Aurora considers loan for new grocery store on west side

Aurora is considering giving a local grocer a $325,000 loan to help open a store in a former Aldi on the west side, and allowing it to use sales taxes to repay it.

Carniceria El Paso Grande Corp., and the family that owns it, would have six years to repay the loan, according to a proposal aldermen discussed at a committee of the whole meeting Tuesday.

Half of the sales tax the store would generate each year would go to repay the loan. City development officials expect the store would generate about $110,000 in local sales tax each year.

The store would be at 2134 W. Galena Blvd.

Carniceria El Paso Grande bought the building in 2022. But its plans to open the store and deli were delayed for several reasons. There was a fire at the company’s El Paso Grande Supermercado and prepared-food-production kitchen on East New York Street.

The Aldi site needed roof repairs, estimated at $115,000. And the business paid $500,000 for equipment for the store, but the seller has not delivered it. In the meantime the company got other equipment, but due to size differences it had to modify the spaces where it was to be installed, according to city officials. The company is considering suing the vendor.

The loan can be used for: the roof work; installation of two kitchen exhaust hoods, for $30,000; and $180,000 in merchandise to stock the store.

If the sales tax isn’t enough, the business would have to pay the difference at the end of the six-year term. The city is charging 5.5% interest.

Polo and Celia Rodriguez started their business with the El Paso Chico meat and grocery shop in their home, then opened El Paso Grande Supermercado on New York Street. Polo was murdered outside that store in 1991.

The company owns El Paso Chico Mercado store on Grove Street, and a tortilleria, El Valle Florida, on Beach Street.

The city council is scheduled to vote on the deal July 23.