Grocery store in negotiations for former Fox River Grove Dominick's

Published: Friday, Jan. 17, 2014 4:16 p.m. CDT • Updated: Sunday, Jan. 19, 2014 12:10 a.m. CDT
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(Kyle Grillot – kgrillot@shawmedia.com )
Village officials say there are discussions between Safeway and an undisclosed grocer to take over the former Dominick’s location at Routes 14 and 22 in Fox River Grove.

FOX RIVER GROVE – Negotiations are ongoing for a possible grocery store to come replace the Dominick's at the intersection of Route 14 and Route 22, village officials have said.

Village President Bob Nunamaker said Safeway, the parent company that owned Dominick's, has not disclosed the name of the grocer to him as confidentiality agreements are in place.

However negotiations had reached a point where the Village Board on Thursday was prepared to discuss a redevelopment agreement for the grocery store. The location is in one of the village's tax increment finance districts.

Because negotiations had not progressed far enough, officials took the agreement off of the agenda, Nunamaker said.

The village can offer reimbursements on expenses such as land acquisition.

Dominick's had a sales tax rebate agreement with the village, but Nunamaker said the village would not be able to offer a similar deal.

Nunamaker said the village can help bring Safeway into contact with possible interested tenants.

"We have talked to many store operators. We have interested store operators. We have talked to Safeway," Nunamaker said. "Safeway says they are negotiating with possible purchasers of the property."

Safeway wouldn't comment on whether negotiations were ongoing.

Last year, Safeway closed its 72 Dominick's locations in the Chicago area in an effort to become more profitable.

Jewel took over four of the properties and Roundy's took possession of 11 of the locations to open Mariano's Fresh Markets.

There are also former Dominick's locations in Crystal Lake and Lake in the Hills.

Lake in the Hills Community Development Diretor Dan Olson said there are two retailers, one of which is a furniture business, who are in negotiations about locating at the former Dominick's at Algonquin and Randall Roads.

Olson said he could not disclose the names of the retailers.

If there was an agreement for the location, the two retailers would split the Dominick's space.

James Richter II, the assistant director of Econmic Development for Crystal Lake, says the city has been in contact with potential retailers and grocery stores about locating at its former Dominick's along Route 14.

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