by Liz Daube
Staff Writer
The Main Library might have a new cafe soon, but some Downtown competitors are questioning the $260,000 incentive money slated for Shelby’s Coffee Shoppe.
City Council is considering legislation that would approve Shelby’s lease and operating agreement; which would allow the cafe to start building out space in the Main Library. The bill must pass the Finance and Economic, Community and International Development committees before returning for full Council vote. The proposed terms allow the cafe’s owner, Steve Hicks, to be reimbursed by Better Jacksonville Plan funds for up to $260,000 of his start-up costs. That money would go toward permanent fixtures in the space, including furniture and plumbing.
Some competing retailers have argued against the incentive funding, like Benoit and Kathy Desclefs. They own Magnificat Cafe, which is located across the street from the Main Library. Kathy said they invested their own money in the Downtown restaurant three years ago.
“It is not justifiable to use taxpayer dollars (that includes my money) to pay for private small business start-up. Basically then, I am paying for my competitor’s investment,” she wrote in a letter to the mayor’s office.
Kathy added, “Anytime you go into business for yourself, you still have to build it yourself. That’s just business. If they can’t make it on their own initiative, why are they there?”
Susie Wiles, the mayor’s chief of communications, said the purpose of the incentive funding is to help the new cafe test out the Downtown market.
“We’re just trying to make it favorable while we build a market,” she said. “It hasn’t been proven yet, so we’re willing to invest a little. We’re asking him to stay open and to have certain menu items that perhaps the market wouldn’t dictate.”
Hicks, who plans to own and operate the Downtown Shelby’s separately from his mother’s cafe in Neptune Beach, was one of two people who responded to the City’s original Request for Proposals. He said he thinks the incentive funds are fair because the opportunity to open a cafe in the library was open to the public.
“We wanted to expand. We wanted a niche space that some other people wouldn’t go into,” said Hicks.
He said he won over the other bidder, Dray’s Catering, because the original Shelby’s received a better score from City buyers. At a bid conference in June 2005, the businesses were judged on factors like qualifications, financial responsibility and menu offerings.
Since then, Dray’s has opened Chunky Chef restaurant on Bay Street. Hicks has continued negotiations. The $260,000 provided in the current cafe proposal is an $85,000 increase over the original offer the City sent out when soliciting bids.
Wiles said the former project manager didn’t consider all the costs of building out the space. For example, Wiles said the cafe has to have its own bathroom because it may be open during hours when the library is closed.
Stacie Bucher, spokeswoman for the library, said the City originally wanted to complete part of the buildout before the tenant arrived. Since then, Bucher said the City decided that reimbursing the cafe owner for all of the work would be more efficient.
“We’re doing the buildout because the cafe will always be there, regardless of the vendor,” said Bucher. “We will always have somebody hopefully in there.”
She added that a cafe has always been an important part of the Main Library’s plans.
“A lot of libraries across the country have cafes,” said Bucher. “It encourages people to come Downtown and go to the library. They will be able to take their coffee to the courtyard with their laptops – we have wireless Internet – or sit and read. It’s sort of a take-off on bookstores.”
The proposed agreement requires Shelby’s to offer a minimum amount of menu items, including espresso drinks, pastries and yogurt. Soups, salads and sandwiches are optional, but Hicks said he intends to offer lunch items.
He said the Downtown location will carry a similar menu to Shelby’s at the beach. Hicks added that he wants “more Americana type” lunch options, like ham and cheese sandwiches, in addition to healthy wraps. He said he expects coffee drinks to make up about 60 percent of his sales.
Work on the cafe won’t start until the lease and operating agreement are finalized, according to Bucher, and she said the current space consists of a concrete floor. The finished product, however, would include a 2,400 square-foot shop downstairs and a 10,000 square-foot exterior courtyard space.
The proposed lease requires Shelby’s to open by December and remain operational for at least five years.