I have a couple of thoughts about the subsidized downtown grocery store 
under discussion.

1) Part of the subsidy is for extensive parking spaces, to match the easy 
parking at other stores.  It seems to me that if people are already in 
their cars, in just 3-5 minutes they could drive to any of several existing 
large grocery stores, for example the new Rainbow store in north 
Minneapolis, or the old Minneapolis Moline site near Lake & Hiawatha, which 
has both CUB & Rainbow stores.  All of those stores are bigger & with a 
larger selection than the proposed downtown store, and given their 
operating costs, I'd bet that their prices would be lower, too.

2) It seems that a large part of the expected customer base for a downtown 
grocery store is the anticipated 30,000 people living in downtown condos & 
apartments.  But from the studies I've seen, these are the kind of people 
most likely to buy groceries over the internet or phone from Simon Delivers 
or similar companies.  And most of them live in buildings with a doorman or 
someone to accept delivery of their groceries, which is the biggest 
drawback to this service in other neighborhoods.  (The other drawback is 
price -- their grocery prices are high, but no higher than Byerly's or 
Lunds prices.)

I worked for a while for SuperValu, the nations largest grocer.  (They 
basically own SuperValu, CUB, Byerly's, Lunds, and a lot of other 
stores.)  I spent a year traveling from Spokane, WA to Xenia, OH installing 
new warehouse ordering systems for them.  The profit margin in groceries 
truly is razor thin, and the risks very high.  I would really hesitate to 
invest any of my money in a grocery store.  And the same goes for my tax 
money!

Tim Bonham, Ward 12

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