An article in today’s newspaper reports that a company called ALDI, Inc. wants to build a grocery store on Oak Ridge Turnpike.
ALDI does not currently have any locations in the Knoxville metro area, but the ALDI company website and the Wikipedia article on ALDI have a lot of information about this business.
It appears to be different from anything currently in the Oak Ridge market. It calls itself a discount grocery store and has smallish stores (a 17,000-square-foot store is proposed for Oak Ridge) with limited hours. It seems that many of us thought “sounds like United Grocery Outlet” when we read about the proposal, but the two companies’ business formulas appear to be very different. UGO occupies existing storefronts and describes itself as a “closeout grocery merchant … [that] specialize[s] in handling inventory imbalances, closeouts, packaging changes, close dated product, factory seconds, and trial run products.” On the other hand, ALDI appears to prefer purpose-built stores (see image) 
and specializes in selling quality private-label groceries.
ALDI is a European company with some European-style approaches to “no-frills” supermarket operation — you need to deposit a quarter in a slot in order to get a shopping cart (the money is returned when the cart is returned) and they charge for grocery bags. They also carry some European gourmet-type items in their stores, although there’s less high-end merchandise than in the Trader Joe’s chain (not found in Tennessee), which apparently belongs to the same family that established ALDI.
Although I’d like a Trader Joe’s better (I’ve enjoyed shopping at Trader Joe’s in other cities), ALDI seems to be a business that would fill a vacant niche for Oak Ridge. It would particularly benefit those east-side residents who mourn the loss of the east-side Food City, including many folks who could walk to this new store.
However, the proposed site is undeveloped land (most of it already zoned commercial) that backs up to a residential neighborhood where people are concerned about inadequate screening of the noise and light from the nearby drive-in restaurant. Loading docks and grocery supply trucks would not be a welcome addition to the neighborhood…
Yet another opportunity for City of Oak Ridge retail, this is obviously not the last time a retailer would consider Oak Ridge, would Oakridgers allow this there?
There could be other locations, but retail is calling the moves and not a developer. In addition, I feel the UGO would be urged to step up to shopping convenience like an easier storefront, better parking, etc, … “The devil is in the details.” It would seem such a store could easily be placed with side loading docks, leaving its rear appearance adaptive to residential design.
I would hope this next retail approach is taken seriously with the actual structure and landscape improvements included with if any city proposal of funds. But to follow a trend our elected officials have refused to buck with interrupting action within commission and board actions, I would bet another tax abatement is granted with very little given to the improvement of easiness and safety of use by the citizens.
I hope this retailer will take its own responsibilies to find a place in City of Oak Ridge while the city finds its way to make the location a safe place to shop.
Now that Mr. O’Connor is moving to allow tax abatements for GBT, I find this will hurt the ALDI store even if given tax abatements. As a business owner, the realization of profits would be favorable in any tax abatement, but what is the gauge of equity for the city when giving tax abatements? Is it only to raise sales taxes? This is why a covenant is placed in the deeds of surrounding properties. Particularly, it gives protection to Wal-Mart for unfair practices acted out by a city council. This is how I see our city manager is acting, playing favorites within a policy.
How is the equity of sales tax found? It isn’t Freedom.
Actually, I expect that ALDI will be asking for property tax abatements under an arrangement enacted by City Council in 2004 and renewed more recently. Abatements are available for most retail developments with more than $1M capital investment, although to get this abatement the business must be willing to deed the property to the Industrial Development Board (some will not do so).
When a project gets city government reviews/approvals one-by-one (this one is already properly zoned, but it needed or needs engineering staff review, Traffic Safety Advisory Board review, Planning Commission approval for the site plan, and City Council approval for highway access, and it probably will need IDB approval for a tax abatement), the applicants feel like they are running a marathon and the entities providing the approvals don’t have the full picture of the impacts of the development.
I share your concern that the goal of increasing sales taxes should not be the sole concern of city government in considering retail development proposals. Increasing city revenue definitely is a big concern for city government, but the city government also needs to be concerned about maintaining and enhancing community character/liveability. Furthermore, I don’t think it is realistic to assume that the current profitability of sales taxes for local government will continue for many years in the future– there are many reasons to expect the situation to change.
As retail concerns involve much public opinion, I hope for a correct stand on keeping Oak Ridge attractive better than the tax abatements have done. I do not know if ALDI CEO’s made their decision on Oak Ridge because of it, but they are here and filling the time of our wonderful citizens volunteering in our city’s boards.
Upon first look, I see SONIC could use some help with their entrance. A future service road is a possibility for the commercial lots located there. Will that intersection of the Fire House, Home Depot and Sonic be upgraded? This should be utilized to further promote retail and safety. As the article stated, a Florida Avenue entrance is also in the plan. I’m waiting to hear the advantages and disadvantages from the officials and citizens affected. I believe this would be the main entrance for clients, vendors, customers, employees, and trucks. That is a problem, as the ORGIS has those lots as residential. I feel another business corridor is being pushed upon the citizens there, and this should be handled as intensely as S. Illinois is going through.
My picture of the ALDI store is in line with Ms. Shelton’s thoughts. My interpretation of loading docks in front is like driving down Magnolia Avenue in Knoxville. Those homes back up to businesses, and the corridor of business there mainly has frontal loading docks or service bays. That road becomes very congested with delivery trucks for it is the only serviceable road to those businesses and the docks are always filled with empty crates, carts, trucks, and cars. That I see is our future if ALDI is allowed to put front loading docks.
This appears to be just the fate of business, a negotiation of give and take, they are taking tax credits but what are they giving the citizens?
On a daily basis, I become enamored with amusement at the many
Happenings in the windy city of Oak Ridge in impinge upon double standards. Most recently citizens where lambasted with the retort that Oak Ridge schools where under funded and desperately need a New infusion of taxpayer money. So the sitting city council passes a 10 cents Per 100 and gave 5 cents to the schools.
All during this in cooperation with the City Council and the IDB tax abatements
have been steadily passed out to preferred businesses . While this has been going on there has not been a whimper from the school board nor the City Council. I have always felt that both the City Council as well as the School board has intelligent citizens serving.
But I have not heard anyone address the fairness in the thousands of taxpayer property taxes (school tax money) given away at my expense. To businesses to escape school taxation after all that what property taxes are for?
LeRoy Gilliam
LeRoy, we need more synergy of our citizens. The more talk out of this city just may get someone to look at us with both eyes open. I guess some people are just for talking while some are listened to. Maybe why Dr. Bailey doesn’t bite business as much as he bites citizens is that he doesn’t know any better. It is about time his network is energized, as important as retail is to this city’s gossip I would think he would step out and say something.
It would be too difficult to change the mind of Oak Ridgers, which is why some of us are just not bread to be an elected official, but for the upcoming Charter Committee and to change, housecleaning, our policy, I would like to see you there if you have the time.
just passing on a little info your city may not know about aldi. they have a couple of recent discrimination charges against them that were filed with the eeoc. they withheld vacation pay from a couple of their ex-employees one of which the ex-employee contacted the department of labor and won the case. aldi only staffs a limited amount of employees on any given shift so beware of the refrigerated and freezer products as they may get left a checkout by a customer who has changed their mind about purchasing the product and that product may not get back to the freezer or refrigerator as quickly as it should.
Interesting comment. I suspected as much, but that is what they sell, used food and products. Further research has found this store to not be so neighborhood friendly, yet they want to be placed abutting residences. But Oak Ridge has a problem with tax revenue. Many elected and appointed officials are unable to look past that. I believe your and my comments have fallen on deaf ears.
Boeing property is slated to fall the tax abatement way, this is quantity enough allowing ALDI to have what they want in City of Oak Ridge, to further protect the elite of West Knoxville by selling out City of Oak Ridge residents.