established families who can identify with such a unique store. It has brought excitement to this town, it has been a gathering place for men and women of all ages, families, too! They support the community whether it be to host a spot for GNO or to support a local charity. I have been at those events and have seen Tim/Shaun give back and sometimes out of their own pockets. They have gone as far as being the main venue for a local that runs for charity 2 yrs in a row. They care & want to see charitable work be successful,they get involved. There is NO way that any other establishment would care like they have proven to do. They are a part of this community. Whether it be grocery shopping, hosting parties, or enjoying a cocktail there with several friends, it's the best out there. Zest offers a warm and relaxing atmosphere whether you are inside or on the best outdoor patio. I consider LTG to be the heart of downtown DG and I am certain that they will continue to evolve as successful businessmen would. With the success of one store can only bring more businesses to a growing community. Kudos to you, Lemon Tree, you are in a class of your own. :)
Mark Thoman
6:14 pm on Monday, May 7, 2012
Lemon Tree is pretty neat. I don't see where John Schofield has a problem with the business, the letter says they shouldn't get sales taxes rebated back on liquor sales. Shaun Black says the liquor sales are 1% of their total, so it's not a big deal-breaker.
William Vollrath
12:15 pm on Wednesday, May 9, 2012
Just would like to clarify that the projected $14,000 tax rebate is, in reality, an expense to taxpayers who now won't have use of that money in the Village budget because it will be retained by LT. I don't believe the philosophy behind this specific quasi-grant is quite as clearly justified as some believe. The merits of LT and of the tax break are not the same issue. At some point most businesses must make money without dependency on government handouts. If the rebate allows LT more time to figure out a profitable model fine, if it just keeps a bad model alive, not so fine...