Jason Williams, Bowdeya Tweh, and Alexander Coolidge

Cincinnati

Kroger is working toward opening a new Downtown grocery store near its corporate headquarters, The Enquirer has learned.

The store likely would be at the southeast corner of Central Parkway and Walnut Street along the streetcar line and next door to the Hamilton County Administration Building. Kroger isn't working on the project alone and has tapped a development team to potentially build a new parking garage and apartments at the site as well, multiple sources told The Enquirer.

The site is now operated as a parking lot and owned by affiliates of Sycamore Township-based Rookwood Properties.

Kroger already operates a small, 12,000-square-foot store at 1420 Vine St. in Over-the-Rhine. The neighborhood store opened in 1961.

The Cincinnati Center City Development Corp. (3CDC) is involved the project, according to sources, but its role is unclear. The project would be one of the crown jewels in the more than decade-long effort led by 3CDC to redevelop Downtown and Over-the-Rhine. Calls to 3CDC officials Tuesday were not immediately returned.

A deal has been in the works for months, but it's unclear when an agreement could be announced or when construction would begin. Less than a year ago, Kroger executives openly discussed the possibility of developing a Downtown store. Kroger's acquisition of grocery chains Harris Teeter and Roundy's in the last couple years have also brought the company insights on how to effectively operate urban stores with smaller footprints than typical Kroger stores.

Downtown Cincinnati hasn't had a new supermarket in more than 40 years, and the grocer has long been pressed by interested neighborhood groups to develop a supermarket. Downtown boosters, including streetcar advocates, have been asking for a new store to help continue to attract new residents to live and work in the city's urban core. However, skeptics have said Kroger's interest has been geared toward driving away competitors who may be interested in battling on the company's home turf.

Kroger's plan appears to be the most substantial effort to build a new grocery store in the heart of Downtown after years of other ideas either falling through or being nothing more than rumors. Company officials say they’ve explored building a Downtown store at several potential sites for years including in the headquarters space for its analytics subsidiary 84.51º at Fifth and Race streets.

Kroger officials wouldn't confirm or deny the latest potential project, but reiterated their desire one day operate a Downtown supermarket. Finding the "right opportunity" has been complicated, company spokesman Keith Dailey said.

"We remain committed to building a new Downtown Kroger store – we've been working on this for a very long time," Dailey said. "Clearly Downtown Cincinnati is growing and thriving and we are very interested in providing a grocery store that is economically viable."

Nick Hodge, a Kroger vice president and head of the corporate real estate division, told people attending a UC Real Estate Center meeting in May that the biggest issue with downtown locations is. Those costs, Hodge said, reflecting difficulties in completing vertical construction, building structured parking and operating a store profitably at a smaller scale.

But that doesn't mean the company isn't trying. Last year, Kroger's King Soopers brand opened a store in Denver's Lodo neighborhood. Earlier this year, Kroger, with mixed-use real estate developer New City, started construction on a 60,000-square-foot store in Atlanta that's part of a larger office development planned with underground parking.

Mariano's, a Chicago chain acquired last year as part of the Roundy's deal, said both the barbecue and oyster stations in their stores were big draws for customers.

"Clearly, we want to be an urban player," Hodge said. "We will do it when it's economically viable, that's the key."

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