Tommy Washbush
Park Cedar Apartments
While tenants have moved in upstairs, the planned grocery store on the ground floor of Park Cedar Apartments remains empty.
More than a year after Madison alders authorized a lease with Maurer’s Urban Market for a new grocery store in city-owned space on Park Street, no lease has been signed. Kristie Maurer, owner of the market, says she is waiting to see whether the city council approves a resolution authorizing an additional $1 million in borrowing to make the grocery store, slated for the ground floor of Park Cedar Apartments, operable.
“From our perspective, this is the linchpin, or the final piece,” Maurer tells Isthmus. “The resolution of this will allow me to confidently sign a lease and then be able to really start the final design and turning over the space.”
But if it fails, she says, “There is no contingency plan.” Asked what might happen to store plans if the additional funding is not approved, she adds, “Truthfully, I don’t know.”
After introduction to the city council on April 16, the resolution is expected to be forwarded to the finance committee for action on May 6 and returned to the city council on May 7 for a final vote.
In February Isthmus broke the news that design challenges were delaying the opening of Maurer’s market, and also reported that representatives of the neighboring Pick ‘n Save grocery store would not confirm the store would close once Maurer’s opened.
At that time, city real estate development manager Dan Rolfs was optimistic that the parties — the city and development team of Rule Enterprises and Movin’ Out — could “go Dutch” and split costs to address the design challenges at Park Cedar. In an April 10 memo to alders, Rolfs writes that the city hopes “to recover as much as possible from the developer” in the future.
In the memo, Rolfs said a loading dock needs to be rebuilt and space added for HVAC and refrigeration equipment. A grease interceptor is also needed as is upgraded electrical service. Rolfs noted that some of the “assumptions” made by the developer’s architects were “problematic,” including “those concerning the design of the loading dock and the electrical service to the Grocery Condo.”
Kathryne Auerback, CEO of Movin’ Out, says that the items Rolfs mentions in his memo were based upon “agreed designs” but that the development team is currently “verifying the specifications regarding the loading dock.” Should discrepancies be found, she adds, “we are prepared to discuss a mutually satisfactory solution.”
Despite the disagreement, Auerback stresses that Movin’ Out has “worked in a productive partnership with the city on this project from its inception…. We look forward to continuing our collaboration to help the city fulfill its commitment to the community for a full-service grocery on Madison's south side.”
Approval of the additional financing would allow Maurer to get started on construction while the city and developers sort things out. “It doesn’t put the grocer in the middle of that fight, or that conversation,” says Maurer. “It allows me to focus on what is important for being a grocer, which is designing and building and implementing the space.”
According to a resolution authorizing the execution of a lease with Maurer’s, the grocer would pay about $235,000 per year to the city in rent once the lease begins, an amount that would increase to $412,000 by year 15.
As the city, Rule Enterprises and Movin’ Out negotiate who might pay for what improvements, Maurer says she is moving forward with her plans for the space. “We’re trying to do what we can, but it is a risk, so we do need to make sure that the resolution is passed,” she says. “We’re continuing to work on the guts of the grocery store, so when and if this does pass we will be able to hit the ground running.”
Maurer, who has been attached to the project since 2022, says the process has been “longer than typical, but not unheard of.” She says she is still cautiously optimistic, and an estimated opening in late 2024 or early 2025 is reasonable if the additional funding passes. Once she has more detail about the store’s timeline, “the neighborhood will be the first to know.”
For Rolfs, the timeline has been much longer, with an initial request for proposals for the former Truman Olson site issued in 2015. Speaking with Isthmus in February, he said, “Trust me, as soon as it’s done, you’ll hear me yelling [in celebration]. You’ll know, because I’ve been working on it that damn long.”
