Insider Only Ottawa, Real Estate

Reduced retail space in Little Italy development throws potential grocery store into question

December 13, 2023

Retail space in a proposed Little Italy development has been significantly reduced, but the developer said he’s hopeful groceries will still be a major piece.

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Retail space in a development planned for Little Italy has been significantly reduced, but the developer said he’s hopeful grocery access will still be a major piece. The original proposal by Ottawa-based developer Arnon received approval from the city in 2020. The two-phase project would be located at 450 Rochester St., on what is now a parking lot just a few blocks from the Carling LRT station. Plans for the site include 500 new housing units, ranging from bachelor to family style dwellings. The project has been billed as a potential solution to Little Italy’s “food desert” status, referring to a lack of grocery stores in the area. But in an interview with OBJ Wednesday, Arnon president Gillie Vered said retail space has been significantly reduced in the revised plans, from 46,000 square feet to between 5,000 and 12,000. It’s a decision that he said will improve the project overall. “The retail has been completely reduced,” said Vered. “Drastically. It makes for a much better project, a much more attractive project. It makes for better living accommodations. It’s just better overall.” According to a study from the University of Alberta, a full-service grocery store in Canada is typically 10,000 to 35,000 square feet. Despite the new sizing, Vered said he hopes the development will ultimately improve grocery access for residents in Little Italy. “Hopefully, one of the retailers that we’ll rent to will have groceries,” he said. “Hopefully that will be the case. There’s no guarantee, but we’re really happy with the new design and it’s going to be gorgeous.” The design of the project is still being finalized, Vered said. Once complete, it will be presented to the city for approval. “We’re working on the revised plans and they’re coming along really, really well,” he said. “I never want to give a timeline. I want to make sure if I give a timeline, I can meet it. We’re working really hard on it and we’re really getting much closer. We’re feeling comfortable and we’re very happy with the final designs. The architects are doing a great job.” He added that the company is excited to build in the neighbourhood, which has seen significant residential development in the last few years. “We think it’s a fantastic location,” he said. “We think it will be really great for the continued revitalization of Preston Street. We really are going to build something special. We’re really, really excited about it.”

Little Italy losing access to groceries

At the end of November, Mercato Zacconi, one of the area’s only grocers, announced that it would be closing its doors at the end of the year after a dispute with the Alcohol and Gaming Commision of Ontario (AGCO). “This loss does not come lightly as we will be losing 40 dedicated employees in this difficult process,” the store said in a statement to social media. “We are unable to fulfill and serve the community as we have done for the past two years.” Mercato Zacconi was Little Italy’s “first full-service grocery store,” Lindsay Childerhose, executive director of the Preston Street BIA, told OBJ in 2022. In a recent email, Childerhose said its closure was an “enormous loss” for the community. “When Mercato Zacconi opened, they helped to fill the grocery retail gap that exists in Little Italy,” she wrote. “Eighty-three per cent of residents in this community depend on public transit and/or walkable amenities. This closure will directly impact those residents who relied on the convenience of purchasing their groceries at an independent, locally-owned and operated grocer in Little Italy.” Somerset Ward Coun. Ariel Troster said she was also concerned how the loss would affect residents. She also criticized the AGCO for revoking the ability for many restaurants and grocery stores to sell alcohol, an exception they were granted during the pandemic. “(Mercato Zacconi) brought much-needed produce and essential groceries to Little Italy and was such a lovely place to stop by,” she said. “... cracking down on alcohol sales in small restaurant/grocery stores like this one, means that communities lose essential amenities. It is hard for a business owner to make the profit margins work in a small store. I sincerely hope that the AGCO will reconsider.” While Little Italy is home to many mom-and-pop delis, bakeries and specialty retailers, the Arnon development is the only current proposal that could bring a full-service grocery store to the area.