No $550K city loan for Clifton Market

Despite a "fantastic job" of raising money, it appears the group working to develop a co-op grocery store in Clifton will not get a $550,000 city loan, according to a Friday memo from City Manager Harry Black.

The loan would have helped close a key funding gap for the Clifton Cooperative Market at the shuttered Keller's IGA at 319 Ludlow Ave.

The memo from Black to Mayor John Cranley and members of City Council said the administration is impressed by the group's fundraising efforts but the risk was too much for the city to bear. Instead of a loan, the memo referenced potentially granting a 12-year, 75 percent property tax abatement for the project.

The memo said the Clifton project is similar to the Pleasant Ridge Market that opened in 2003 in a former IGA building on Montgomery Road. The city chose not to invest in that venture either.

"Investing $550,000 in any start-up is a major concern for the administration," the memo said. "Start-ups are inherently risky ventures, and the proposed store faces intense market competition. Due to these risks, start-ups are not eligible for existing economic development financing tools, such as the Grow Cincinnati Loan."

Cincinnati Vice Mayor David Mann proposed the loan idea earlier this month during a Council Budget & Finance Committee. The money would have come out of the city's Fiscal Year 2016 budget.

Mann's proposal came as Cincinnati is preparing a total overhaul of city rules on incentives and loans.

City Council unanimously passed a motion last September asking the administration to prepare a report detailing the city's policies for doling out financial assistance and incentives.

A subsequent Enquirer investigation found that Cincinnati city officials provided an estimated $250 million in incentives granted to businesses since 2008. The newspaper created a database of more than 200 development deals because city officials had never compiled the overall data.

The Clifton Market development group bought the former Keller's IGA, which closed in 2011, for nearly $878,000.

Since co-op organizers began fundraising in March 2014, nearly $1 million has been raised. They are working to secure additional financing to renovate and reopen the store.

The memo said the group recently received a nearly $1.9 million loan from the National Cooperative Bank to support the project. The entire project is expected to cost about $5.6 million. The co-op market now has more than 1,000 share owners, according to the market's website.

Supporters say the market would fulfill an unmet need in the neighborhood and support the Ludlow Avenue business district.

The co-op is expected sell organic and locally sourced produce, seafood, bakery items, beer and wine, health products, baby products and pet food. The store is also expected to have a butcher and a deli counter.