San Luis incentives catch supermarket's interest

SAN LUIS, Ariz. - Through the approval of an extension on impact fees, a supermarket chain has its eye on the city and may decide to open up a store here.

Two years into its creation, the industrial and commercial park YEPCO has a prospective candidate for a supermarket off of Highway 95.

Two weeks ago, San Luis City Council members approved a fee extension to any business that established itself in that property so that they won’t have to pay around $30,000 in fees before they begin construction as is currently established in the impact fee norms.

This extension will be given to individual companies with the council’s approval.

“The council’s decision helps to show businesses that the city wants to work with them. Until now, the only ones to receive this extension had been housing developers,” said Agustín Tumbaga, co-owner of YEPCO, who solicited an extension from the council.

With this extension, a business can set up and begin construction without paying the impact fees and in doing so “projects move faster and the business open its doors and offers employment that much sooner,” said Tumbaga.

Tumbaga expressed his appreciation of the council members’ attitudes and said it opens the possibility that other businesses will take a look at Somerton and avoid the possibility that established businesses move away from the city or abandon their plans for new investments.

“I am concerned that this may happen. There’s a business that is talking about moving to Gadsden and I worry about that since Somerton has a small population, and Gadsden is even smaller, but this business is looking at costs, the economy and they don’t see support from the city. It’s a business that has been in Somerton for more than 15 years,” Tumbaga said.

Helping investors with impact fees “will allow them to get here sooner, with the possibility of more revenues for the city and jobs for residents,” Tumbaga said.

YEPCO industrial park on the west side of the city, has had a 20-acre lot for sale for use for small and medium-sized businesses - 1,500, 3,000 and 5,000 square feet - since last year. Since then, they have been looking for a business that is interested in setting up business in the biggest lot, three acres in size.

Upon starting “we had 13 lots reserved and three prospective ones for the biggest lot in front; currently, six are reserved and we have one potential buyer for the store,” said Tumbaga, pointing out the effect the economic crisis has on commercial and industrial lots.

The idea to provide the extension on impact fees is a measure meant to encourage investment and is in addition to other measures the city has engaged in to seek funds to bring in businesses. There will be more firms that consider establishing their business in Somerton.

The supermarket chain considering moving here is not from the region and will allow a different chain to come to the city to enrich competition and improve options for residents.