Costco effect: Retail development proposed for South State Street in Ann Arbor
Banking on increased traffic from the new Costco warehouse store, the owners of a property on South State Street north of Ellsworth plan to build two new retail buildings.
Site plans submitted to the city of Ann Arbor last week call to demolish an existing vacant building — a single-family house and garage — and construct two one-story retail buildings in two phases.
Marketing materials show the location of the proposed retail development
Photo from loopnet.com
Together, the buildings would total 8,531 square feet and would include a single-lane drive-thru to serve the front building. The 1-acre property has commercial zoning.
“We’re really close on a lease for the building with the drive-thru,” said Bob Andrus of Michigan Commercial Realty, the broker who has been marketing the property for lease.
“It’s going to be a national food franchise going in there…the other building, we aren’t sure what’s going to go in yet,” he continued.
The property owner and developer is the Schwarcz family, represented by Jim Cernuto of J.M. Willens Corp. The architect for the project is West Bloomfield-based Atelier Architect.
Andrus said the development — fueled by the opening of the new Costco warehouse store less than a half-mile away — is a significant improvement over the property’s current use.
“It’s a little old house that probably hasn’t been occupied for five or 10 years,” he said. “It just adds no value at all to the property and really hasn’t for a long time.”
He added: “No question, the Costco coming in is what generated this activity. We had some interest prior to that, but the minute Costco was mentioned the light turned on. It’s a draw.”
A new Tim Horton's is in development just south of the property on the site of the former Enzo's Sports Bar.
Additionally, on the southeast corner of the State and Ellsworth intersection, developer Howard Frehsee has been planning to build a 15,750-square-foot retail center for years, but the project - next to the new Speedway - was stalled due to the economic downturn.
The plans, which received township approval in 2010, include a 5,000-square-foot free-standing outlot building on a 5.75-acre parcel, just east of the State and Ellsworth intersection's southeast corner. Freshee told AnnArbor.com in June he still plans to move forward with the project.
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
Comments
SalineMom
Tue, Oct 2, 2012 : 1:48 a.m.
Not sure how big of a draw the Costco really is. I've heard sales are not what they anticipated, they have cut staff and cut hours since opening. Every time i'm in there, different time of the day/week, never seems very busy.
Dave
Tue, Oct 2, 2012 : 2:07 p.m.
They have not cut hours....still open the same times as every other store. You need to try going on a weekend. They also take debit cards...no fee there. Or good old cash!
babmay11
Tue, Oct 2, 2012 : 11:36 a.m.
It annoys me they don't take any credit cards except AMEX. I don't carry my checkbook around since I hardly use them anymore, and don't want another credit card, especially one that charges fees.
mtlaurel
Tue, Oct 2, 2012 : 2:35 a.m.
there are so many renters now in Ann Arbor: the bulk buying has only so much appeal when one has limited space. Households of homeowners in Ann Arbor have a large range of other high quality shopping venues. The Brighton Costco is actually easier than going to this new location: but it's not a shopping experience that I care for. Between Trader Joe's and Meijers I can't think why I'd go to Costco.
Ron Granger
Tue, Oct 2, 2012 : 12:43 a.m.
I'm betting it's a bongs n'thongs, with drive-thru.
yourdad
Mon, Oct 1, 2012 : 6:31 p.m.
I hope it is a Hooters! Culvers would be nice too, but I have a preference for hooters. Sorry for not being politically sensitive but maybe this type of business doesn't want to start a blog war by announcing their plans too early. Just please don't let it be another sub shop!
Sparty
Tue, Oct 2, 2012 : 6:11 a.m.
Hooters with a drive-thru? ROFL Culvers or Popeyes!
lindsay erin
Mon, Oct 1, 2012 : 4:29 p.m.
I work in one of the businesses near Costco. I am always excited to hear about development in the area (despite the horrendous traffic it causes), but I'd love to see an affordable, healthy food option rather than another national chain. A general overview of what's within a 1-to-2-mile drive from my office: Wendy's, McDonald's, Panera, Potbelly, Moe's, Qdoba, Macaroni Grill, (...).
JanS
Wed, Oct 3, 2012 : 3:21 a.m.
Zingerman's Bakehouse is tucked back in the industrial park on Airport Blvd, they have 2 soup options every day in addition to sandwiches. The Whole Foods that is across the parking lot from Potbelly has a fabulous healthy food bar. Next to Moe's is Zamaan Cafe, a middle eastern restaurant that has reasonably health food options. So there are some good food options nearby.
lindsay erin
Mon, Oct 1, 2012 : 5:52 p.m.
I guess I should have mentioned that I also have a food allergy, which limits the options even more for me. Perhaps I was spoiled when I worked downtown & could walk 5 minutes to the Food Co-op/Sparrow Market!
Ron Granger
Mon, Oct 1, 2012 : 5:21 p.m.
Agree on healthy food instead of a junkfood chain. But I disagree with your 1-2 mile characterization. There are a some decent options at stone school & ellsworth, platt & ellsworth, and packard & platt.
John of Saline
Mon, Oct 1, 2012 : 4:51 p.m.
Lots of the places have salads and reasonable chicken sandwiches.
mat
Mon, Oct 1, 2012 : 3:19 p.m.
Jimmy johns
Dave
Mon, Oct 1, 2012 : 2:14 p.m.
Also, can we please get rid of the flower shop that looks like it should be condemned?
John of Saline
Mon, Oct 1, 2012 : 4:50 p.m.
I am reminded that I grew up near Detroit when I drive by apparently abandoned places like that and wonder why someone hasn't torched them yet.
Brad
Mon, Oct 1, 2012 : 2:55 p.m.
Yeah, the area is so picturesque other than that.
Dave
Mon, Oct 1, 2012 : 2:12 p.m.
I'd love to see a Jersey Mike's or Culver's there. BUT we need to address the traffic. 1. You can't turn left from Ellsworth onto State without waiting for a few lights. 2. People turn left, crossing the double yellow line into Speedway, creating a major hazard...or people trying to turn left out of Speedway. Just wait until Timmy Hohos opens up. 3. The new light near the airport for Costco is a joke. They have tried to program that thing for months now. It still gives green lights when no car is there causing massive backups. 4. The new lack of a turn from Airport onto State St, where you need to cross the street and turn around isn't working. I watched a minivan almost t-bone a guy because the minivan made the newly illegal left onto State. Just build the island up and block this off. Get rid of the lights. Build up the island all the way to 94. WAY too many people want to turn into the UofM sleep clinic to make a u turn or the Uhaul. Very dangerous. Force people to make the Michigan left, and we'll all be much happier. 5. The lights are out of control at State and Ellsworth. It's faster to cut through the light industrial park, wait at the light at State and then drive by Costco and continue on Ellsworth. Shouldn't be that way.
Alex Swary
Mon, Oct 1, 2012 : 4:43 p.m.
Hear, hear! I agree with #s 3 and 5 especially. That light turns red WAY too much if you are driving down Ellsworth. There is not that much traffic coming out of Costco to justify it turning red so much for Ellsworth traffic. I never turn right at the State/Ellsworth light anymore, I just drive around Costco and turn right onto Ellsworth there.
aamom
Mon, Oct 1, 2012 : 2:54 p.m.
Your points about the traffic are all spot on.
Jim Walker
Mon, Oct 1, 2012 : 2:02 p.m.
New devleopment and new businesses are great but what about the traffic? Ellsworth and State Street are both an absolute MESS! It's is total gridlock at 5pm. Our leaders should be forced to do some planning and widen Ellsworth to FOUR lanes before any more new construction takes place. Or impose a condition on any new business that they must take part in a fund to improve Ellsworth. Eventually, the traffc is going to get so horrific, that no one will venture down there to patronize any businesses.
R.B.
Mon, Oct 1, 2012 : 11:38 p.m.
I agree, driving over there is an absolute NIGHTMARE!
MK
Mon, Oct 1, 2012 : 1:38 p.m.
Jimmy John's please!!!!
Hot Sam
Mon, Oct 1, 2012 : 7:42 p.m.
With a drive through :-)
conairaa
Mon, Oct 1, 2012 : 1:23 p.m.
I wish they'd reconsider the plan to put a roundabout at the intersection of State and Ellsworth. If all this development does happen, I think traffic will be a nightmare without traffic lights.
Barb's Mom
Tue, Oct 2, 2012 : 11:08 p.m.
Ellsworth East of State was 4 lanes at one time, then they had to put in bike lanes and that took 1 lane away and nobody uses the bike lanes.
Ann English
Mon, Oct 1, 2012 : 11:56 p.m.
Tiny Artist, Right you are about our not seeing roundabouts here like the British do; the roundabout the Beatles sing about in "Penny Lane" is so big, there's a restaurant sitting on it!
Ann English
Mon, Oct 1, 2012 : 11:53 p.m.
The three roundabouts on Lee Road just north of Costco in Brighton all have three or four lanes. The three roundabouts on North Maple Road have only two; up there, if you don't use that part of Lee regularly, it's easy to get into the wrong lane for where you want to go. A roundabout at State and Ellsworth won't have four lanes, for there isn't a road running parallel to either one nearby, like Whitmore Lake Road runs parallel to US-23.
aamom
Mon, Oct 1, 2012 : 2:52 p.m.
The problem isn't really roundabout or not, the problem is that Ellsworth needs to be widened east of State because it backs up through that intersection during rush hour. If the traffic can't continue out of the roundabout onto Ellsworth, it will just bottleneck what could be a perfectly good roundabout.
TinyArtist
Mon, Oct 1, 2012 : 2:45 p.m.
Roundabouts are a British term for traffic circles, the likes of which we have not seen in this area. Our Yank knock-offs are confusing "pick your trajectory" mazes that discourage even the best drivers (modest throat clearing here) from getting anywhere near them.
demistify
Mon, Oct 1, 2012 : 2:26 p.m.
There is a plethora of roundabouts on Lee Rd. near the Costco below Brighton. That harrowing maze is a perfect cure for roundabout rooters.
John of Saline
Mon, Oct 1, 2012 : 1:47 p.m.
"Big Ben." "Parliament." "Big Ben." "Parliament." "Big Ben."
Chris
Mon, Oct 1, 2012 : 1:37 p.m.
Roundabouts are much better than traffic lights. Hopefully its use at a busy intersection like this one will help educate drivers and planners on this fact.
Rick Stevens
Mon, Oct 1, 2012 : 1:35 p.m.
It already is a nightmare. And your solution? A roundabout will keep traffic moving. All we have now is a huge creator of backed up traffic and long waits.
xmo
Mon, Oct 1, 2012 : 1:19 p.m.
Now look what happens " "No question, the Costco coming in is what generated this activity." Because of Costco, we have more urban sprawl, creating jobs, generating tax revenue and making peoples lives better! Its so sad!
tdw
Mon, Oct 1, 2012 : 4:15 p.m.
xmo...I'm beginning to think I'm the only one who gets your sarcasm when you make comments like that
MRunner73
Mon, Oct 1, 2012 : 2:09 p.m.
...came down the pike, like 150 years ago...
MRunner73
Mon, Oct 1, 2012 : 2:08 p.m.
Urban sprawl started long before this project came down the like, like 150 years ago. Urban sprawl is also global. I am all for it.
Chris
Mon, Oct 1, 2012 : 1:37 p.m.
And what should we do? All stay home and tend our gardens?
Veracity
Mon, Oct 1, 2012 : 12:35 p.m.
Though replacing unused and unproductive land with successful businesses is desirable speculative development such as is being proposed should raise some concern. What demand will be fulfilled by the new construction? Costco has a unique and successful business design that fits well between the two Meijer stores at east and west ends of Ann Arbor along Ellsworth Road. Briarwood lies just north of the planned development. The future for this development would be more encouraging if the development were originally motivated by successful enterprises wishing to expand into the Ann Arbor market like Costco. Building while still hunting for some businesses to lease the properties is less promising. Hopefully these buildings will eventually house successful retail operations which can provide TIF benefits to local government and economic value for the community. Otherwise, only the developers who get their fees off the top of arranged financing will prove to be winners.
Veracity
Tue, Oct 2, 2012 : 1 a.m.
"We're really close on a lease for the building with the drive-thru," said Bob Andrus. No done deals, not even 50%, so "speculation" is a correct description. Tell me, 5c0++ H4d13y and TinyArtist, what commercial enterprises or retail stores are in dire need at that location?
TinyArtist
Mon, Oct 1, 2012 : 2:41 p.m.
Yes, he read the article. One unknown food franchise, and one "something else", currently unknown, makes for, at best, 50% planned-ahead occupancy.
5c0++ H4d13y
Mon, Oct 1, 2012 : 2:23 p.m.
Did you read the article? Sounds like they already have a retailer lined up.
Ron Granger
Mon, Oct 1, 2012 : 12:29 p.m.
The a2 city council need to pull their heads out and deal with the pedestrian and bike safety issues in that area, especially the death-zone that is the I-94 state street overpass. There are also a lot of employees working around state and eisenhower who need better access to work via bike and foot.
yourdad
Mon, Oct 1, 2012 : 6:39 p.m.
You seem to be missing their whole plan. They don't feel that city residence who ride and walk should be afforded the opportunity to see the reality that exists outside of the 29 square miles of utopia that they reign over. #leavemyblindersalone
Basic Bob
Mon, Oct 1, 2012 : 4:04 p.m.
They need a bicycle bridge between Briarwood and Lohr Rd to connect to the new asphalt path to Saline. Why is there no bus down State? The bus is just too icky for folks in this part of the township. But they will widen it for the SUV route to Costco.
Catherine Bosma
Mon, Oct 1, 2012 : 2:29 p.m.
I'm not sure if Pittsfield Township has something to do with it, but the AATA doesn't go past Ellsworth. I would love to take the bus to work, especially since the traffic is getting so bad at rush hour, but I'd have to get off the bus at Ellsworth and huff it down that horrible two lane State Street death trap across from the Ann Arbor Airport. Ugh.
a2roots
Mon, Oct 1, 2012 : 1:42 p.m.
Just what we need ...more bike lanes that will go underutilized. Plenty of routes available that are less dangerous but not as direct. Too bad. State and Eisenhower area has bike lanes or paths in all directions. Lets not forget how S. Main has been altered to accommodate bike lanes which by the way seem to never be used.
Rick Stevens
Mon, Oct 1, 2012 : 1:33 p.m.
Absolutely - it's like a Berlin Wall for anyone trying to go north to A2 (or south); at the mercy of crazy drivers on a stone strewn, potholed stretch. Ditto for Ann Arbor - Saline. It isn't that hard to figure out and fix.
aabikes
Mon, Oct 1, 2012 : 12:32 p.m.
Completely agree!
LaMusica
Mon, Oct 1, 2012 : 12:27 p.m.
I wonder what the food chain is...there is a McDonald's just down the road so I don't think it would be one of those. Hmm...glad they are building the area up.
tdw
Mon, Oct 1, 2012 : 4:08 p.m.
If the McDonald's is less than a mile away a McDonald's can't be put in unless it is owned by the same person ( I believe ) per franchise agreements
sellers
Mon, Oct 1, 2012 : 11:59 a.m.
Too bad they are not making it multi-story to coincide with the plan that Pittsfield Twp has for the opposing side (http://www.pittsfieldtwp.org/mp-focus-development-areas-69-82.pdf). That may create a nice little nook area for the region and help to prevent a traffic nightmare like that seen on Telegraph Road, Ford Road, Hall Road, and similar roads in Detroit.
JimmyD
Mon, Oct 1, 2012 : 11:42 a.m.
More jobs, shopping choices and fewer old empty buildings. I hope that the design guidelines create better sight lines and landscaping through this previously neglected area too.
Robo
Mon, Oct 1, 2012 : 12:04 p.m.
Agreed, that strip of State St is depressing.