Newk's Eatery planned for The Heart of Auburn
Posted: Wednesday, January 21, 2015 10:40 am | Updated: 11:12 am, Wed Jan 21, 2015.
The Heart of Auburn retail center could soon welcome a new resident.
Tuesday night the Auburn City Council approved the first reading of a development agreement with Orange-Auburn LLC, in reference to constructing a Newk’s Eatery in The Heart of Auburn at 340 and 344 S. Gay St.
The Council will vote to approve or deny the agreement in its second and final reading at the Feb. 3 City Council meeting.
As per the agreement, in exchange for helping further develop a key economic corridor in the city, adding jobs and expanding the city’s tax base, The City of Auburn will to remit to Orange-Auburn LLC portions of certain sales and use tax for up to 10 years.
The maximum amount reimbursable under the agreement is $235,000, not to exceed $23,500 in any one year. The total project cost to build the new restaurant is about $2.7 million.
The agreement falls under the city’s Commercial Development Incentives Program, which was established by the city in 2011 to prompt both fresh development and redevelopment of existing businesses in need of aesthetic improvements in key economic corridors. If approved, Orange-Auburn will build according to streetscape and architectural specifications outlined in the city’s Downtown Master Plan in exchange for the tax rebate.
Newk’s Eatery, which will face Gay Street, along with additional parking, will make up the second phase of the Heart of Auburn development. The first phase faces College Street and includes businesses such as Taziki’s, Mountain High Outfitters, BurgerFi and CVS Pharmacy.
“Understanding that the location of the development is critical to creating synergy for new and existing commercial retail in downtown Auburn, the development will provide additional eatery options in the downtown area and will provide the Gay Street streetscape detailed in the Downtown Master Plan, this project meets a three-pronged commercial development initiative important to the City of Auburn,” states a summary of the project included in City Council documents.
Megan McGowen, deputy economic development director for the City of Auburn, said Orange-Auburn initially only owned the portion making up the first phase of the retail center, and the city passed a similar incentives agreement with the company for that phase in summer of 2013. It later acquired the land for the second phase.
“This incentive — its main focus was that Orange Development was kind enough to install a bigger streetscape that we have detailed in our Downtown Master Plan,” McGowen explained.
The retail center is named for the former Heart of Auburn Motel, which stood in that location for more than 50 years.
“This is a key redevelopment project, and that’s one of the reasons we're now doing a second tax rebate for that area,” McGowen said. “We were dealing with a very aged hotel, and we’ve replaced that with a very vibrant commercial development that is right across from Auburn University.”
McGowen added that the goal is to create commercial centers that are attractive to local residents and visitors alike.
“It has created some synergy in that area for commercial development,” McGowen said. “It’s a very successful development.”
Newk’s, dubbed a “fast-casual” dining concept known for its homemade sandwiches, salads and pizzas, opened its first location in the Auburn-Opelika area in Tiger Town last spring.
Also on Tuesday night, the City Council approved a similar development agreement with Sleep Tight Inc., doing business as Bedzzz Express at 1415 Opelika Road, the former Blockbuster Video building.
The agreement states that the city will remit portions of certain sales and use tax for up to five years, with a maximum of $25,000 reimbursable, not to exceed $5,000 in any one year.
Identified project costs total $179,000.
McGowen said the business will be redoing the façade on the existing structure and enhancing the exterior architecture overall in exchange for the tax rebate from the city.
Bedzzz Express and Orange-Auburn, LLC, if approved, mark the 19th and 20th businesses in Auburn that have taken advantage of the Commercial Development Incentives Program since its inception.
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