Brownwood and BEDC Approve Incentives for United Supermarkets

The Brownwood City Council and the Brownwood Economic Development Corporation took another step Tuesday toward securing a United Supermarket for the area by unanimously approving an economic development incentives agreement.

According to BEDC executive director Emily Crawford, the incentives agreement includes up to $360,000 reimbursement for infrastructure and site improvements. One half of these funds would be paid upon completion of site work (defined as when forms are set to pour the foundation), and the second half upon issuance of the certificates of occupancy.

Mayor Stephen Haynes explained that the City of Brownwood will offer 24,000 cubic yards of fill material at no cost from adjoining city property, deed over two small tracts of city owned land totaling 0.342 acres, and supply and install a flapper valve on the detention pond on the tract of land which will be the site of the new grocery store. United Supermarkets has been in negotiations to purchase the property previously occupied by Bruner Chevrolet and located at 300 W. Commerce which is owned by the Holley family.

According to the agreement with the BEDC, the corporation will build a store with at least 40,000 square feet, which will be completed on or before June 1, 2016 (certificates of occupancy will also be obtained by this date). The agreement also states that United shall have a minimum capital investment, including store furniture, fixtures and equipment of $10,000,000. Annual gross salaries to employees of the Brownwood store will equal $3,600,000 during the first three years (which can be extended for another 2 years if necessary) or United will pay back the $360,000 incentive to BEDC.

United also agrees to provide 140-150 jobs at the store, of which at least 25% will be full time positions with benefits, according to Crawford. The store is expected to produce $19.5 million in annual sales of which 25% are taxable according to Crawford.

Mayor Haynes stated that the negotiations with United have been very pleasant and that United is known for being a community player.

“Our negotiations with United have been a breath of fresh air. They have been exceptionally easy to work with, they have been responsive to our requests, and they have proved to us through example in the way that they worked with us that they are a community player,” Haynes said. “I know that is one of the things that United prides itself on, being a part of the community and we are very much looking forward to having a community partner to invest and reinvest in this city for a long time. Thank you to United for your efforts this far.”

Haynes explained that United still has to close their land sale transaction with the Holley family, so it is not a “done deal” and wished them the best in that endeavor.

“Certainly we have taken the next step in the process and we wish you the best luck in your negotiations with the Holleys and certainly hope everything comes to fruition quickly,” Haynes said.

Rollins stated, “We really appreciate the efforts that the City of Brownwood has done to bring United to Brownwood.”

Rollins explained that United hopes to begin construction on the store later this year and open sometime in 2015, earlier than the required June 1, 2016 date of the agreement. The process is moving forward well and Rollins outlined that United still has a few steps to complete before construction can begin. These steps include completion of the real estate transaction, including legal work, final survey, title work, and soil testing.

“Everything is looking favorable so far,” said Rollins. “We’re excited about the community of Brownwood; it fits into the United mold. We do real well in West Texas and have excellent stores. Brownwood has the employee base to support this store and we feel it is an excellent opportunity.”

Rollins explained that United is always looking for opportunities for expansion and that Brownwood has been in the market area it has been considering, basically a 200 mile radius around the Lubbock area or the Dallas-Fort Worth metroplex area, with cities of more than 10,000. Brownwood will be the southernmost location in the United Supermarkets, LLC chain.

The new store will be something new and expanded compared to the current Brownwood grocery stores, according to Rollins. He stated that the store will have the best fresh produce, a butcher on hand to make specialty cuts for customers, a bakery with some made-from-scratch items and a prepared foods section. Customers will have the choice to carry out these prepared items or to sit down in their dining area to enjoy them. There will also be a 1000 sq. foot walk-in convenience store with grab and go items such as chips, drinks and more alongside their fuel station which will have four multi-pump dispensers. Also being considered for this store in Brownwood is a possible pharmacy with a “doc in the box” type of clinic offered, according to Rollins.

Pride in the new store is evident as Rollins spoke of the things United is known for – friendliness and clean stores.

“We have friendly employees who will carry out and sack your groceries. Our checkers and baggers interact with the customers,” said Rollins. “We compete well with Wal-Mart in all of our markets, having a better offering. They have good prices but we have more. It’s easier to shop in our stores and they are clean and neat.”

United Supermarkets is headquartered in Lubbock, Texas and has 51 stores in 30 Texas cities and over 10,000 workers. On September 9, 2013, United Supermarkets LLC was sold to Albertsons LLC but will still be operated under the United name.

Pictured above, Mayor Stephen Haynes and JoeRollins shake hands after the agreement was approved. Also pictured left to right are Brownwood City Attorney Pat Chesser, City Manager Bobby Rountree and Councilman McMillan.