Investors ask Georgetown business district for $50,000 to help keep Save-a-lot store open

Darren Alexander, an investor in the Georgetown Save-a-lot, told the Business & TIF District Committee on Sept. 15 that he and fellow investors Sean and Makaelyn Legacy have put significant personal funds into operating the store and are asking the district for $50,000 to pay down supplier debt.

Alexander told committee members that the store’s original owner, Tony, has died and the business must go through probate, a process he said could take between nine months and a couple years. He said the investors cannot complete a purchase until all existing debts are paid and Save-a-lot corporate approves any new owners; Alexander said that corporate pre-approval typically takes about six weeks.

The investors, Alexander said, have not yet taken ownership but have been given operational control by Doug and Linda, the named owners. He described the prior operation as mismanaged, saying there was “a lot of wasteful spending” and that bonuses were paid while the business lost money; he said all debts will be paid before investors receive any return.

Alexander provided specific figures: he said the prospective sale price is $300,000, the group has invested roughly $100,000 between the three investors, and the store owes about $335,000 to vendors. He said Save-a-lot required $40,000 up front on the outstanding debt before opening a credit account; Alexander said the group paid $47,000 that day for the first truckload of groceries.

To bridge the gap while probate and corporate approvals proceed, Alexander asked the Business & TIF district for $50,000 to pay down the debt owed to Save-a-lot. He said the investors will not receive compensation until the purchase is complete and that, if they are unable to pay off debts and keep the store open, the investors would owe the city $50,000.

Alexander also said the group plans to expand in ways intended to increase revenue, including restoring a deli and installing a propane-filling station. During discussion, Rusty Berry raised a clause in the old IGA deed that he said prohibits food sales on the property, a restriction he warned could deter future business development; Alexander replied that the building is under contract through Save-a-lot and therefore cannot currently be sold to outside buyers.

The committee took no formal vote on funding during the meeting. The only recorded formal action in the minutes was a motion to adjourn, moved by Alder Curt Gordon and seconded by Alder Nick Krabel, which was approved at 7:22 p.m.