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Sunday, November 24, 2024

Analysis: In Englewood, Whole Foods served community with household income 1/5 of typical Illinois store

Jeannette taylor rahm

Chicago Ald. Jeannette Taylor (20th Ward) and former Chicago Mayor Rahm Emanuel | Wikipedia

Chicago Ald. Jeannette Taylor (20th Ward) and former Chicago Mayor Rahm Emanuel | Wikipedia

Chicago taxpayers paid tens of millions to subsidize a Whole Foods store in one of Chicago's poorest neighborhoods-- one with a median household income barely one-fifth that of a typical store built in Illinois by the company.

The Englewood Whole Foods, which opened in 2016 and closed in late April, sought to serve a community with a median household income of just $23,019, versus an average of $103,124.

That's according to an analysis of Whole Foods locations and U.S. Census data by Chicago City Wire.

The analysis looked at all 27 Chicago area Whole Foods locations-- stores clustered in some of the area's wealthiest communities, mostly on the North Side, North Shore suburbs and other upscale locales like Hinsdale, River Forest and Elmhurst.

The median household income in Hinsdale is $202,115, River Forest $125,288 and Elmhurst $120,438, U.S. Census data shows.

Chicago Ald. Jeanette Taylor (20th), whose district is next to Englewood, told NBC-5 the store knowns as "Whole Paycheck" was too expensive, obviously.

“The community needs a grocery store. Whole Foods was just expensive. And a lot of people did not shop there. So, I understand it. But that should have been a community ask” to reduce store prices," Taylor said.

It didn't reduce prices, but Whole Foods did get a host of taxpayer money to open its Englewood store, which was proclaimed by Chicago elected officials as "economic development" for the city's most notorious crime-ridden neighborhood, which saw more than 30 murders in 2021.

In 2016, then-mayor Rahm Emanuel lured Whole Foods to the South Side location with $11 million in tax incentives

"The Whole Foods store will facilitate economic growth in the neighborhood, creating jobs and expanding access to quality and affordable food," Emanuel said.

A year later, Amazon then-CEO Jeff Bezos purchased the upscale grocery chain for $13.7 billion.

Whole Foods also received tax credits from the city for other purposes, as part of the Englewood deal.

It built a $32.4 million warehouse and distribution center in Chicago's Pullman neighborhood through a Tax Increment Financing (TIF) plan approved by the City Council. Those subsidies amounted to another $8.4 million to help pay for site preparation costs, including grading, demolition, and utility installation.

All told, the developer of the store, DL3 Realty, received more than $13 million in federal tax credits for the project from the Chicago Development Fund and PNC Bank.

“It’s a short term solution to a long term problem,” labor researcher Pedro Bortoto told Courthouse News. “It’s white liberal thinking. It’s, ‘we want to the neighborhood to have good food. Where do they have good food? Oh, Whole Foods.’ Never mind how expensive it is.”

Whole Foods has 514 locations in the U.S.

Whole Foods locations in Chicagoland

CityRegionStreet AddressZipMedian HHI
HinsdaleDuPage500 E. Ogden Ave.60521$202,115
DeerfieldNorth Shore760 Waukegan Rd.60015$154,824
NapervilleDuPage2607 W 75th St60540$128,617
River NorthChicago North3 W Chicago Ave60654$128,101
West LoopChicago North1 N Halsted St60661$125,365
River ForestWest Cook7245 Lake St60305$125,288
Lincoln ParkChicago North1550 N Kingsbury St60642$120,442
ElmhurstDuPage215 IL-8360126$120,438
NorthbrookNorth Shore840 Willow Rd Ste M60062$116,579
Park RidgeNW Cook225 W Touhy Ave60068$113,909
KildeerLake20281 Rand Rd60047$113,467
StreetervilleChicago North255 E Grand Ave60611$108,413
WheatonDuPage89 Danada Square E60189$107,996
WillowbrookDuPage6300 Kingery Hwy.60527$103,648
Dearborn ParkChicago South1101 S Canal St Ste 10760607$103,173
Vernon HillsLake851 N. Milwaukee Ave.60061$100,709
SauganashChicago North6020 N Cicero ave60646$100,670
Lake ViewChicago North3201 N Ashland Ave60657$94,722
SchaumburgNW Cook750 N Martingale Rd60173$92,568
Lake ViewChicago North3640 N Halsted St60613$84,463
Orland ParkSW Suburbs15260 South La Grange Road60462$83,652
BeverlyChicago South9600 S Western Ave60805$79,396
EvanstonNorth Shore2748 Green Bay Rd60201$77,371
EvanstonNorth Shore1640 Chicago Ave.60201$77,371
EdgewaterChicago North6009 N Broadway60660$53,365
Hyde ParkChicago South5118 S Lake Park Ave60615$44,658
EnglewoodChicago South832 W. 63rd60621$23,019

Source: WholeFoods.com & U.S. Census; Engelwood store is closed.

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