Hill District leaders may want a stake in a potential new Save-A-Lot grocery store as part of an overall package of community benefits linked to a new arena, they said yesterday after the chain's executives made an initial sales pitch.
Save-A-Lot's announcement that it sees itself as "a perfect fit" -- in the words of chain Director of Development Dick Koop -- for the grocery-deprived Hill may add another party to talks between neighborhood groups, the city of Pittsburgh, Allegheny County and the Penguins.
The announcement "could open up additional discussions regarding community equity, given this particular operator," said Paul Ellis, an attorney for the One Hill Community Benefits Agreement Coalition. Three-quarters of Save-A-Lot stores are run by independent operators, and the chain emphasizes strong community ties.
A big question, Mr. Ellis said, is "how do you deal with the prospect of a loss of profit?" It's unclear whether any community group or leader investing in the store would be financially exposed should the store do poorly, he said.
In a news conference yesterday at the Grand Concourse restaurant at Station Square, Save-A-Lot executives emphasized that talks with local leaders about a Hill District location are "preliminary." But they added that they are trying to boost their local store count from six to 10 and view the Hill as an ideal location.
The chain's stores are typically 15,000 square feet, offer some 1,500 to 2,000 low-priced items, employing 20 to 25 people, and cost $3 million to build.
One Hill wants the neighborhood to have a stake in new development, possibly including partial ownership of a store. It argues that the publicly subsidized $290 million replacement for Mellon Arena should bring guaranteed benefits to the host neighborhood.
The Penguins, primary tenant of the arena, and the Urban Redevelopment Authority have offered $1 million each to any grocer seeking to open a Hill store. The Landmarks Community Capital Corp. could add more, said its chief executive officer, Howard Slaughter Jr., who helped spur the chain's interest.
Councilwoman Tonya Payne said that for the neighborhood to have partial ownership, its leadership "would need to be in a position where they could assume risk ... We have to be careful that we're not putting in so many roadblocks that it never happens."
Save-A-Lot executives said they want to be sure that the Hill wants their store. Ms. Payne said she will conduct a community meeting on that.
