By Nicole Bowman-Layton

For years, residents have called for a second grocery store in Chowan County.

The topic regularly surfaces on social media, at public meetings and in conversations around town. Residents cite a variety of reasons for wanting another option, including increased competition, more product choices and improved access to fresh foods.

Now, Chowan County commissioners are considering whether incentives could help make that happen.

The Chowan County Board of Commissioners will hold a public hearing during its June 15 meeting at 6 p.m. to gather public input on a proposed incentive package tied to a grocery store interested in locating in the former Food Lion space at North Broad Street Shopping Center. The meeting will be held at the Chowan County Public Safety Building on West Freemason Street in Edenton.

The proposal has generated discussion online, particularly over the county’s potential commitment of up to $500,000 over five years.

County Manager Kevin Howard acknowledged the community’s longstanding desire for another grocery option.

“We know the public wants it,” Howard said during a recent commissioners meeting. “We need to know whether the public wants us to spend $500,000 to bring it here.”

The proposal comes as redevelopment efforts at the shopping center continue to move forward. During a recent Edenton Town Council meeting, Main Street Edenton Executive Director Ches Chesson announced that a grocery store anchor had signed a letter of intent for the location.

Chesson said the potential grocery store is a full-service grocery store offering a scratch bakery and butcher services at all of their locations.

But Joe Wach, chairman of the Edenton Chowan Partnership, says one key detail has largely been missing from the public conversation.

“The incentive isn’t paid first,” Wach said during an interview with the Albemarle Observer.

How the Incentive Would Work

Much of the public discussion surrounding the proposal has focused on the $500,000 to be paid by Chowan County as a grant. Under the proposal, the Town of Edenton will also give an incentive in the form of a grant.

Wach said many residents understandably hear that number and assume local government would write a check to a private company before receiving any benefit in return.

According to Wach, that is not how the proposal is structured.

Under the framework currently being discussed, the grocery company would first have to invest its own money into the project by renovating the former Food Lion space, purchasing equipment, hiring employees and opening for business.

The company would then have to operate successfully and meet agreed-upon performance benchmarks.

Only after those investments have been made and those benchmarks have been achieved would incentive payments be considered.

Under the proposal, the county’s contribution would be paid over five years at a rate of up to $100,000 annually. No payments would be made during the first year of operation.

If performance requirements are not met, future payments would stop.

Supporters describe the arrangement as a performance-based grant rather than an upfront payment.

Wach said the proposed structure is designed so that the grocery operator must first create the economic activity before receiving any incentive funds.

“The benefits come first,” Wach explained. “The investment, the jobs and the revenue all happen before any grant payment would be made.”

Howard has indicated that the county’s contribution would likely be administered through an agreement with another entity, such as the Town of Edenton, before ultimately being distributed to the grocery company. Final details of any agreement remain subject to approval and negotiation.

Years of Recruitment

For years, the Edenton Chowan Partnership, a local nonprofit organization dedicated to growing the economy of Edenton and Chowan County, has helped Chowan County and the Town of Edenton attempt to recruit a second grocery store for the community.

According to Wach, those efforts have often been challenging because grocery chains evaluate population size, demographics, median income and shopping patterns before deciding where to invest.

Despite repeated efforts by local leaders and economic development advocates, previous recruitment attempts did not result in a new store.

Supporters say the current proposal represents one of the strongest opportunities in years to bring a full-service grocery operator to the vacant North Broad Street location.

Graphic shows how economic development brings in more funds to the county, which makes the county government less reliant on property taxes as explained by Edenton Chowan Partnership Board Chair Joe Wach. (created with help from ChatGPT)

Growing the Tax Base

Wach argues the proposal should be viewed not only as an effort to recruit a grocery store, but also as an attempt to expand the county’s tax base.

County government relies on several revenue sources to fund its general fund, including property taxes, sales taxes and business personal property taxes.

Wach said a grocery store could contribute to those revenue streams in several ways.

Renovations to the former Food Lion building could increase the property’s assessed value, generating additional property tax revenue.

The business would also pay taxes on equipment such as shelving, refrigeration units, freezers, point-of-sale systems and other fixtures through North Carolina’s business personal property tax system.

In addition, sales made by the store would generate sales tax revenue.

Supporters also point to construction jobs during the renovation phase and permanent jobs once the store opens.

Wach said economic development efforts are intended to create new sources of revenue rather than relying solely on existing taxpayers.

“Every time government needs additional revenue, it’s easy to look at the existing tax base,” Wach said. “What (the partnership is) trying to do is create new revenue streams.”

Supporters argue that increasing those revenue streams could help reduce future pressure on existing taxpayers by broadening the county’s overall tax base.

Why ‘Anchor’ Stores Matter

Supporters say the potential impact extends beyond a single store.

Retail industry research has long identified grocery stores as important “anchor tenants” because they attract frequent customer visits and generate foot traffic for neighboring businesses.

A 2022 study from Cornell University examining hundreds of neighborhoods found that anchor stores increased customer traffic to nearby businesses by between 14.2% and 26.5%.

Commercial real estate experts often cite grocery stores as among the most effective anchor tenants because customers typically visit them on a regular basis.

Those additional visits can benefit nearby businesses and make shopping centers more attractive to future tenants.

Supporters believe a grocery store could help increase activity throughout the North Broad Street Shopping Center, which has seen new investment in recent years but still contains vacant space.

Questions remain

The proposal is not without questions.

During discussions with commissioners, Howard noted that the project differs from traditional economic development incentives, which often focus on manufacturing or industrial recruitment. As such, the county will have to give either the Town of Edenton or the Partnership the incentive funds to distribute.

For some residents, the question is whether public funds should be used to support a private retail business.

For others, the question is whether the potential benefits outweigh the cost.

Supporters argue the proposal could help bring a long-sought second grocery store to the community while generating new tax revenue, creating jobs and encouraging additional economic activity.

Residents will have an opportunity to share their views during the June 15 public hearing before county commissioners decide whether to move forward with the proposal.