Glitch threatens timeline in Sysco development         

[JUNE 8, 2005]  On May 9 Robert's Sysco Food Service announced its intention to build its newest food warehouse and distribution center in Lincoln. With high development costs, the company's focus has been on a July 1 groundbreaking, with intentions to be operational in less than a year.

City and county officials and Sysco developers are hustling to resolve details in order to sign a development agreement as deadlines loom. Progress to get funds, buy the land and get public approval to change zoning all hinge on getting a development agreement signed. But before that can happen, several logistics and cost issues must be hurdled.

A water supply problem is at the top of the list that officials and developers have been trying to work out in the last week. The fire suppressant system for the new food warehouse and distribution center requires a higher-than-normal water volume and pressure. The system is a necessary part of the new plant's design and requires 3,000 gallons per minute at 60 pounds per square inch. In comparison, the new Wal-Mart Supercenter specifications call for 1,600 gallons per minute at 20 pounds per square inch. Lincoln has available up to 1,800 gallons per minute at 25 pounds per square inch.

Using what is currently available would require laying 12-inch tile to the location, which would cost approximately $1.5 million.

Illinois American Water has been to the table with developers to try to find a less costly solution. But they are unable to provide anything like what is needed.

A couple of alternatives are being looked at. One possibility would be for the Sysco to build its own water tower and underground storage tank. That would cost roughly $400,000 to $500,000.

In order to cover that cost, Sysco is asking for an amendment to the incentives the city originally proposed. Part of the original offer included rebating sales tax over $90,000 to Sysco. Sysco is asking the city to lower the $90,000 figure to $50,000 for the first five years to offset the costs of the water tower and tank.

["City sweetens development offer -- Industry-specific enticements added to incentive package"]

Also in the mix of financial adjustments is a possible shortfall of $200,000 anticipated from a Community Development Assistance Program grant. The Illinois grant is regulated by the federal government and offered for economic development. Without it the city will need to be prepared to pick up the estimated $400,000 cost for the development of Heitman Drive and Madigan Drive. Possibly Sysco will split that cost.

["Road construction plans unfolded for the new Sysco warehouse/distribution center"]

For information on the state's CDAP grants, see http://www.little-egypt.com/scirpdc/Grants02.htm.

A meeting with all parties scheduled for this afternoon could resolve the remaining issues.

The company plans to break ground by July 1. A number of timely processes, hearings and meetings need to take place before and after, but everything hinges at this time around signing an agreement.

In order to expedite the process there will soon be a lot of legal notices appearing for annexation, zoning and such, Bates said.

"You can call us Houdini if it gets done by July 1. But things are in the works," he added.

The Monday city business meeting was adjourned to next week with hopes of having a Sysco development agreement and preliminary engineering and construction for infrastructure agreement ready for city approval.

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