No Salt Lake loan or Gigante

Plans for a Hispanic-themed "lifestyle center" at North Temple and Redwood Road now look like they won't include two controversial elements: Mexican grocer Gigante and a $2.25 million loan from the city.

When news of the development, planned by California-based Legaspi Co., first hit the media in March, much of the buzz was about the possibility of the grocery chain opening its first Utah store. In addition to its stores in Mexico, Gigante has nine stores in the United States, all in California.

"At this point, there's not any negotiations going on" with Gigante, Legaspi partner Keith Plottel said.

Residents on the city's west side have long wanted a full-service grocery in their neighborhood. But rumors that developers were courting Gigante sparked criticism from some residents who worried it would push smaller, locally owned Hispanic markets out of business and would not offer much for non-Hispanic residents. Now, it seems, that debate was premature.

"I don't have any plans" to open a Utah store, Gigante USA president Jack Deceliere said Thursday. He was bewildered by the rumors and expressed unfamiliarity with Salt Lake City, even asking, "What state is Salt Lake City in?"

Plottel said Gigante was simply shown as a local example when city officials visited California last November to see the kind of development Legaspi had in mind.

But Plottel said plans still call for the development to be anchored by a 45,000-square-foot grocery store with a bakery, a full-service deli and a large produce department. He said Lesgapi is talking with several companies.

He said the store will likely include an expanded array of Latino foods and products, but signs will be printed in English, and most of the products will be of a type that could be found in any suburban grocery store across America.

Mayor Rocky Anderson's economic adviser, Alison McFarlane, said the project still seems to be on track, but its specifics are far from settled.

The developers, meanwhile, are no longer asking for a city loan. When the plan was presented to the City Council in March, the developers expected to ask for $2.25 million from the city's revolving business-loan fund. The money for the fund comes from repayments of loans taken out by other businesses, plus interest.

McFarlane said the developers withdrew their loan application after the city requested a proposed business model and projected revenue. The developers said they did not have that information because tenants and specifics have not been worked out.