Fresh on Fifth to relocate to True North Building in East Liverpool
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EAST LIVERPOOL -- With help from True North obtaining a loan through the Community Improvement Corporation (CIC), Fresh on Fifth will relocate to the True North Building.
Charles Bailley, CEO, True North Holdings, made the announcement during Wednesday's CIC meeting where he requested a $40,000 small business loan for cafe equipment, the cutting of a door and window to the patio area and patio railing and furniture.
CIC board members approved the loan for a 60-month term with 4 percent interest.
Bailey told the board that the True North holdings initially planned to use the area for a breakroom or cafeteria area for the 80 employees that will be in the building. He noted that that idea expanded in scope and scale to become an innovative new street side cafe for employees and for the public to use.
"We are excited about bringing in this cafe concept to the first floor, facing Fifth Street on the True North Building," Bailey said.
Bailey said the cafe will be an innovative modern architecturally significant space designed in an inviting bright place which will have seating for 22 to 24 people inside and an outdoor patio that will seat 22 people. The patio will be fenced in area.
Initially the cafe will be open during the week from 6 a.m. to 2 p.m. but could add expanded hours.
The cafe will be known as Fresh on Fifth at True North with an update to the Fresh on Fifth concept and their sandwiches, salads and other breakfast sandwiches and pastry items the deli is known for.
Bailey said he has been working with the city to obtain preliminary permission for the two parking spaces directly in front of the building to be designated the Fresh Express Lane for the purpose of a virtual drive through. The parking spaces allow people to order online or through an app and then be able to pull into one of the parking spots and have their order brought out to them. He also said this concept by providing more convenience would bring more people downtown. If the parking spaces are approved, the curb strip would be painted green designating those parking spaces for pick up customers.
Bailey touched on the financial impact of the Fresh Express Lane noting that most fast/casual restaurants do more than 40% of their business through drive throughs and this could improve the economics of Fresh on Fifth.
Bailey also said without the two parking spaces for the Fresh Express Lane the whole project is not economically viable, and they need that extra 40% revenue to come through the drive through to supplement the customer base Fresh on Fifth already has
As the two companies go through the process of moving the deli, they are working to add more to the business. Currently there is a tentative agreement with a local bakery to deliver baked goods at 6 a.m. every morning, so the deli offerings can be expanded to not only include the fresh sandwiches but can be the Fresh on Fifth Cafe and Bakery where fresh bread, muffins, rolls, pies, cookies, cakes and other pastries could be purchased. They will be delivered and packaged for consumer purchase.
The addition of the cafe to the True North Building is $100,000 above the original budget for the work on the building.
Bailey noted that he is not the operator of Fresh on Fifth but is leasing the space to Fresh on Fifth and the space is a build-to-suit in which True North provides the construction and financing which will be paid back by Fresh on Fifth through the rent they pay. The equipment and everything purchased through the loan would be assets of the building.
Bailey noted that these items would be unique to the city if they complement the other businesses in the city and not compete with them. He gave the example of coffee, saying that the coffee from the Fresh on Fifth would just be the typical brewed coffee, not the flavored coffees offered by Steel Native, and the bakery items would not include donuts so as not to compete with other local businesses that offer donuts.
The small business loan approved by the board will be used to make sure Fresh on Fifth stays on track in the move and can open simultaneously with the True North Building, Bailey said.
Bailey noted that work on the former BOSS, now True North Building, is rapidly progressing but slightly behind schedule due to investment the company had to make in HVAC units. There was the need to add 11 new HVAC units to the building. These units were not factored into the original plans and budget.
Bailey said contractors determined the units needed to be fixed and it makes sense to do that now instead of waiting six to 12 months and having them start leaking and damaging new ceilings.
The project is currently running over budget by approximately $300,000 due to some mechanical issues and construction items. Bailey has met with bankers and is taking care of that next week to remain on track.
The target completion date is the end of April. Bailey is hopeful to start moving people into the city sometime in May.
Board members also approved the removal of large bridge stones stored at the old Riverview Florist by a licensed, bonded and insured contractor to be used for repairs of the Lincoln Bridge at Hellbender Preserve/The Preserves of Jefferson County.