NEVADA CITY, Calif. September 7, 2010 - After two years and three months of paperwork, a market study, floor plan development, countless changes, emails, correspondence and phone calls -- not to mention cost amounting to $175,000 -- California Organics owner Chris Kysar received a terse rejection letter for his "Over the Counter Pre-Application" from the State's Department of Housing and Community Development.
California Organics, a 33-year old natural food grocery store, is currently located at 135 Argall Way in Nevada City. The growing natural foods movement and the area's demographics, coupled with a unique opportunity to move into downtown Nevada City, led Kysar to begin the laborious process in June of 2008.
Move to Broad Street Building a Win-Win for City, Business
The planned move to the old Broad Street Furnishings building at the foot of Broad Street would allow for store expansion and contribute to the revitalization of downtown Nevada City. The building, which has stood empty for almost two years now, is located at the entrance of the town, adjacent to the Highway 49 off ramp.
With the help of Nevada County's Housing and Economic Development Division, Kysar submitted his application to receive funding through a federal program called Community Development Block Grant (CDBG). The application was modified twice to accommodate changes requested by the state agency which pre-screens funding requests.
Kysar planned to create a minimum of 35 new jobs; he currently employs 33 people. The store would feature a 10,773 square foot retail space, a grab-and-go deli and restaurant.
Rejection Letter Based on Outdated Information?
The rejection letter by the state cites several reasons, including "necessary revisions to floor plans, plans and costs for demolition and reconstruction required for parking," all of which were addressed in the third revised application, according to Kysar.
The project calls for the removal of a building extension located on the parking lot on Commercial Street, with the cost being carried by the owners of the building. It is not part of the CDBG application.
The revised floor plans were submitted by Kysar when he hand-delivered the revised application.
Kysar states that the agency has only issued 3-5 CDBG over the counter loans in the past two years, a surprisingly low number for an agency dedicated to improving the economic vitality of communities.
Calls for comment by the agency were not returned by publication time.
What is a CDBG Loan?
The CDBG over the counter program is designed to provide funding for a project through federal loans. Once the loan is repaid, the funding is available for another project in the same community.
Community Support for the Project
The bright side of all this comes from the tremendous support the project has received from the community, Kysar says. From the store's customers to the owners of the building, the city and the county, everyone is hoping the project will succeed. Gary Tintle, the owner of the building, gave free rent for the first year and reduced rent has been accumulated since.
Customers are generally excited about the store moving into downtown. When Kysar announced the project on the store's web site, the response was very positive, according to Kysar.
Nevada City Mayor Robert Bergman reaffirmed the city's support for the move, saying "From early on, the City has embraced California Organic's move to 210 Broad Street. It's presence there would accomplish more than filling a vacant commercial space at the bottom of Broad Street. It would add a vitality to town - a daily community draw that is missing now - and, of course, a place to meet and shop. I'm sure the City's support for the project will continue, and I hope work there will begin in earnest soon."
Next Steps
While disappointed by the rejection letter, Kysar is not willing to abandon the project. He sent a letter to Congressman McClintock and plans to pursue other avenues if necessary.
"I'm a grocery store owner, and I will keep doing what I know best, providing our customers with the best organic produce and meat available. I will continue to look for an alternative, be that private funding or a better conclusion to this loan," Kysar told YubaNet.
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