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Grocery: The Hunt is On...

Kent State has had great success with it’s sport teams since adopting the “Hunt is On” slogan, so in that spirit I’m borrowing it to describe our Hunt for new grocery in Kent. Although I’ve been in the hospital, the development staff have been busy working the phone lines to reach out to grocery prospects. I can’t say that we’ve landed one yet, but the response to the cold calls has ranged from the “click” of the phone being hung up on us, to genuine interest and exchanges of information. Ultimately, it will be up to the plaza property owners to close a deal with a new grocer but we’ll try to get as many grocers in front of them as possible.

Here’s the list of prospective grocers that we’re trying to get in front of the plaza property owners.

Prospective Grocery Store List
Updated 2/16/07

1. Marc Glassman Inc. (Marc’s)
5841 W. 130th Street
Parma, Ohio 44130

2. Aldi
1319 W. 130th Street
Hinckley, Ohio 44233

3. DeViti’s Italian Market
560 East Tallmadge Avenue
Akron, Ohio 44310

4. Mustard Seed Market & Cafe
3885 West Market Street
Akron, Ohio 44333
Margaret & Phillip Nabors

5. Wilson Mill Foods Inc
dba Catalano’s Stop & Shop
5612 Wilson Mills Road
Cleveland, Ohio
John Catalano

6. Dave’s Groceries
3301 Payne Avenue
Cleveland, Ohio 44114-4313
Dan Saltzman

7. Porters IGA
8283 Windham Street
Garrettsville, Ohio 44231

8. Vaughn’s Market
7311 State Route 43
Kent, Ohio 44240

9. Save-A-Lot
100 Corporate Office Drive
St. Louis, Missouri 63045
Bob Ferratto

10. Seven Grains Natural Market
92 West Avenue
Tallmadge, Ohio

11. Big Apple Supermarket
1650 Youngstown Road SE
Warren, Ohio 44484

12. Buehler’s Fresh Food Markets
7138 Fulton Road NW
Canton, Ohio 44718

13. Trader Joe’s

14. Fisher Foods

It’s always dangerous to speculate about what could, might, should happen based on a few initial contacts but we’ve been mildly surprised by the level of interest by a couple of the grocers we talked to.  Plus, we talked to the plaza owners and they are busy marketing the site to grocers on their own as well.  That would seem to suggest that some of the right discussions are occuring and hopefully one of these leads will take the next step.

If you have any other leads you want us to try to chase down, please share it.

Thanks.

Recovering From Surgery...

New Downtown Kent Shop...

Here’s what Katie had to say in her own words:

“Well, at last I’ve arrived.  After years of dreams and plenty of “I should…” I finally did.  The Katie Brooke Quilt Shop if finally a reality.  And let me tell you, it’s great!!  It has taken much work from everyone in my family, even my grandauthers, Katie and Brooke (hence the name).  but everyone chipped in and helped Katie Brooke quilt shop become a reality.  I especially want to thank God for His guidance and help in answered prayer.  My husband, Ed, has been really great and has, surprisingly, many good ideas.  Well, anyway, I am looking to a long relationship will all of you quilters out there.”

I understand that the store’s grand opening was January 30th, and based on feedback I’ve heard from a couple of lifelong quilters, the store is great.

The store is advertising a Valentine’s Day, February 14th, sale on all red fabric 25% off and a St. Patricks Day sale, March 17th, with 25% off all green fabric.

Besides bringing more customers downtown, the store will also host classes.  The store has a series of classes begining in February, including:

Star Log Cabin, February 17th, from 10:30 to 4:00 p.m..
Hand Applique, February 23 and March 2nd from 6 to 9 pm.
Hand Piercing Series, this 4 part series will be taught beginning Tuesday February 20th from 1 to 4 pm., and over the next 3 Tuesdays
Feather Star Medallion Quilt, Thursday March 15th from 1 to 4 pm.
Black Squirrel Quilt, in honor of Kent’s accidental mascot, this class will be held on Saturday, March 3 from 1 to 4pm.

There will also be open sewing sessions on Wednesdays, to meet new friends and work on patterns together.

And lastly, the Thimbleberries Club started up in January.

The store owner is also working on coordinating with the KSU design school to carry accessories and items they need for their projects.

So even if you don’t quilt, tell someone who does about Kent’s newest member of the retail family:  Katie Brooke Quilt Shop!

Giant Eagle Grocery...

From: Dave Ruller
To: Council
Date: 2/12/07 1:05PM
Subject: Grocery in Kent

Good Afternoon,

Given the recent disturbing news about the closing of Giant Eagle, I wanted to let you know that I met with the senior staff this morning to brainstorm strategies to either convince the owners of Giant Eagle to change their mind, or to find another grocery to come in behind them either at their store or at the Tops building.

Gary and Mike are working on setting up meetings with the Giant Eagle owners, as well as the owners of the plaza. Our goal is to try to better understand the decision to close the Kent store, and see if there are opportunties for the city to intervene in order to get them to change their mind. In previous rental rate studies we’ve found that the University Plaza tends to be quite high so this may be part of the reason that the Giant Eagle ownership is looking to leave. As you know, this location is also an “older” style store, so it may well be that the grocery owners decided that they couldn’t compete in that location against area groceries in Stow that had premium facilities. These are the kinds of things we hope to better understand after our meeting.

Gary and Mike are also working on initiating contacts with other prospective grocery stores. I understand from the staff that at various occassions stores like Mark’s or Aldies or the Main Street Market in Solon has had interest in expanding into the Kent market so we’re going to try to reach out to them and see if we can re-energize their interest. We will also talk to Giant Eagle corporate in Pittsburgh to see if they can be encouraged to open a corporate store in Kent, rather than a franchise.

Until we know why Giant Eagle is closing, or what prospective new grocery stores are looking for, I can’t recommend an intervention strategy to Council yet, but I wanted you to know that we are going to do anything we can to fill this gap. I would also suggest that if you have any contacts, or you have any inside information, please share it with us as we try to piece this puzzle together. To be honest, the unofficial channels, e.g., friends, family, may actually prove more productive since the formal channels are being very careful in their release of information.

Gary Locke noted that as the competition has heightened among businesses, in every sector, including grocery, the store owners are much more secretive about their plans to close or open businesses. He said that in the past, companies would call the city or share information informally about the state of their business and any plans they had. Today, he said even when we call them or visit with them, they are very selective in what they reveal.

In the case of Giant Eagle one of our staff people had met with the owners as little as 3 months ago and they had told us that business was good. We’re not sure what necessarily changed in the last 3 months but obviously Saturday’s news took us by surprise given what we had last been told. To further emphasize this point, I know that Wayne has not had success trying to get the store owners to return a phone call to him.

I will keep you posted on this important issue. Just as a point of reference, the Giant Eagle store generates in the neighborhood of $30,000 in income tax receipts, so it has quality of life and economic impacts as well.

Thanks.

Dave

What Cities Do To Promote Economic Development...

Creative solutions to closing development funding shortfalls

Public financing techniques for economic development projects can take the form of direct and indirect measures to assist public-private ventures. Direct financial involvement in public-private ventures can take many forms. Indirect or non-monetary measures, while not financially involving local government in a real estate project, can nevertheless have an equal or greater impact on project financing than direct public financial participation.

The aim of direct financial involvement is not only to promote economic growth and development and to revitalize depressed areas, but also to participate in the returns of that investment beyond the normal tax revenues the project generates. To be acceptable to private investors, the public’s share of the return will in most cases be delivered after private investors have earned a return sufficient to attract their investment in the first place. The profit-sharing objective is likely to lead to a shift from outright grants to private developers to loans with the repayment schedule and interest rate depending on project performance. These provisions for participation are similar to those frequently used by conventional mortgage lenders.

Direct financial involvement includes the following examples:

use of public funds to cover non-revenue-producing elements of a private project, thus yielding higher private project investment returns (like lobbies, hallways, and other open spaces);
use of land lease rather than a land sale from a public entity to a private developer (especially where land costs are prohibitively high);
use of a public guarantee of repayment of private project loans (risk exposure can be covered with an insurance policy);
public lease of privately built and owned facilities in order to leverage additional private investment (like parking); and
pledge of project-related tax revenue to cover capital and operating costs of a project (like Tax Increment Financing or TIF).

Indirect financial involvement includes the following examples:

design changes to facilitate non-duplication of spaces within a project (shared parking, lobbies, pre-assembly areas, elevators, kitchens, and other common areas);
exchange of public land for public space (swap land value for free space);
granting certain easements, air rights, and zoning considerations as development inducements (eliminate title difficulties or provide zoning benefits);
development rights transfer (transferring development rights not only encourages development within a given location, but also relieves development pressures on other sites, notably where historic structures are located); and
site reorganization (land and/or building exchanges or swaps can be used to reorganize land ownerships, thus reducing site assembly costs).

In closing, a plethora of innovative and creative measures can be taken to solve development-finding shortfalls. The most important consideration is a willingness on the part of both the public and private sectors to try!

Ralph J. Basile, principal, Basile Baumann Prost & Associates, Inc., Annapolis, Md., has more than 30 years experience in structuring successful public-private developments nationwide. He holds degrees in economics, city planning, and law, and is a frequent guest speaker and author.

City Snow Operations in Full Force...

Good Afternoon,

In case you had any questions, or you were getting questions from your constituents, I thought it might be helpful to give you an update of the status of the city’s snow operations.

The central maintenance crews have been running at full capacity for the last 30 hours. Given the rate of snowfall yesterday, the plow trucks really never got a chance to move off of the primary streets. The crews were mobilized around the SR 43, 59 and 261 corridors and as they finished a pass they pretty much had to turn around and start all over again in order to keep the travel lanes passable.

It didn’t help that we had two water main breaks happen during the peak of the storm yesterday and we had to temporarily divert a few employees to make the necessary repairs before returning to their plow routes.

Obviously, with that much attention needed on the primary streets, the residential streets in the neighborhoods did not get much attention. Even the trucks that worked all night long had to stay focused on the main streets, so it wasn’t until this morning that the crews have been able to shift into the residential streets — and that’s where most of them will continue to work all day today and through the night.

As we continue the plowing efforts, residents should not necessarily expect bare pavement conditions, especially in the neighborhoods. The plows try to make sure we have passable travel lanes and that will likely mean driving on hard packed snow until the temperatures warm up and the salt is able to be effective. If we could get some cooperation from Mother Nature and have the sun come out, I think we’d really start to see the hard pack melt off.

We will have a few trucks continuing to go through the main streets in order to clean up the piles of snow that remain in the intersections. At some point soon we will also likely have to offload snow from downtown to another site (the city yard) as there simply is not any place to push it downtown.

We’re in good shape from an equipment and material perspective. The mechanics have done a great job keeping all the trucks operational and we have ample salt to last us through this storm and more. The operators that have completed double shifts are obviously tired, but when I saw them today at lunch they remain in high spirits.

I realize that some residents may be frustrated with the time it took to make our way into the neighborhoods but I wanted to assure you that we’ve been working around the clock to get to their streets as quickly as we can. This was one of those quiet storms that didn’t let up and has nearly our entire region shut down today. It’s been awhile since we’ve had snow like this but hopefully everybody will be patient as we continue to plow our way out today and tomorrow.

Thanks.

Dave

Retail Lessons to Learn?...

As we look around parts of Kent, it’s frustrating to see some of the old “big box” stores sitting vacant.  The property owners want to fill them.  The City wants to fill them.  Consumers want them filled.  So why aren’t they filled?  Here’s a news story from the Cinncinnati Enquirer that reviews the different ways cities around Ohio are tackling this common problem.

From eyesore to opportunity
Cities working to fill vacant ‘big-box’ stores
BY JANE PRENDERGAST | JPRENDERGAST@ENQUIRER.COM

All over the region, they sit for years – former Kmarts, Wal-Marts, Thriftways.

Once magnets for thousands of shoppers, now they’re huge, vacuous buildings. Sitting empty, they frustrate everyone around them: operators of nearby stores who miss the lost customers; developers struggling to find retailers willing to settle in a spot that’s not in the hottest market in town; and community leaders who watch their neighborhood’s appearance and reputation deteriorate.

“These big boxes – many of which are controlled by Wall Street – are going to go wherever the money is,” said Morton Schwartz, a commercial real estate agent for more than 40 years who now works for Grubb & Ellis/West Shell Commercial. “And what is left behind is second-generation space. People don’t want it.”

Dozens of “big box” stores sit empty around Greater Cincinnati. Counting the former Thriftways alone, 21 stores went vacant after the grocer’s parent company, Winn-Dixie, announced in 2004 that the stores would close.

Kroger took over about a third of the locations, but the rest remain unused.

Of four former Frank’s Nursery and Crafts stores that went out of business in 2005, three remain empty. Add to those the former Kmarts closed by the company in 2002 and 2003, the Media Plays that closed last year, the former Wal-Marts empty because the company built new.

But communities are starting to get smart. Seeing the ripple effect of an empty big box, some cities are requiring retailers to make more attractive the sites they want to leave. Others are buying the sites with city funds, hoping that having control over the locations themselves will be better than relying on absentee landlords.

In Forest Park, frustrated city leaders decided in December to spend about $800,000 to buy the former Kmart at Hamilton Avenue and Waycross Road. They hope to add nearby properties and redevelop them together, with money from a tax-increment financing district they would create.

In Florence, officials didn’t want a vacant former Wal-Mart on Houston Road after the store moved up the street to bigger, newer space. So in negotiations with the company about its new store, city officials “made it very, very clear” that the former space had to be renovated into something more appealing to other retailers, Mayor Diane Whalen said. Now, a Michaels store and a Babies R Us are about to open in that former Wal-Mart.

“Looking at other cities, we saw the vacancies,” the mayor said. “And that’s when we said to them, ‘We’re not interested in this if you’re going to let the old store sit.’ “

And in Westwood, residents are getting involved. They’re meeting with representatives of New Plan, the new owners of Western Hills Plaza, which is now home to a vacant Kroger, Media Play, Pier 1 Imports and other former stores.

They want the company to know, Westwood Civic Association President Melva Gwynn said, that there’s community support for a redeveloped strip center, something similar to what New Plan did to Brentwood Plaza in Springfield Township. The company gave that shopping area a facelift, upgraded its parking lot and recruited new tenants, including a Kroger store.

Residents also helped lobby for Metro buses to stop outside the center on Glenway Avenue instead of pulling in. That helped cut down on trash and on the congregating teenagers who were intimidating customers, Gwynn said. Sears now anchors one end, with Old Navy, Deveroes and T.J. Maxx among the other tenants.

“It gets a reputation for being unsafe, and that’s not good,” she said. “But we have a lot of faith. And people who want to invest have to know that that type of attitude is out there in the community.”

The redevelopment should help improve the area’s retail vacancy rate, which is stable at about 12 percent, according to Grubb & Ellis/West Shell Commercial. But that number has grown since 2003, when about 10 percent of the area’s retail space was vacant, according to the company’s research. The vacancy rate nationally is forecast to rise to about 7.5 percent in 2007. Greater Cincinnati has more than 48 million square feet of retail space, with another nearly 1.3 million square feet under construction.

At the same time developers and officials are pushing to make the old new again, they’re up against this: across the country this year, more than 10 million square feet of new retail space will open.

The old spaces linger for a lot of reasons, experts say. They’re too big – some near 100,000 square feet – for most stores to take over, both because retailers don’t need that much space and because they don’t want to pay the per-foot rent, Schwartz said. If they’re willing to take space anywhere other than hot new areas like around Fields-Ertel Road, he said, they’re often stuck with big chunks that need dividing, work landlords aren’t always willing to do.

In some cases, leases ensure that landlords get rent for years even if a store is vacant. That was the case with the former Office Max at Kenwood and Montgomery roads in Sycamore Township. Redevelopment efforts there took much longer because the property owner, still getting money, had less incentive to sell, said Greg Bickford, the township’s zoning administrator. On the site now: Trader Joe’s and David’s Bridal.

His township is having luck with one of its former Frank’s Nursery and Crafts locations – the one on Kenwood Road behind Kenwood Towne Centre. Work continues there now, he said, on what will become a Dewey’s Pizza, jewelry and furniture stores and a Down Lite store. The other area Frank’s, in Cheviot, is vacant.

There’s less interest in Sycamore Township’s other former Frank’s, at Montgomery Road and Interstate 275. It’s now owned by Kimco Realty, Bickford said, and though representatives have talked about putting in a restaurant and retail, he hasn’t seen any plans. Township officials hope that spot becomes a key to redeveloping the area around it.

Sportswear retailer Steve & Barry’s has helped fill some of the vacancies. It took over an empty Thriftway in Green Township last year and is working on a new store in Florence Plaza, in a former Rhodes Furniture.

There’s more good “big box” news too:

In Cold Spring: The newest and largest Furniture Fair store opened in November on Alexandria Pike, in 95,000 square feet, a former Big Kmart.

In Mason: The former Thriftway on U.S. 42, vacant since the fall of 2004, is home to a bigger Dollar General Market store, which opened last week, and a new Tuesday Morning.

In Finneytown: Cincinnati Financial Corp. bought the vacant former Kroger on Winton Road and announced plans in December to renovate it into its off-site, backup data center. The store had been empty since 2005, when Kroger moved to Brentwood Plaza.

The company paid $2.25 million for the 16-acre site, which eventually will employ up to 70 people. Officials called the sale key for their efforts to revitalize the Winton Road corridor.

But elsewhere around the region, there are people like the Bailey brothers. They run Del Fair Lock & Key in Delhi Township. And they remember the exact date their business took a turn for the worse: Sept. 27, 2004. That’s the date the Thriftway closed. The drop in customers was instantaneous. The brothers’ concerns about survival have lessened in recent months because they sought out more commercial clients.

A big new Walgreens opened last year at the edge of the shopping center, but the Baileys said the building is so big it now just hides much of the rest of the strip center, where remaining retailers continue to struggle.

“The situation here hasn’t improved,” Bailey said. “We’re still here in no-man’s land.”

A United Front...

Editorial: “They’re Looking To Eliminate Us”

No margin for error. That’s how I would characterize the high-stakes game of economic development. And why not? If you were in charge of identifying the perfect city in which to locate or expand your business, wouldn’t you be choosey? After all, it’s a decision that often involves hundreds of jobs and millions of dollars of economic infusion into the selected community.

If we want to win this game — and we do — as a community we have to be very buttoned up. We have to be strategic, creative, and most of all united in our effort to improve our “product” and the way we market it.

That’s why Lenexa is joining with other communities around the metro area this week to recognize “OneKC Week.” It is part of a regional educational campaign designed to remind us all that, no matter where we live and work, we are part of the larger KC metro area. And, to reinforce the importance of solidarity in attracting new companies and creating jobs.

Bob Ady, with Ady International in Chicago and often considered the founding father of the site selection industry, spoke here recently. His comments served as a wake-up call for “OneKC” thinking. Among his comments:

“When site location consultants visit a city, we are looking for reasons to eliminate you!”

And what are those reasons? One of the primary reasons is not presenting a united front. Ady acknowledged that we have a unique situation in that our metro area includes many communities, 18 counties, and two states. But, he said, we have to ignore those boundaries when working with site location decision-makers. If there’s any hint of division, we will be eliminated. What will keep us in the game and get us to the next round is being able to demonstrate that we are working seamlessly across government boundaries to come up with creative solutions to siting and financial challenges. Which means we must think and act as one.

Another key reason for elimination: not presenting a compelling “product.” We don’t normally think of our city as a product, but it is. While every project is different, site selection consultants generally are looking for exciting, dynamic metro areas that offer economic vitality, a quality workforce, and a diversity of lifestyles and attractions. Seldom does a single community in our metro area have everything they are looking for. But, together we have it all.

The product we must package and market effectively is the KC region, not Lenexa, or Overland Park, or Shawnee individually. Eventually, if we pass muster as a metro area, we will earn the opportunity to begin talking to decision-makers about the merits of locating in specific communities, but first we must sell them on OneKC!

Thinking and acting as one has never been more important, because competition for new companies and jobs is intense. We are up against other communities (Dallas, Denver, San Diego, etc.) that also have very appealing products and savvy marketers that are pulling out all the stops to win this high-stakes game.

The only way to win this game is to continually strengthen our product and the way we market it. And the only way to do that is to work together. If we do, we will make it impossible for them to eliminate us. And we will make it possible for KC and individual communities like ours to have a brighter economic future.

One reason this is so critical is because, in the world of economic development, we only get once chance to make a first impression and there is no second place. If our product doesn’t appeal to site consultants, we will be eliminated. Or, if one of the components of our product is appealing (let’s say, in our case, one community) but others are not, we will be eliminated. We will only get one look from people thinking about moving or investing here, so we better make them think: “one KC, one great town.”


That same message has a lot of relevance to us here in Kent.  One Kent, One great city.

Another Way to Get Grocery...

With the announcement of the closing of the Kent Giant Eagle and the old Tops store sitting vacant, I’m sure a lot of people are asking what is the city doing to fill these stores back up.  I can tell you this:  we’ve talked to grocers around the region (including the Mustard Seed which seems like a natural fit for Kent), we’ve reached out to grocers outside of the region (see the blog post from September 7, 2006), but like the owners of the Kent Giant Eagle said in the newspaper article “the store was unable to reach and maintain the sales volumes necessary to operate profitably” — and that’s the same thing we hear from the people we try to sell the Kent locations to.  The bottom line is – if not enough of us who live in Kent, shop at Kent stores, they can’t survive.

Now, I’d actually argue (and I did in my Sept. posting) that it’s not as much about the demand in Kent — after all, everybody that lives in Kent buys groceries, but I think the Kent grocery stores were not up to the standards of the stores right around us — which means most of us were willing to shop in Stow that had first rate, top of the line stores.

So here’s the deal, the city doesn’t own the land or the building but we certainly try to help the businesses stay in business and we help the owners market their sites as much as we can.  Interestingly, I recently ran across an article about some other cities that have taken grocery matters into their own hands.  I’m not advocating here, I’m just sharing.


Published January 28, 2007

Advice from those who know:
Three Iowans who run small-town groceries offer lessons from personal experience

“Do a lot of research and be sure to nail things down before you start. Otherwise, it can be an unpleasant surprise when you have to pay your bills.”
- Larry Raper, Fontanelle businessman involved with creating a community grocery store.

“Just do what you do right. And know what your customer wants.”
- Lyndon Johnson, owner of Hometown Foods, which has stores in State Center, Conrad, Hubbard and Gladbrook.

“Be willing to work. Just like any business, you’ll be successful if you’re willing to put in the hours. And don’t look for a huge return right away. Look at it as a long-term investment.”
- Ed Eden, owner of L.T.’s Fine Grocery in Lone Tree.

Small towns struggle to keep grocery stores

Many doors close, but some Iowa communities form co-ops, sell shares or buy space for proprietors.

By PATT JOHNSON
REGISTER BUSINESS WRITER


State Center, Ia. – The new grocery store that opened last week in this Marshall County town of 1,300 people represented more than a place to buy bread, milk and a pound of ground beef.

The debut of Hometown Foods on Main Street symbolized an opportunity for growth. And it showed a sense of community spirit.

“Everybody in town got to a point where we knew if we left it to market forces, we wouldn’t have a store,” said Jeff Merrill, who owns Remarkable Rose Floral and Gift store in State Center.

So the city’s economic development group raised $800,000 in no- and low-interest loans to construct a building downtown. They found Conrad grocer Lyndon Johnson, who was willing to lease the space and provide the town with a store that includes fresh meats, produce and other goods.

Unable to attract established supermarket chains, small Iowa communities are finding creative ways to revive the town grocery store. Anita opened a store late last year and Fontanelle last spring. Hubbard was able to reopen its shuttered grocery in 2005.

Nationally, there are about 48,000 grocery stores and supermarkets, according to the Food Marketing Institute. In Iowa that number ranges between 575 and 600, said Jerry Fleagle, president of the Iowa Grocery Industry Association. That pales in comparison to the 1,920 stores Iowa had in 1976 and 911 in 2000, according to research from Iowa State University Extension.

“These stores in small towns serve more than just the dietary needs of the community,” said Terry Besser, a professor in the sociology department at Iowa State. “They are a source of community pride.”

Communities are finding creative ways to keep their local food stores. Mount Ayr, Fontanelle and Anita created grocery co-ops by selling shares to residents, the proceeds of which built and operate the stores. In towns like State Center and Hubbard, economic development groups and town officials financed construction of a store and found someone to own and operate the businesses.

So far, the honeymoon in State Center is splendid.

“The store is modest by city standards, but it’s the best we’ve ever had,” Merrill said.

State Center City Councilman Harlan Quick sees the new grocery store as a catalyst for other development in the “underutilized” downtown area, where several storefronts sit empty.

“The new store provides a service to the people who live here and makes the town more attractive to new residents,” Quick said. “There are skeptics who think the time has passed for small-town grocery stores, and the reality is that Fareway and Hy-Vee will not come to a town this size. My own thought is that the supercenters and the sheer size of those stores reduces convenience.”

Whether small-town grocers can survive depends on the community, Fleagle said.

“It’s a value proposition for most consumers, which includes both time and money,” he said.

For example, farmers who have a lot of time on their hands at this time of year may be more willing to make a big shopping trip to larger cities where they believe they can find less expensive groceries, Fleagle said. During their busy spring and summer seasons when time is of real value, they may shop at the small grocery store in town, he said.

ISU’s Besser said statistics show that towns with a population of 750 or 1,000 have a better chance of maintaining a local supermarket.

“For the smaller communities, it’s a real challenge,” she said.

Ed Eden said he faces competition daily at his grocery store in Lone Tree, a town of 1,100 south of Iowa City. He bought the store in 1999 and began expanding inventory to draw in customers. He added gasoline pumps later that year, which now account for about 30 percent of his total sales.

“My biggest group of shoppers are the 25- to 50-year-old crowd,” he said. “It’s a convenience thing for them. The majority come in and spend $10 to $15 each time, but they come in everyday.”

He sees L.T.’s Fine Grocery contributing in other ways.

“The town could do without a grocery store. It would be an inconvenience. But we have nine people working here and we don’t have many jobs in town,” he said.

Lyndon Johnson said he was willing to take a chance on State Center because he’d had success with grocery stores he owns in Conrad, Hubbard and Gladbrook and two neighborhood stores in Waterloo.

State Center was eager for a grocery store after the town’s only food shop closed in 2002. The town and its Community Development Association approached several established grocery companies about opening shop in State Center. None was interested, Merrill said.

The small building needed to be expanded to fit the needs of the town, Johnson said. So the community built a 7,700-square-foot building, more than three times the size of the old store.

Johnson had advised State Center officials that the best location for a store was near the town’s post office. In communities with no doorstep delivery, folks come downtown for their mail. Also, for groceries, he said.

His Hometown Foods offers a wide selection of products. Service includes hauling grocery bags to customers’ cars and home delivery. In addition, the stores offer yearly scholarships to area youths, Johnson said.

“The biggest challenge for us is getting our vendors to treat us like they do Hy-Vee and Wal-Mart,” Johnson said. “We sometimes have servicing and pricing issues.”

He has been able to offer what he considers competitive pricing by being able to buy for multiple stores. The single-shop owner can’t realize those savings, he said.

Getting townspeople to change their habits by buying locally has been the challenge in Fontanelle, which opened Nodaway Valley Market in April. The town of 700, about 55 miles southwest of Des Moines, sold shares at $250 each to raise money to build and operate the community grocery after being without a market for eight years.

“We’ve only been open nine months and it takes a while to figure out what the community buys and wants,” said Larry Raper, a Fontanelle businessman who help spearhead the town’s new grocery store.

One of the store’s biggest successes has been the liquor department, which has a broad product selection and is one of the few places in Adair County to buy liquor, he said.

Fontanelle is hoping the store will spur more businesses to locate downtown.

“We’re constantly looking for new business,” Raper said. “On average it takes three to five years before a town will realize any significant changes from a new business like the grocery.”

Way TOO COOL Tech...

Watch the New Technology in Use and then read about it.  (there’s a commercial that pops up first, then you’ll see the video clip)


Can’t Touch This

Working all but alone from his hardware-strewn office, Jeff Han is about to change the face of computing. Not even the big boys are likely to catch him.

From: Issue 112 | February 2007 | Page 86 | By: Adam L. Penenberg

Jefferson Han, a pale, bespectacled engineer dressed in Manhattan black, faced the thousand or so attendees on the first day of TED 2006, the annual technology, entertainment, and design conference in Monterey, California. The 30-year-old was little more than a curiosity at the confab, where, as its ad copy goes, “the world’s leading thinkers and doers gather to find inspiration.” And on that day, the thinkers and doers included Google gazillionaires Sergey Brin and Larry Page, e-tail amazon Jeff Bezos, and Bill Joy, who helped code Sun Microsystems from scratch. Titans of technology. It was enough to make anyone feel a bit small.

Then Han began his presentation. His fingertips splayed, he placed them on the cobalt blue 36-inch-wide display before him and traced playful, wavy lines that were projected onto a giant screen at his back. He conjured up a lava lamp and sculpted floating blobs that changed color and shape based on how hard he pressed. (“Google should have something like this in their lobby,” he joked.) With the crowd beginning to stir, he called up some vacation photos, manipulating them on the monitor as if they were actual prints on a tabletop. He expanded and shrank each image by pulling his two index fingers apart or bringing them together. A few oohs and aahs bubbled up from the floor.

Suppressing a smile, Han told the assembled brain trust that he rejects the idea that “we are going to introduce a whole new generation of people to computing with the standard keyboard, mouse, and Windows pointer interface.” Scattering and collecting photos like so many playing cards, he added, “This is really the way we should be interacting with the machines.” Applause rippled through the room. Someone whistled. Han began to feel a little bigger.

But he was far from finished. Han pulled up a two-dimensional keyboard that floated slowly across the screen. “There is no reason in this day and age that we should be conforming to a physical device,” he said. “These interfaces should start conforming to us.” He tapped the screen to produce dozens of fuzzy white balls, which bounced around a playing field he defined with a wave of the hand. A flick of a finger pulled down a mountainous landscape derived from satellite data, and Han began flying through it, using his fingertips to swoop down from a global perspective to a continental one, until finally he was zipping through narrow slot canyons like someone on an Xbox. He rotated his hands like a clock’s, tilting the entire field of view on its axis–an F16 in a barrel roll. He ended his nine-minute presentation by drawing a puppet, which he made dance with two fingers.

He basked in the rock-star applause. This is the best kind of affirmation, he thought. The moment you live for.

Six months later, after TED posted the video on its Web site, the blogosphere got wind of Han’s presentation. Word spread virally through thousands of bloggers, who either posted the video on their sites or pointed to it on YouTube, where it was downloaded a quarter of a million times. “Uaaaaaaaaaaaaaahhhhhhhhhhwwwwwwwwwwwllllllllll I want one!!!” whined one YouTuber. “Just tell me where to buy one,” said another. “Holy s–t. This is the future,” cried a third. Han’s presentation became one of YouTube’s most popular tech videos of all time.

In this Googly age, it only takes a random genius or two to conceive of a technology so powerful that it can plow under the landscape and remake it in its own image. People are already betting that Jeff Han is one of them. (For an exclusive look at a new demo video, see Related Content at right.)

For as long as he can remember, Han, a research scientist working out of New York University’s Courant Institute, has been fascinated by technology. He even doodles in right angles, rectangles, and squares–hieroglyphs that look almost like circuitry, a schematic of his unconscious. The son of middle-class Korean immigrants who emigrated to America in the 1970s to take over a Jewish deli in Queens, Han began taking apart the family TV, VCR, “anything that was blinking,” at the age of 5 (he still has a nasty scar courtesy of a hot soldering iron his little sister knocked onto his foot). His father wasn’t always happy about the houseful of half-reassembled appliances, but encouraged his son’s technolust nevertheless, and even made him memorize his multiplication tables before he enrolled in kindergarten. At summer camp, Jeff hot-wired golf carts for nocturnal joy rides and fixed fellow campers’ busted Walkmen in exchange for soda pop. He studied violin “like any good Asian kid.” He was 12 when he built his first laser.

His parents scrimped and saved to send him to the Dalton School, an elite private high school on Manhattan’s Upper East Side, then Cornell University, where he studied electrical engineering and computer science. Han skipped out on his senior year without graduating to join a startup that bought a videoconferencing technology he developed while a student. A decade later, he’s poised to change the face of computing.

Until now, the touch screen has been limited to the uninspiring sort found at an ATM or an airport ticket kiosk–basically screens with electronic buttons that recognize one finger at a time. Han’s touch display, by contrast, redefines the way commands are given to a computer: It uses both movement and pressure–from multiple inputs, whether 2 fingers or 20–to convey information to the silicon brain under the display. Already, industries and companies as diverse as defense contractor Lockheed Martin, CBS News, Pixar, and unnameable government intelligence agencies have approached Han to get hold of his invention. And, no surprise, he has formed a startup company to market it, Perceptive Pixel.

“Touch is one of the most intuitive things in the world,” Han says. “Instead of being one step removed, like you are with a mouse and keyboard, you have direct manipulation. It’s a completely natural reaction–to see an object and want to touch it.”

On a recent Tuesday afternoon, Han gives me a private demonstration at NYU. The 36-inch-wide drafting table he used at TED has since evolved into a giant screen: two 8-foot-by-3-foot panels. I notice the screen is not only smudge resistant but durable–or as Han says, “peanut butter–proof,” a phrase he didn’t invent but liked enough to co-opt.

In this Googly age, it only takes a random genius to conceive a technology so powerful that it plows under the landscape and remakes it in its own image.

Han teaches me the one pattern I need to know–a circular motion akin to a proofreader’s delete symbol, which brings up a pie-chart menu of applications. I poke at it, and suddenly I’m inside the mapping software, overlooking an arid mountain range. Spread two fingers apart, and I’m zooming through canyons. Push them together, and I’m skying thousands of feet above. I’m not just looking at three-dimensional terrain, I’m living in it: I’m wherever I want to be, instantly, in any scale, hurdling whole ridgelines with a single gesture, or free-falling down to any rooftop in any city on earth. This ain’t no MapQuest. Han’s machine is faster–much faster–because there’s nothing between me and the data: no mouse, no cursor, no pull-down windows. It’s seamless, immediate, ridiculously easy. No manual required.

An NYU colleague pokes his head in (Han greets him like he does most everyone: “Dude!”) and tells him that a producer from the Ellen DeGeneres Show called. Han is amused but declines the invitation to appear. Ever since he became a Web phenomenon, he has been receiving all sorts of offers, come-ons, lecture requests. An official from SPAWAR, a subdivision of the Navy focused on space and naval warfare planning, queried Han about collaborating. A producer from CBS News wondered how to make use of Han’s touch screen for special events like election coverage. A dance deejay asked if he had a product to spin music at clubs. A teenager asked how he could become a computer engineer too (answer: “Study math”).

Meanwhile, I get back to playing with Han’s Über tech. “Jesus,” I say under my breath. “He’s gonna get rich.”

Han overhears me and laughs. The thought has occurred to him.

Before reinventing the touch screen, Han was just another dotcom refugee at a crossroads. BoxTop Interactive, an e-services firm he worked for in Los Angeles, had just flamed out with everything else (he calls the whole boom-bust era a “collusion of bulls–t”). With his father ill, and ready for a change himself, Han returned to New York.

He knew some professors at NYU and, despite his aborted stay at Cornell, landed a research position at the Courant Institute, where he has been for the past four years. The scope of the projects he’s involved in is a testament to the sheer wattage of his brain. Two are funded by DARPA, the Defense Advanced Research Projects Agency under the Department of Defense, including one involving visual odometry: Modeling his work on the brain of a honeybee, Han has been looking for ways to make a computer know where it has been and where it is going–part of an attempt to build a flying camera that would be able to find its way over long distances. Han has also made it to the second round of a DARPA project to create an autonomous robot vehicle that can traverse terrain by learning from its own experiences. The goal: to perfect an unmanned ground combat vehicle that could operate over rough trails, in jungles or desert sand, or weave through heavy traffic as if it had a skilled driver behind the wheel. One non-DARPA project involves reflectometry. Han came up with a way to scan materials so they are faithfully reproduced digitally. The process typically requires shining a light on a piece of fabric, a flag, say, from dozens of different angles, and scanning each one into a computer–a time-consuming proposition. But Han developed an elegant shortcut: He built a kaleidoscope with three mirrors that reflect one another. Once a swatch of cloth is inserted, the scope yields 22 reflections mimicking different angles of light. When data from each reflection are scanned, the result is a flag that can be formed into any shape–one that looks like it’s waving in the breeze, with each ripple and each slight shift in light rendered to a photographic exactitude. The whole process takes a fraction of the time Hollywood’s best computer animators would need.

Han brought a similarly pragmatic do-it-yourself attitude to his study of touch-screen technology. When he began looking into the idea, he discovered that a few researchers were working on interactive walls and tabletops, and there were a number of art pieces. But that was about it. The concept hadn’t advanced much from where it was in the 1980s, when Bill Buxton, now a Microsoft researcher, was experimenting with touch-screen synthesizers. “Most of it was designed with toys in mind,” Han says, “something you project on-screen like Whack-a-Mole with hand gestures. But they weren’t asking themselves what purpose it served. I wanted to create something useful.”

Inspiration came in the form of an ordinary glass of water. Han noticed when he looked down on the water that light reflected differently in areas where his hand contacted the glass. He remembered that in fiber optics, light bounces on the inside of the cable until it emerges from the other end miles away. If the surface was made of glass, and the light was interrupted by, say, a finger, the light wouldn’t bounce anymore, it would diffuse–some of it would bleed into the finger, some would shoot straight down, which was happening with his water glass. Physicists call the principle “frustrated total internal reflection” (it sounds like something your therapist might say).

Han decided to put these errant light beams to work. It took him just a few hours to come up with a prototype. “You have to have skills to build,” he says. “You can’t be strictly theoretical. I felt fortunate. I walked into a lab with crude materials and walked out with a usable model.”

He did it by retrofitting a piece of clear acrylic and attaching LEDs to the side, which provided the light source. To the back, he mounted an infrared camera. When Han placed his fingers on the makeshift screen, some light ricocheted straight down, just as he thought it would, and the camera captured the light image pixel for pixel. The harder he pressed, the more information the camera captured. Han theorized he could design software that would measure the shape and size of each contact and assign a series of coordinates that defined it. In essence, each point of contact became a distinct region on a graph. “It’s like a thumbprint scanner, blown up in scale and encapsulating all 10 or more fingers. It converts touch to light.” It could also scale images appropriately, so if he pulled a photo apart with two fingers, the image would grow.

“People want this technology, and they want it bad,” says Douglas Edric Stanley, inventor of his own touch-screen “hypertable” and a professor of digital arts at the Aix-en-Provence School of Art in France. “One thing that excited me about Jeff Han’s system is that because of the infrared light passing horizontally through the image surface itself, it can track not only the position of your hand but also the contact pressure and potentially even the approach of your hand to the screen. These are amazing little details, and pretty much give you everything you would need to move touchable imagery away from a purely point-and-click logic.”

Han began coding software to demonstrate some of the touch screen’s capabilities, running them on a standard Microsoft Windows operating system. Meanwhile, Philip Davidson, an NYU PhD candidate, got excited about the project and quickly became its lead software developer.

The first thing the pair did was to modify NASA World Wind, a free Google Earth–type open-source mapping program. (Han figured the military would be keen on anything that works faster, since split seconds mean the difference between life and death.) Then they created the photo manipulator, which lets you upload pictures from Flickr or anywhere else on the Web (it can also make 2-D images appear as 3-D). A taxonomy tool makes it a cinch to navigate the illustrated branches of the Linnean classification system, from animals and plants down to every known species, and see on one screen how these families are structured and interrelated. (They are thinking of extending it to genealogy and an analysis of social networks.) Multidimensional graphing and charting help you visualize spreadsheet data and move them around from one point in time to another, while Shape Sketching lets you draw on-screen as easily as you can with a pencil on paper–then animate these shapes instantly. Down the road, it may be possible to draw Bart Simpson on-screen and instruct the computer in what you want him to do.

“As computers have become more powerful, computer graphics have advanced to the point where it’s possible to create photo-realistic images,” Han says. “The bottleneck wasn’t, How do we make pixels prettier? It was, How do we engage with them more?”

Today’s computers assume you are Napoleon, with your left hand tucked into your suit,” says Bill Buxton, whom Han considers to be the father of the multitouch screen. “But a lot of things are better performed with two hands. Multiple- sensor touch screens bridge the gap between the physical and virtual world.”

Mind you, this doesn’t mean touch screens will completely replace the computer mouse, QWERTY keyboard, or traditional graphic user interface (or GUI) any more than cinema made live theater disappear or television supplanted radio. Each continues to do what it does best. Your iPod or cell phone may be fine for short music videos, but you probably wouldn’t want to watch a two-hour movie on it. “These media fall into their appropriate niche and are displaced in areas where they are not the best,” Buxton says.

Han really doesn’t know how his mapping software, photo manipulator, or any of it will ultimately be used–these applications are really proofs of concept, not ends in themselves. “When unexpected uses emerge that no one ever thought of, that’s when it gets exciting and takes off,” says Don Norman, a professor at Northwestern University and author of Emotional Design. Thomas Edison, after all, believed the phonograph would lead to the paperless office; businessmen would record letters and send the waxed discs in the post. And the Internet wasn’t exactly invented to serve the masses and become the backbone to business and commerce.

In January, Han was set to ship his first screen to a branch of the military. He hasn’t taken a dime of venture capital, so his company is already in the black.

Meanwhile, wherever touch-screen technology leads, Han will face stiff competition. Microsoft has been working on its own version, TouchLight, which offers echoes of the Spielberg sci-fi flick Minority Report. GE Healthcare, which manufactures MRI machines, is using TouchLight, licensed from Eon Reality, for 3-D imaging: Surgeons can swipe their hands across the screen and interact with an MRI of a brain, peel away sections, and look inside for tumors (retail price: $50,675).

Mitsubishi is targeting a completely different market with its DiamondTouch table, a collaborative tool for business that allows a group of people to interact at the same time via touch screen. Canada-based Smart Technologies has created a nice niche selling interactive whiteboards to universities, corporations, and even to three branches of the U.S. military for briefings. Panasonic has been developing wall-size touch-screen displays, as has consulting firm Accenture, whose interactive billboards are already enticing passengers at O’Hare and JFK airports. Apple has filed for several patents in the field, and there are rumors, which the company won’t confirm, of course, that it will soon offer a touch-screen iPod.

But Han isn’t exactly worried. In January he was set to ship his first wall screen to one of the branches of the military (he won’t say which one) “and they are paying military prices–six figures,” he says. His company will also be offering consulting services and support, which will generate even more revenue, and Han says he has a lot of other deals in the pipeline. He hasn’t taken a dime of venture capital, so his company is in the black even before he has rented office space.

What’s more, with the cost of cameras and screens plummeting, it is inevitable that interactive displays will be built into walls and in stores, in schools, on subways, maybe in taxicabs. In fact, a screen could be as thin as a slice of wallpaper, yet durable enough to handle the most rambunctious user.

Not everyone is sold on Han’s idea. Ben Shneiderman, a computer science professor at the University of Maryland and a founding director of the Human-Computer Interaction Lab, calls Han a “great showman” who has “opened the door to exciting possibilities.” But he doesn’t think Han’s technology would be suitable for a large-scale consumer product, nor as useful as a mouse on a large display. If you are standing in front of the screen, Shneiderman wonders, how would people behind you be able to see what you’re doing?

One way, Han counters, is for the demonstrator to simply move his ass out of the way. Another: Use a drafting-table display, as Han did at TED, and project the image on a wall-size screen.

But criticisms like these are a million light years from Han’s mind. We’re in his cluttered and cramped office at NYU. Books line a shelf, and a skein of wires unfurls across the floor. A computer circuit board is half taken apart (he stopped losing screws long ago), and a nearby whiteboard contains blueprints and sketches of the touch screen, plus a clever trick for hacking programming code.

Han is explaining why he formed Perceptive Pixel. “I want to create an environment where I can create technology, get it into the hands of someone to market it, and move on to other technologies so I can keep innovating,” he says. “I want to be a serial entrepreneur: Incubate an idea, get it to a good state, and make that an enabler to get to the next state. It’s every researcher’s fantasy.”

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