CLEVELAND HEIGHTS, Ohio — Eighteen months after a grocery store moved out of a Cleveland Heights neighborhood, filling the vacant space with another grocer has proven a challenge. The owner of the Cedar-Fairmount property vacated by Dave’s Market in 2022 said a changing industry and rising costs have been a hurdle in finding a new tenant.
Owner Sal Russo recently wrote to the community, pleading his case for a $1 million economic development grant from the city.
“It’s all based on the cost for any operator to come in here and do a complete overhaul and build a brand new store to their specifications. That’s the driving factor of the need for city assistance,” Russo explained.
The grocery business runs in Russo’s blood. His grandfather opened a small market in the Cedar-Fairmount neighborhood in 1931.
“Set aside the last 18 months, there’s been a continuously operating neighborhood grocery store at this location for 90 years,” said Sal Russo.
Over the years, his grandfather’s store grew into a neighborhood fixture, and Russo’s Supermarkets expanded into a four-store chain. By the late 90s, Giant Eagle took over operations, but the Russo family maintained ownership of their flagship store.
In 2000, residents in the neighborhood known for its historic homes and old-world charm pushed back against Giant Eagle’s plan to replace the 18,000 square foot store with a much larger “big-box” style location.
When those plans fell through, Giant Eagle settled for a 2001 remodel of the building. This is the last time it’s been updated.
Northeast Ohio-based chain Dave’s Market eventually took the helm as the neighborhood grocer until October 2022. Russo said it was more economical for the grocer to relocate to another building than spring for costly renovations of the older Cedar-Grandview building.
Since then, neighbors told News 5 they miss the convenience of a grocery store within walking distance.
“You need to plan trips specific to going grocery shopping now. We’d otherwise just walk over here,” said Eric Hillenbrand.
It’s also been a financial strain for the property owners.
“We’re a small family real estate company,” Russo said. “Dave’s has been gone since October of 2022, so we’re not generating any rental income on what’s the largest space, by far, in this entire commercial district.”
Several years ago, Russo added a second parking lot across the street from its current lot. But he explained it’s been difficult to compete with the deeper pockets of larger companies, despite efforts to sell potential tenants on the building’s location and a lack of nearby competition.
When California-based chain Grocery Outlet showed promising interest, Russo agreed to charge the company half the rent that Dave’s paid in 2013.
“We’re looking at a situation where we’re going to be collecting half the rent, but we’re going to be in an environment where inflation is up 30-percent in that time period,” he said. “So without the subsidy, the numbers simply don’t work.”
He said the city has been a willing and helpful partner during the process.
Cleveland Heights Mayor Kahlil Seren told News 5 that the city recognizes the demand and need for a grocery store in the neighborhood, but he also said it’s important to balance its responsibility to economic development across the entire city.
“We have to take care to pay close attention to the Cedar-Fairmount business district, but also the Noble-Nela business district and the Mayfield business district. These are the things we have to weigh,” Seren said.
He stopped short of committing resources to a redevelopment project but explained that the city is working with Russo and Grocery Outlet to find a deal that’s agreeable to all parties.
Russo hopes the Department of Economic Development and City Council will agree to award a grant in the coming months.
Meanwhile, neighbors said they’re hoping to fill the current gap in their neighborhood.
“When you think about what makes part of a vital neighborhood, a grocer is kind of part of that,” Hillenbrand said.
Russo believes an agreement could be reached by the end of May. If massive renovations go according to plan, Grocery Outlet could open in the space sometime in 2025.
