Chicago City Council approves $13.5M project to revive Save A Lot stores in food deserts

Minority-owned company Yellow Banana received a $13.5 million community investment grant this summer. It was the largest grant awarded in the funding round, to be used to invest in food deserts in communities on the South and West Sides of Chicago. On Monday, the Chicago City Council’s Finance Committee approved the $13.5 million in city subsidies for Yellow Banana to purchase and renovate six Save A Lot stores, including a shut- down Auburn Gresham market that is now slated to reopen.

The redevelopment agreement will authorize $13.5 million in tax increment financing and other city subsidies. And, to justify the city subsidy and ensure grocery access across Chicago, all six stores must remain open for “no less than 10 years,” said Deputy Planning and Development Commissioner Tim Jeffries. “If a single store closes or is sold during that time, then the developer must return all previously dispersed funds to the city for all six stores."

In addition to renovating the stores, rebranding is also being considered.

Chicago West Side Alderman Jason Ervin (28th ward), chairman of the City Council’s Black Caucus, has expressed concern over the branding of the stores, and feels that the name Save A Lot has been damaged, as many local residents feel betrayed by the company’s closings of stores in underserved communities.

“Sign at least the 420 S. Pulaski store up for a name change or a rebranding of some sort, just to bring a fresher perspective for the community and give them a sense of a restart,” said Ervin, according to a report from the Chicago Sun-Times.

Michael Nance, co-founder of 127 Wall (parent company of Yellow Banana), has said that it is understandable that rebranding may have to take place to change the community’s perception of the stores, and his team is considering it.

“We fully appreciate the reputational damage that Save A Lot has done in the city of Chicago by shutting down stores, such as the store that we seek to reopen at 79th and Halsted. We understand that it’s unacceptable to unilaterally make these kinds of decisions without including the community’s voices,” Nance said in a statement to the finance committee.

A mural on the building that embraces the culture of the community is one rebranding idea, and Nance said the company could hire a local artist using its own dollars. “Where there is a demand that these stores be branded something other than Save A Lot, we think we can get it done,” he said.

The company has said it plans to combine additional money with the grant, to invest approximately $26 million into six Save A Lot locations at: 7908 S. Halsted St. in Auburn Gresham; 420 S. Pulaski Road in West Garfield Park; 10700 S. Halsted St. in Morgan Park; 2858 E. 83rd St. in South Chicago; 7240 S. Stony Island Ave. in South Shore; and 4439 W. 63rd St. in West Lawn.

“We are thrilled about the City of Chicago's investment in the passionate team at Yellow Banana and the Save A Lot stores they own throughout the city's South and West Sides,” Save A Lot CEO Leon Bergmann said in a statement.  “Quality brands at affordable prices are at the heart of Save A Lot's identity, and we are honored to be able to provide that to Chicagoans in underserved communities through our retail partners at Yellow Banana. We’re confident in their ability to maximize the success of their stores by serving the Chicago community and giving these stores, and their customers, the attention and enhancements they deserve.”

Save A Lot has more than 850 stores in 32 states. Retail grocery platform Yellow Banana operates 38 Save A Lot locations across the Cleveland, Chicago, Milwaukee, Jacksonville and Dallas areas.