Elk Grove City Council To Consider $175k Incentive for Restaurant to Occupy Former Brewery Site

When the Elk Grove City Council meets this coming Wednesday night, they will be asked to consider an economic development incentive of ...


When the Elk Grove City Council meets this coming Wednesday night, they will be asked to consider an economic development incentive of $175,000 for a new restaurant.

According to a report by the city's Economic Development Department, the request is being sought by Working Class Heroes (WCH), LLC, to help in the opening costs of a proposed new restaurant in the Old Town Elk Grove building that formerly housed the shuttered Elk Grove Brewery. WCH is proposing the opening of a new establishment dubbed Broderick General Store.

The proposed restaurant is described in the report as a "full-service, family friendly yet edgy restaurant ...featuring locally sourced, high quality ingredients." This location would be the second location for WCH which also operates the Broderick Roadhouse in West Sacramento.

If the approved, the incentives would be used to help with furnishings, equipment and promotional efforts and leave the city's Economic Development Fund with a balance of $275,144.

Wednesday's meeting starts at 6 p.m.


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25 comments

Anonymous said...

The Brewery didn't make it, and the restaurant that went in after they closed didn't make it either.

So what assurances do the city of Elk Grove's taxpayers have that this restaurant won’t fall to the same fate?

$175K is a lot of money that a lot new business owners would love to have. So what about all of the other business owners who could use a shot in arm with some money?

Additionally, why do we cater to new businesses and not reward existing businesses with some marketing and advertising monies, not to mention offsetting their operating costs?

Just doesn't seem fair . . .

Mr. Haney said...

Great, does this mean the Broderick Boys will bring their show to Elk Grove?

Beyond this obvious punchline, it is quite unfortunate that this city considers this as real economic development. I might suggest Mr. Starbuck and our city council set their sites a bit higher when spending taxpayers dollars.

Anonymous said...

The Brewery did make it - the owners just decided to move out of town. The restaurant that followed had a pretty bad business model. Bad food and bad service. At least this new prospect has some successes under their belts. I'm optimistic. I think it would be a great addition to Old Town.

And by the way - I believe the City's program DOES provide funds to help existing businesses. I'm pretty sure I remember it referred to "creating or retaining" jobs when I read it.

If they meet the criteria too, they can get money too. Seems perfectly fair to me.

Mr. Haney said...

Sure, we will retain or create minimum wage jobs - way to go! This is yet another example of our race to the bottom!

Anonymous said...

Why in the hell are my tax dollars subsidizing a privately run business. If this company wants to make a go of it in EG...then go ahead and try. I am not in favor of spending my tax dollars...YES; they are my tax dollars no matter what pot the city puts them in...On a private restaurant. How about if the city gets 15% of the profits...if and when they make a profit. This is just wrong.... where has the American spirit of entrepreneuralship gone..now everyone just wants a handout from the government. I would be ashamed to ask for such a deal. Seems I will not be trying out this latest restaurant...I rather go to a small time, mom/pop owned joint who works hard for their money and appreciates every penny they earn...not standing at the trough of the local government entity...This town is getting out of control with too many handout and favors to everyone who simply ASKS for special treatment.

someone who used to care said...

Amen, brother!


Each member of the council that votes for giving $$ to private business should have to donate 5% of the city donation from their own pocket so that they feel the squeeze we taxpayers feel.

This council thinks money grows on trees. Their spending and pie in the sky plans will bankrupt this city.

Probation Pete said...

I'm looking to put in a "porn shop" in old town. Something our town is lacking. I'm sure it will be successful.

I'll be at the next council meeting asking for "just" $100,000 to help me get my business off the ground.

My business blueprint will include an "ADULT" (if you know what I mean)soccer area with all the latest adult soccer items.

This is a can't miss deal for the city....a new business, in old town, sports related, and the first of it's kind shop for EG!

- See ya all at council!

Anonymous said...

Why do some of you feel the need to bitch and moan and groan every time the city council tries to do something good for our city! Geez!

Anonymous said...

.....and what exactly what would that be? I don't think putting $50,000 into one business for advertising is best for our city. Think Happy Garden, the Brickyard and some of the other Old Town busineses might not like their share of that?

Mr. Haney said...

To anon 10:58; the last time I checked that is a right enshrined in the constitution.

Capt. Benjamin L. Willard said...

Re: 10:58 comments.

Unless I missed something, I don't recall reading a city council member advocating directly for this group to receive an incentive. A quick review of the staff report show this is a recommendation and there was no mention of any the current council members.

So this begs the question 10:58 anon; are you a council member or are you acting on their behalf. Are you privy to some information that would suggest a city council pushed this item on city staff?

Anonymous said...

I am disappointed that our EDD thinks that bringing in part-time restaurant jobs who long term viability is uncertain, equates to economic developement. This is not my idea of economic developement. My hope for ED would include manufacturing or educational opportunties. Where we in the running for the 500 jobs RC just got for a call center? This is just management of our tax dollars. This is not economic developement...is this subsidizing a priviate business. Hopefully the council will advise against such a deal.

EG veteran said...

I agree w/ anon @ 8:51.

If we are going to give away $$ to lure businesses to EG, they should be big businesses (Apple, IBM, Intel, etc.)or universities, factories, or manufacturing entities, not small private businesses. That is unfair to our existing small businesses.

A restaurant is not going to drive large economic development.
Only "big business" will drive up economic development.

- Davis and our city council is so out of touch with reality. They are just too busy tying to repay all those political donations received instead of promoting our city to big business.

Randy Starbuck has done NOTHING to help EG out of this recession. His salary is a total waste of our tax money. He needs to go.

Anonymous said...

Couldn't agree more. Selling sandwiches & tacos is NOT Economic Development no matter how delicious they are. It's like throwing money down a hole, much like the Ice Rink and at a location that has twice failed.

Mr. Starbuck didn't comne here with a good track record and I have seen nothing to indicate that has changed. He doesn't even speak a good piece...nothing but some "canned" words.

Mr. Haney said...

This things is beginning to smell a little fishy.

A bit of research shows that the Broderick restaurant opened up less than one year ago. It is not like these guys have the expertise or track record of someone like Randy Paragary or Taro Arai. These guys have been open less than a year! They are not yet a proven winner.

Furthermore, a couple of the partners in WCH have their background in, you guessed it, Elk Grove's second favorite fine dining option behind fast food joints - Food Trucks!

http://blogs.sacbee.com/dining/archives/2012/11/broderick-resta.html

Anonymous said...

Interesting how the public always wants the City to help small businesses but when they do, the only thing the public has to offer are complaints. So do you want them to help small businesses or not? If so how? If you don't think incentives are the way to go, they how about offering some constructive suggestions for once? If you think you can do it better, let's hear it!

I challenge all of you complainers to come up with at least one good, viable program idea (with little to no additional cost) that would help small businesses.

Connie Conley said...

To Anon above, at 16:49: Since you asked, and may be done a little research before you put out your challenge, you would know that citiens have come up with some very successful ideas that worked. Shop & Dine Elk Grove and the Best in Elk Grove Business Awards are two just of them.

Additionally, there are many active residents who have come up with some very good ideas, but you have to get them passed by the Elk Grove City Council in order for staff to implement them.

If the council doesn't agendize them after hearing the ideas at public comment, or at least ask for more information, they die at the mic!

Jill said...

To anon 16:49; To paraphrase the late Justice Potter Stewart on what is pornography, the same can be said about this; we all know a bad idea when we see it.

First, with all due respect, you use the plural "businesses" when discussing this scheme. This incentive will directly benefit only one business, singular. Oh sure, I suppose you could use the trickle argument that suppliers, other Old Town nail salons and bars would see more foot traffic. But is helping one solitary business receiving this incentive money really helping the hundreds of other small businesses in Elk Grove? Unlikely. At least with the auto dealers incentives there was the shiny lure of more car sales, better paying jobs and more tax revenues for the city. Will Elk Grove ever re-capture this revenue?

This is a bad idea no matter how much people in city hall will try to spin it - and spin it they will. People will recognize it as such.

Alas, if it benefits no one except one single untested, unproven business entity, I have complete faith our five empty suits on the city council will approve it full-throated and tout this as proof they are helping small businesses.

I can't believe I am about to say this, but you are actually making me miss Sophia! That is how pathetic those five empty suits are becoming.

Lynn said...

Spend, Spend, Spend......until it is all gone. Yes one council member said that they would give incentives until the money is all gone...looks like our council may be getting close to spending it all...then they will search for more monies to spend....will they be knocking at the homeowner doors for this? All of the comments posted are good...and I know council members and staff read this...however I would suggest the only hope ( if you can have it) is to show up to the council meetings and be heard..You may not be heard by council or staff, however the public watching, listening may begin to hear, take notice and just maybe we can force city transparency!!! I urge you show up!!!

Sarah Johnson said...

Incentives for opening a business in Old Town have been on the books for years, so it looks like these smart business owners did their due diligence and applied for the funds. This particular business has been wildly successful, both in their original location and their food truck, so predicting failure because the previous business in that location failed is short sighted. Lavishing thousands of dollars on the Auto Mall periodically makes my blood boil, but no one says anything about that except for the one comments above.

Connie said...

I will add one point, and that is, I have sent Randy Starbuck no less than five emails with ideas and/or suggestions. Once in awhile I have a good idea. Shop & Dine Elk Grove sold out in two weeks. That program was citywide and didn’t benefit just one business.

To date, Starbuck has not responded to one of my emails. Not one. Also, in giving his reports to the Elk Grove City Council on the skating rink, Starbuck gave erroneous information to the city council upon which they based their decision to spend our money. When brought to his attention, he did not correct his statements.

Why? As many of us have learned the hard way, we have had to do our own research on projects in order to ascertain if what staff is putting in their staff reports is, in fact, correct.

So if the person throwing out the challenge is a city employee, and I hope they are, I will remind staff what has occurred in the past when the council had egg on their faces because they got bad Intel from city staff.

As Jim Cooper is famous for saying, “Garbage in, garbage out!”

Anonymous said...

As I believe it was mentioned in another comment, this business located in West Sacramento has been open for 7 months. Hardly long enough to call it "wildly successful" at this point. A Food Truck...a whole different ballgame!

I believe that Economic Development must be tied into Economic Growth for it to be successful...in other words it must complete a full circle for it to economically successful for a city. OLD TOWN is over...done until some changes are made.

Sarah Johnson said...

Whether "wildly successful" is the best description or not, saying that it will fail because the last restaurant in that location failed, is not accurate at all. Once again, I am not advocating for the incentive or for this particular business, just trying to get all the pertinent info into the discussion.

So Sac Captn. Crip said...

I'd like to find out more info on the porn shop for old town.

Looking forward to EG taking the next step towards merging So Sac and EG. - More homes to burglarize and cars to steal! - Can't wait.

Anonymous said...

Don't look now, but on this Wed. nite City Council agenda is a consent item to go out to bid for ...drum roll please....a seasonal skating rink for next year!!!! Spend Spend Spend

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