Rumors, reality as supermarket plan emerges

NORTH EAST — John Joseph of Southern Realty Development LLC (SRD) has been coy about the tenant planned for the 36,000-square-foot supermarket to be located behind Thompson Plaza on Route 44 just east of the village of Millerton, home to the North East Athletic Club and Kids’ Time.

Millerton Mayor John Scutieri indicated he believes it will be a Hannaford, saying the business “begins with an ‘H.’ ”

A large audience crowded into the NorthEast-Millerton Library’s annex building on Thursday, Feb. 2, for a presentation on the supermarket plan.

Scutieri led the meeting. Town of North East Supervisor John Merwin did not take part in the presentation.

Joseph apologized for his inability to be forthright about the name of the market.

“It has to do with the lease execution,” he said. “I really don’t mean to be evasive.”

One question he did answer  directly related to the Grand Union nearby in Millerton Square plaza. SRD has repeatedly offered to take over the Grand Union’s lease; its offer has been rejected. If, however, Grand Union’s wholesaler, C&S Wholesale Grocers (the lease holders), as well as landlord Bob Trotta,  became amenable to SRD’s offer, Joseph said his plans would change.

“The truth is our first choice is to redevelop the Grand Union plaza,” he acknowledged. “If they’re prepared to surrender their lease, we’re prepared to pay for it. If they were prepared [to do so] I would not move forward with this [other] project.”

Joseph explained that redeveloping the Grand Union has always been goal number one; building a brand new store on a 10-acre site owned by Quinmill Properties a close second. Another 5 acres has also been acquired by SRD for the project.

“We saw a good opportunity to redevelop the store,  but we were unable to get it done,” he said, adding the Grand Union is 27,000 square feet in size, nearly 10,000 square feet smaller than the proposed new market. “We went to alternative sites. This seems to be the best alternative — one of the few alternatives in town.”

Next steps

The application is in the midst of its site plan review. The next step will be to plan for a public hearing, which must be publicized well in advance. The town must also complete the State Environmental Quality Review Act (SEQRA) process, which could be subject to either a short-form or long-form Environmental Assessment Form, which will dictate the length of the review process.

Not everyone was content to listen to the presentation; some wanted to voice their concerns about having a big box store in the town of North East.

Peter Greenough of Millerton was among them.

“I’m on the village Planning Board,” he said. “We’ve had no input, and people are concerned this project might vacuum up a lot of businesses in the village and hollow them out. There are probably 10 or 15 things people are concerned about.”

 “Honestly, it’s just a freestanding grocery store,” said Joseph. “It’s not a Walmart.”

“I haven’t heard one person say they think this could damage downtown,” Scutieri said. “How many people shop at the Grand Union now? Think about how many people are going outside of town to do their shopping.”

Amenia resident Sharon Kroeger, who is a member of the Tri-state Chamber of Commerce, said, “If you put a Hannaford here it will suck up stores and resources and send them to Belgium. It’s a regional issue, not a town issue.”

Millerton resident Peter Richmond asked the mayor why he was sitting on stage with the developer, clearly supporting the project.

“Yeah, I’m the mayor, but I’m also a taxpayer,” Scutieri said. “And I dislike the Grand Union as much as anybody. This area deserves a new grocery store. … I can’t go anywhere right now without hearing about it.”

“Good for you,” said North East resident Cathy Fenn. “John’s not just mayor, he also cares about the community.”

“I think it’s important for our village to have smart growth,” added Millerton resident John Panzer. “It adds value to our village. We need good projects like this, thoughtfully developed and executed. I care about other towns, but I especially care about this one. We need good businesses and jobs.”

“There’s an option,” Schulman said. “I hear Freshtown has an option to go into Grand Union.”

Freshtown

Scutieri then introduced Noah and Dan Katz, owners and operators of Freshtown supermarkets, with locations in Amenia and Dover that are part of a 65-store cooperative. The brothers had been in the audience, watching the SRD presentation.

The fact that Grand Union is supplied by C&S Wholesale Grocers, the same wholesaler that supplies Freshtown, makes the Katzs’ plans to take over Grand Union seem more plausible than SRD’s plans, according to the brothers.

C&S only became their wholesaler at the end of last year, which is why they are entering the Millerton grocery discussion so late, they said — roughly a year after Joseph appeared with his plans.

“We know we’re coming in late, but the explanation is the 65-store cooperative last year switched suppliers,” Noah Katz said. “We have a great relationship with C&S, who are clear they don’t want to  be in the retail business, so we said let’s do it. It’s great.”

Freshtown has an application before the Planning Board, Katz said, although it’s missing one signature. He also said his stores, especially the newer ones, are $10 million stores, completely updated and offering the freshest and the finest any supermarket can provide.

Sunday in the Country Food Drive organizer “NASCAR” Dave MacMillan rose to praise the Katz brothers, and the civic service the Freshtown stores continually offer the community.

“I just want to say my experience with the Katzes for the past 10 years ... I just hope anybody who comes into the community is as dedicated as this family is to the community,” he said. “We need people who give back to the community.”

Millerton resident Eva Yuranich, a young mother, however, had less favorable comments about Freshtown. She said her experiences shopping at the store have hardly been ideal, and she instead travels 40 minutes each way to shop at the Hannaford in Red Hook.

Millerton resident Anne Veteran asked the Katzes why they decided to venture into the village.

“I don’t understand the risk,” she said, noting the Grand Union and the site of the SRD proposal are just down the road from one another. “You could be stuck in a 25-year lease that you’re going to take over when a bigger company [with the SRD application] is going to come in next to you.”

Noah Katz replied that he and his brother are going to “do what they do,” and proceed even if the SRD plans move forward. Dan Katz added they have “access to the capital needed to renovate the property.

“We are optimistic and would like to come to Millerton,” he added. “I think we can give you a great store.”

Scutieri suggested Freshtown allow SRD to pursue its project and let it “live or die on its own merits and then we’ll welcome you,” but the Katzes didn’t quite take to that sentiment.

“We did not just show up a few weeks ago,” Noah Katz said, adding the process started last year.

At the meeting’s end the mayor suggested anybody who would like to weigh in call the Village Hall or Town Hall with their comments, or write a letter with the same.

“The last thing anybody wants is to be stuck with the Grand Union for another 10 years,” Scutieri said, urging public participation.

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