The Cortez City Council is paving the way for Safeway to begin building a grocery store on Main Street next door to the Golden Corral.

In a 5-1 vote Tuesday night, the council approved a plat amendment for the grocery chain that allows it to consolidate four adjacent commercial lots into just one. The move represents one more step toward construction of a project heralded by Cortez consumers who are eager to reap the advantages of having three grocery stores competing for their hard-earned dollars.

The Wal-Mart Superstore, complete with a full grocery, is scheduled to open its doors on Jan. 26.

"So far it is still a ‘go’ project; all indications show that it will happen," said Cortez City Manager Hal Shepherd yesterday. "Safeway is proceeding and has already spent money on engineering the site. They also put it under one ownership, so that tells me they are moving ahead."

No building permit application has been filed yet for the 56,000-square-foot building and requisite parking lots, but city officials are predicting that the project will be finalized within 60 days. Safeway’s land purchase is also not yet completed, although the sale appears likely because property owners allowed Safeway to act as their agent in asking city council for the plat amendment.

In a preliminary agreement negotiated between the city and Safeway, the company will receive a tax rebate of $30,000 per year over the first four years of business, in exchange for making necessary improvements to the 7.8-acre piece of commercial property, situated between Main Street and Montezuma Avenue.

Mainly, the rather low-level lot needs much better drainage, so Safeway will install a holding tank (see graphic) to collect runoff and prevent it from draining onto adjacent property. From there the water will flow at a regulated pace under Main Street using existing pipes, and then on into the McElmo Creek drainage system.

Landscaping, including planting drought-resistant shrubbery and trees, will also be done along three sides of the property and building as part of the $120,000 tax-break agreement. City planners especially wanted to limit Safeway’s sight impact from the Montezuma Street side, which borders the Parque de Vida neighborhood. Limited landscaping will be done in the front.

The negotiated agreement still needs a vote of approval from the city council.

The grocery is expected to bring in around $350,000 per year in additional sales taxes for the city — money that will be used for improvements to the community, Shepherd said. The incentive also allows Safeway to recoup some of the expensive upgrade costs needed on the land before construction can begin.

"The city is going to come out way ahead, and of course that money will be used for general fund departments. Plus it helps Safeway solve some of those difficult drainage issues on that lot which are not entirely their fault," he said, referring to neighboring lots that drain onto the site. Those costs will likely be more than the total rebate, Shepherd said.

Safeway has also agreed to pay for moving a sewer line and easement slightly so that it does not run underneath the building. The chain must also negotiate with the Colorado Department of Transportation for the construction of a deceleration lane on Main Street so that customers can safely access the main parking lot. Additional parking access will be available from Montezuma Street. The store’s only public entrance will face Main Street.

The deceleration lane will cause two nearby businesses to lose their Main Street access, so Safeway plans to install a driveway from the parking lot to those properties, although those plans are still being negotiated with the owners. Truck traffic will be directed as much as possible through the Main Street access.

Council member Darlene Denison voted against the amendment, arguing that more studies were needed on the effects Safeway will have on nearby streets and businesses. City zoning administrator Jeff Reinhart responded that such studies are for subdivisions and were unnecessary because Safeway "had a right to build" on any commercial property that they purchase. Cortez Mayor Joe Keck abstained, citing a conflict of interest.