City of Brownsboro to sponsor Econ. Dev. Corp. grant application for new grocery store

After forming about a year ago, the Brownsboro Economic and Development Corporation (BEDC) has come up with a plan to attract revenue and assist in the development of a new grocery store in the city.

During their regularly scheduled meeting Thurs., Dec. 14, the Brownsboro city council approved the sponsorship for a Texas Capital Fund (TCF) Real Estate Development grant application through BEDC and local businessman Dusty Wise to assist his + development for the location for his retail grocery business, Y’s Hometown Grocery. The $299,000 grant would be used along- side other funding acquired by the BEDC and Wise.

“We have been working for a year to enhance businesses in town,” said BEDC Chairman Jerry Alexander. “We are trying to get more people to buy in Brownsboro and attract businesses.”

Gary R. Traylor, of Gary R. Traylor & Assoc., Inc., government consultants and planners, in Tyler, presented the city council with a draft of the request for sponsorship.

According to the draft, grant funding for projects of this type is available from the Texas Department of Agriculture, through its TFC Real Estate Development Program. Eligible cities and counties can receive grant funds to make public infrastructure and/or real estate improvements to support a specific business that is expanding or beginning operations in the applicant’s jurisdiction. The funding is contingent upon the business making a capital investment, and creating and retaining jobs for Texans. Funds would be awarded for the express purpose of assisting in the creation of new permanent jobs, primarily for low and moderate income persons.

The only retail grocery in Brownsboro, Y’s Hometown Foods currently occupies a 4,300 sq. ft. building. The business was originally established in 1921 as Holiman’s General Merchandise Store and is one of the oldest businesses in Brownsboro. Wise bought the store from Emerson Chapman in 1991 and throughout the years has made modifications to the building to better serve his customers.

Unable to enlarge his total store area at its present location, Wise has purchased a 1.035-acre tract in eastern Brownsboro situated between FM 3204 and State Highway 31, and is proposing to construct a new 10,000 sq. ft. building to relocate his burgeoning grocery business.

While the total cost of the project is still under development, it is estimated the cost will be around $1 million. The title of the building and property would be shared between the city of Brownsboro and the BEDC, and would be leased to Wise with the payments to be used to eventually acquire ownership.

Wise said he feels the prospects for the new store are very good and gave the city council figures to look over

before making a decision. He told the city council he broke down the number of customers from the Brownsboro, Murchison, Edom area and projected weekly average sales of $62,000. The construction of 90 new homes and families currently under development on FM 607 is also expected to increase sales.

“We did a quick study of the area and there is definitely a potential for growth,” Wise said. “By all means we’re not going to catch every dollar in town but we can catch at least thirty to forty percent of it.”

Wise said the new store will have many new features including a large full service deli department and, to follow the growing trend, prepared meals. Consumers can enter the new store’s well-lit parking lot from either State Highway 31 or Farm-to-Market Road 3204.

“All we’re asking for tonight is a concensus from the council to go forward with moving forward,” Traylor said. “This will give us a chance to get this together to bring to the council in February. ”

The City of Brownsboro is eligible to apply for TFC grant funds, and can serve the role as legal applicant and sponsor for the grant.

“The City is committing to make application and be a sponsor,” Harris said. “Brownsboro would be the financing sponsoring agency.”

Traylor said applications to the Texas Department of Agriculture’s Texas Capital Fund are accepted three times a year and advised the first and best opportunity will take place sometime in March 2007. Approval from the council allows the BECD and Wise to go forward with the application process including obtaining financing for the remainder of the cost of the project from outside financial institutions.

“We’ve been trying for three years to get the money together,” said Steve Wise, manager of Y’s Hometown Foods. “Now that the city has got sewer out there it’s time for us to move. I think it will be great for the city of Brownsboro and great for us. It will be a win-win opportunity for everybody. It will be great for the people of Brownsboro to have a nice clean store that’s easy to shop. Finally, they can shop with us without having to go to Chan- dler, Athens or Tyler.”

Steve moved to Brownsboro in the spring of 2001 to manage his brother’s store, and is looking forward to the opportunity to expand the business.

“I’ve been pushing for this grocery store for I don’t know how long, and this is a home town grocery store,” said Brownsboro city councilman Glen Vest. “I know Steve has gone out and picked up customers to shop and then take them home. I can’t see Brookshire Brothers doing that.”

Other business included the approval of the Brownsboro Police Department to join the local Government purchase cooperative. BPD Chief Ron Shields reported the city can save money on police department purchases without the cost of membership fees or minimum purchase.

“We can save thirty percent on most items,” Shields said. “This gives us buying power for vehicles for and tires.”

The Brownsboro City Council meets the second Thursday of the month at 5:00 p.m. in the City hall.