Plans for Fourth Street Market in DeKalb rejected by City Council

DeKALB – DeKalb city leaders this week turned down a request that would have paved the way for a convenience store with a small deli to set up shop in the former 7-Eleven, 802 S. Fourth St., DeKalb.

Owner Yusri Kattoum made another pitch to members of the City Council for a package liquor license for the space.

DeKalb city leaders previously gave this topic discussion during their March 11 council meeting.

City Manager Bill Nicklas said city staff was sold on the original idea of a convenience store with a small deli, but the plan has been revised so much since then.

“In the process of working out a revised concept, I couldn’t help but notice that there were a number of refrigerated units in the aisles,” Nicklas said. “Of course, they can be used for display of pre-made sandwiches … milk and so forth but also be used for the sale of beer. This was more than just an occasional six-pack that was going with a deli product out the door with a customer. I think now we’re in the direction of something else.”

Some council members said they would be in favor of a compromise if the owner was willing to work with the city.

Sixth Ward Alderman Mike Verbic suggested that the owner consider restricting the amount of package liquor that would be available on the sales floor.

“What if we discussed … maintaining a percentage of their floor space,” Verbic said. “Let’s say it’s 10%, or limited to 10%. Offering up still that opportunity to sell a few spirits but within reason. No, I don’t support the package liquor store either. We already got one in your ward down the street. But yet the deli idea is welcome.”

Second Ward Alderwoman Barb Larson echoed that sentiment.

“I could maybe get behind this if it was beer and wine as part of coming in the deli,” Larson said.

Mayor Cohen Barnes questioned the logistics that would enable such a compromise to stand.

Nicklas said the city doesn’t have the manpower to enforce liquor license violations over the layout and configuration of alcohol on a sales floor.

“We don’t have people who can go down there and check it everyday,” Nicklas said. “What are we going to do? Take them to court because I think you had two six-packs over the line? I think the judge is going to throw that out of the court. So it’s a little bit of the honor system. … I’m just saying this is not what we started with. We’re all delighted with the idea of a convenience store and particularly that deli idea.”

Seventh Ward Alderman John Walker asked if the owner could still make a good living doing business in town if unable to obtain a package liquor license from the city.

“The liquor license would help the business get foot traffic in the store,” Kattoum said in reply.

Kattoum argued that the storefront in question would be disadvantaged operationally and is deserving of a package liquor license.

Under the proposal submitted to the city, the owner submitted a rough drawing that details more than 25% of floor space allocated to alcohol sales, city documents show. But city staff said they would like the storefront to maintain fewer than 25% of its total floor area to alcohol sales.

“The total square footage of the store is 2,500 square feet, which includes the storage area,” Kattoum said. “As far as the sales floor of the space, the restriction that you have before is less than 25% of the area. Given the other liquor stores in the area, I would be very hard pressed to be able to compete with stores that are 10,000 square feet plus, including the one down the street, The Twin Liquors, if my only business is to come from the liquor side. I’d be shooting myself in the foot to come here before you and ask for a license and layout that would restrict me to 25% of already a small store. If I was looking to open a purely liquor store in DeKalb, there’s no way, I think, you can compete with a store that small.”

Barnes said he was concerned with Kattoum’s argument.

“This is the problem,” Barnes said. “We have to get into what defines 25%. … I see this as, do you want a liquor store on the corner or not? Because that’s the way our liquor license is. That’s the way we’ve issued every other liquor license to every other business in our community and that’s what’s actually before us. Do we want a package liquor store on the corner or not?”

Walker said he would hate for the city to turn away prospective businesses making people jump through hoops to set up shop in the 4th Ward.

Fourth Ward Alderman Greg Perkins said he loves the original idea that was proposed to the city, but since the proposal’s been revised, he can’t throw his support behind it.

“As the alderman of that ward, feedback I’ve gotten has been pretty clear,” Perkins said. “Everyone is very, very receptive to the thought of a deli or a convenience store. It’s equally clear that no one is in favor of another package liquor store in that area.”

The City Council moved forward with city staff’s recommendation in a 2-5 split vote agreeing not to support the package liquor license request. The dissenting votes were cast by 3rd Ward Alderman Tracy Smith, Barnes, Larson, Perkins and Verbic.