Biz Buzz: Crews break ground on new island grocery store; after years of delay, hotel rises on island

City officials this week confirmed Gordon Food Service, which last month opened a store at 215 Main St. in League City, had secured construction permits.

Gordon Food Service is the first national grocer to open in the Houston area in nearly a decade. Aldi, which arrived in 2013, has long considered Galveston but hasn’t settled on a site.

Gordon stores primarily are designed to provide chef-quality products to restaurants and food service professionals of all types, but also serve the general public, the company said. The stores sell meats by the piece, pound or case; they feature wholesale walk-in coolers with cases of produce, meats and dairy items; and grab-and-go foods, among other items.

Last month, the company opened four Houston-area stores, including in League City, with plans for two more to debut soon.

Company officials haven’t been able to provide timelines for the Galveston store.

Gordon Food Service stores typically are 25,000 square feet to 30,000 square feet. The company’s growth strategy has been to open in markets where its main business of food distribution is thriving, according to reports. Gordon Food Service in 2014 acquired the more locally known Houston-based Glazier Foods Co. Texas represents the most stores Gordon Food Services has opened at one time in any state. Stay tuned.

Grocer gossip: Elsewhere in the grocery aisle, a neighborhood store called Mom’s Farm to Table is in the works for the island’s East End. Look soon for more details.

Room service: After more than four years spent overcoming permit obstacles, COVID and supply constraints, crews finally have begun work on pilings for a 62-room hotel by Guru Nanak Development Corp. at 2311 Ave. P ½ in Galveston.

The hotel will be part of the Ascend Hotel Collection brand owned by Choice Hotels, which bills itself as boutique properties featuring art and amenities with local flavor. Developers in 2019 planned a Park Inn & Suites, a Radisson concept.

Initially, developers wanted to build a six-story hotel. They had to settle for five stories with a wider footprint.

The sticking point involved the definition, or lack thereof, of mezzanine. Galveston’s land development regulations don’t define or allow for mezzanines, which are low stories between two others, typically between the ground and first floors.

City administrators wanted to count the mezzanine proposed for the hotel as an additional story, and city rules stipulate a building at the site can’t exceed 70 feet in height or five stories.

The proposed building wouldn’t have exceeded either limit even with the mezzanine, Michael Gaertner, architect for the development, said in previous interviews.

Gaertner this week attributed delays in the hotel’s construction to the pandemic and supply chain snags that have slowed construction projects far and wide. No word on an opening date. Stay tuned.

Getting fresh: A new kind of shopping is cropping up at Tanger Outlets, 5885 Gulf Freeway in Texas City. Through Dec. 16, the shopping center will be home to Bay Area Saturday Market. The new bi-monthly farmers market will be in the parking lot near the Under Armour entrance from 10 a.m. to 2 p.m. every first and third Saturday of the month. The market will feature produce, raw honey, homemade breads, baked goods and more from area farmers and artisans.

Coming soon: League City businessman Sammy Virani has added to his sizable real estate portfolio through a cash transaction of more than $50 million involving a prime parcel near Baybrook Mall. Meanwhile, rumors are flying about Sonny’s Place in Galveston. Find out what’s true and what’s not next week in Biz Buzz.