DALLAS — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
Peter Brodsky and his team aren’t giving up on their goal of bringing a grocery store to the Shops at RedBird redevelopment.
A highly anticipated Tom Thumb store had been slated for the southern Dallas site. But news broke recently that Albertsons Cos., which owns the chain, changed its mind and terminated an incentives deal with the city. The company had been approved for $5.8 million in subsidies for a store that was expected to be about 50,000 square feet and generate at least 90 jobs.
Brodsky, developer of Shops at RedBird, found out a few weeks ago that Tom Thumb was considering pulling out so the news wasn't a shock. He said he persuaded the grocery store chain to reconsider but found out last week it was off the table.
Brodsky said he was not given an exact reason for the company’s decision to halt the development of the Tom Thumb but infers based on its statement that the organization wasn’t confident the store would be successful.
But with grocery store options limited in southern Dallas, Brodsky has suggested a Tom Thumb would have generated more traffic than a typical Albertsons-owned grocery store.
"Southern Dallas is a vibrant area. The area around RedBird is solidly middle class," Brodsky said. "Almost every store that we've brought or restaurant, be it Starbucks, Breakfast Brothers, Chick-fil-A or now the AT&T store, have been very successful. Foot Locker is very successful, so there's plenty of money in the community. People will spend that money if they're given a high-quality product to buy, and that's why I was extremely confident that Tom Thumb would do well."
Albertsons said in a statement it made the "difficult decision" after "discussions with the City of Dallas and a thorough economic evaluation."
The RedBird team is now headed back to the drawing board and plans to talk to as many grocers as possible to bring a new tenant to the development.
Led by Brodsky along with co-developer Terrence Maiden, the Shops at RedBird redevelopment aims to transform a 107-acre former mall into a thriving commercial property with office, residential, restaurant and retail space. The Tom Thumb would have joined tenants including Dallas College, Chime Solutions, and upcoming tenant Children’s Health and activated the west side of the development.
Renovations planned for the west wing of the complex include interior upgrades, a new façade with windows and storefronts and the creation of a small green space.
"While Tom Thumb was taking a risk in terms of operating the store, we were taking a huge risk in terms of building the store," Brodsky said. "We were absolutely putting our money where our mouth is and would happily do so today because we believe so strongly in the purchasing power of the community."
