American Tap Liquors

Noticed that American Tap Liquors, located on S. Illinois next to Bombay Olive, has been closed for the past several weeks. Apparently they finally decided that having a storefront less than half a block from a downtown institution like Old Town Liquors was not the best idea, at least not according to this notice on the agenda for the next Liquor Control Commission meeting:

2.2 Transfer of a Class C1 Liquor License (Packaged Liquor Store) from American Tap Liquors, LLC to change the location from 518 South Illinois Avenue, Suite A to 715 North Giant City Road, Suite 7

American Tap Liquors Boycott

Someone is not that happy with American Tap Liquors in downtown Carbondale

Council OKs Liquor Store

Last night city council decided to OK the transfer of the liquor license from Pick's Liquors to the new American Tap Liquors opening next year on S. Illioins, next to El Grecos's and about 15 yards from Old Town Liquor. While I was happy to see the city step away from past attempts to micromanage business in Carbondale (the decision a couple of years ago to not allow another personal loan office to open up comes to mind) and am glad to see another business open in downtown Carbondale, from a marketing viewpoint, it is not a good location for two reasons:

1. As Navreet Kang pointed out, the clustering effect does not work for all types of products. It works best for shopping goods such as clothing, shoes and cars, hence you typically find businesses selling those products located near each other, as people move from business before making a decision. For liquor, people tend to select a store, then make their purchase from the offerings in that store, rather than going to multiple stores to make a decision.

2. The location is poor for upscale liquors and a "fine dining" establishment such as Gundala plans to put in the back as the businesses, with a few exceptions,  in that area cater heavily to students. The lack of convenient parking weights against it as well.

I hope I am wrong and that both American Tap and Old Town Liquor both thrive, as more business is usually welcome in downtown.

American Tap Liquors

Looks as if the LAB voted not to support the proposed American Tap Liquors establishment, which is tentatively planned for the long vacant American Tap sit on South Illinois. Likely the location of Old Town Liquors only 2 doors away played a large part in the decision.

The principals of American Tap Liquors argued that the "cluster effect" , the grouping of similar businesses near each other as you often see with clothing stores in a mall and car dealerships, would increase the sales of both businesses. However, the cluster effect only works if you have stores with similar but not identical products.Clothing stores and auto dealerships work because each offer similar products but with enough differences that customers will move from store to store. unless American Tap Liquors goes after a really high end audience, unlikely in a collage town, especially in the downtown area, you wind up with two stores, thirty feet apart, selling the same products. Both are going to carry Budweiser and Coors, with the only difference the price. Given that situation, one of the stores would not last very long.

American Tap Liquors

This looks as if it could get interesting. There is a request before the Liquor Advisory Board for the transfer of a liquor license from Pick's Liquors, which recently closed its East Grand location, American Tap Liquors, which, according to the meeting agenda, plans to open on the old American Tap location at 518 S. Illinois Avenue, less than a dozen yards from the current location of Old Town Liquors.

Downtown Development

The development of the old American Tap location is coming along. From what I understand, the plan to put apartments above the retail space failed to work out but I was surprised at how quickly the build in is coming along.

Bike Parking

City council will take up bike parking as a consent item on tonight's agenda. Looking over the agenda, the new ordinance appears, as I read it, requires businesses to provide bicycle parking, which is just wrong.  If the city wants to encourage bike usage in the city, the city should provide bike parking, removing motor vehicle parking to do so.

Did speak with acting mayor Don Monty about this and the new regulations will only apply to new construction. Already existing businesses such as Mary Lou's and Jimmy John's will not be required to provide parking spaces but whatever goes in at the old American Tap location will. Either provide bike parking on their property or pay for a bike rack for the city to install elsewhere.

American Tap Incentives

The Southern reports that the city is offering incentives to any one who will purchase and develop the old American Tap location at 518 Illinois.  Incentives include, aside from those provided by the TIF district, a limited amount of free permit parking and waiver of tap fees for utilities.  The city has also indicated flexibility on price.  Originally, the city paid $150,000 for the property, appraised at the time for $39,000.  The rationale given at the time for paying over triple the value of the property was to avoid a lengthly condemnation process and quickly remove the deteriorating American Tap building from the downtown streetscape, since apparently the fact it was in violation of a number of safety ordinances was not enough to get the owner at the time cited.

Originally, the city wanted enough for the property to recoup the demolition and purchase price and thought it had several interested parties at least back in 2009.  Nothing came of them though and I think the price is now in the neighborhood of $30,000.  From what I understand, El Greco contacted the city a few years ago about purchasing the property for an outdoor patio but the city held out (and still wants) an actual building there. 

American Tap Property Available

Looks as if the city is getting serious about putting a business on the old American Tap property at 518 S. University, at least based on this email sent out today:

The City of Carbondale is offering an exciting new incentive for real estate developers. As a result of the newly adopted Illinois-University Corridor TIF-#2 interest in downtown property is increasing. In an effort to promote and revitalize downtown Carbondale, the City is encouraging development of its property at 518 South Illinois Avenue to a local investor that is willing to present their development idea.

The City of Carbondale will review proposals and make the award selection based on the guidelines outlined on its website http://ci.carbondale.il.us/node/81 . Questions pertaining to the new economic development incentive should be directed to Gary Williams, Economic Development Coordinator at 457-3286.

I am not sure if this means they are willing to give it to the developer.  I know the owners of El Greco have approached the city in the past about acquiring the property for use as an outdoor patio for the restaurant. The city has turned them down, from what I understand, because it hopes to infil the space with a building. There have been several inquiries but nothing has moved beyond the inquiring stage.

Downtown Landscaping

I was at a meeting of Carbondale Main Street this afternoon, and the topic of the landscaping of the assorted parks in downtown (Town Square, Veterans Park, Friendship Park and the American Tap green space) came up.  In 1989, Carbondale Main Street and the city came to an agreement that CMS would assume responsibility for twice yearly landscaping of the downtown parks, not maintenance as that remains the city's responsibility.  In return, the city would pay CMS $25,000 per year.  Seem like a lot?  Not when you consider that, at the time, the city paid $68,000 per year just to landscape the Town Square and the decorative barrels along the Strip.  CMS had a professional landscaper provide the plants and direct the landscaping but provided volunteer labor, which helped reduce the cost significantly.

Now, 20+ years later, CMS landscaping responsibilities have expanded beyond the Town Square to include Veterans Park, Friendship Park, the empty American Tap space and the planters recently installed down the Strip, none of which existed in 1989.  Yet, the city only reimburses CMS $18,000, almost a 30% cut from 20 years ago.  Imagine how much it would cost the city if it had to resume responsibility for landscaping again, only with about twice as much area as needing planing and cleaning as it did 20 years ago

American Tap Lot

In case you are interested in the American Tap lot, next to El Greco's in downtown C'dale, the city's asking price is $150,000, which covers acquisition and demolition of the property. Assistant city manager Kevin Baity says the city will entertain other offers "especially if there is job creation and development included".

Sergio's Bar and Grill/ El Greco's

It appears that Sergio's Bar & Grill has fallen through. The company had applied for a liquor license last year and planned to go into the La Bamba/Express Burrito & old Jimmy John's locations on South Illinois, across the street from El Greco's. There's been no work done on either the exterior or interior of the two locations and the liquor license the company received last year has lapsed. So no Sergio's and no sign anything is going in there in the immediate future.

Across the street, El Greco's is negotiating with the city to turn the empty plot of ground where the American Tap used to stand into an outdoor dining area. Apparently the sticking point is the city's desire to lease the property to El Greco's, while the restaurant wishes to buy it outright.

American Tap

Checked with the city about the status of the American Tap property, and, according to both Mayor Cole and Kevin Baity, the city has actively tried to sell the property since purchasing it, talking with realtors both local and national, but nothing has come of it. According to the mayor, the city tried to sell it in conjunction with the building now occupied by The Counttry Goddess, but the asking price for the Goddess' building was too high. The city is now working with a developer who is acquiring other parcels in C'dale. If you're interested in the property, Asst. City Manager Baity sent along some details about it and is supposed to get back to me with a ballpark figure of how much the city is looking to recoup:

The Tap property has 55 feet of frontage and depth of 100 feet. All utilities are on the lot and a new sewer tap and service line were recently installed. Any development there would get a major real estate incentive through the Enterprise Zone. This is due to the City owning it and the lot does not have an assessed value. Therefore all of the improved value would receive 100% abatement for 5 years and then 50% abatement for the second 5 years.

Update: I just realized it's been over 4 years since the Tap was demolished.