Even as the city on Tuesday got the OK to start taking control of a shuttered Dominick’s in hopes of finding a tenant, the owner of the South Shore property said he has a letter of intent from a new operator.
At a hearing before the Community Development Commission, Cannon Commercial officials said they have a letter of intent from World Fresh Market for the store, at 2101 E. 71st St.
Those comments came as a city of Chicago planning officer said that the city could have requests for proposals ready to send next month in hopes of finding a developer to acquire the shopping center known as Jeffrey Plaza.
The store has sat vacant since late December, after owner Safeway shut the 72-store chain. Since then, many of the store leases, including every other Dominick’s within city limits, have been taken over by a variety of grocery chains. Last week, the city said it was planning to start the process that would allow the city to take ownership of the site.
At the hearing, Mary Bonome of the city’s Department of Planning and Development said city officials have talked with the owner of the plaza, which she said is currently about 50 percent vacant.
Chicago would offer no less than fair market value for the shopping plaza, she added, and only if a deal can’t be reached with Cannon Commercial would the city consider starting the eminent domain process.
The city said it has the ability to take property under state law in certain situations. Since this property is in a Tax Increment Financing (TIF) district, the city has the authority that it needs, Andrew Mooney, commissioner of the city’s department of planning and development, said last week.
Cannon Commercial said last week that it had requested and did not receive assistance from the city with TIF funding, or to do something about the special security assessment tax for the area where the store is located.
The lease on the roughly 64,000-square foot shuttered Dominick’s space runs through May, George Gamel, Cannon’s controller and portfolio manager, said last week.
Cannon Commercial would like to find a new tenant at a price comparable to what it has been getting from Dominick’s owner, Gamel said at the time, declining to say how much the grocer has been paying or how much Cannon is seeking. Gamel said the firm hopes to make an announcement about a new tenant “hopefully before year end.”
Commission officials voted Tuesday to allow the city to begin taking control of the property. The issue now moves to the full city council for consideration.
In either case, community members are asking for a say in what happens with the space.
Yvette Moyo said a local farmers’ market has started in the area, which indicates the interest area residents have in having access to fresh food. “The community must have a voice,” Moyo said.
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