Avatar is marching on with plans for a modern shopping center in Rio Rico despite persistent gloomy economic news such as Sunday’s filing by Bashas’ Inc. for Chapter 11 bankruptcy reorganization.

This trailer appeared last week on the southeast corner of the Rio Rico Plaza announcing the coming of Rio Rico Marketplace commercial development.

Sheila Vasquez, assistant project manager for Avatar, said key to the development is finding a chain grocery store anchor which would encompass about 80,000 square feet of the project. “We are talking to two or three (prospects) but I am not at liberty to say who they are.”

A trailer was parked on the southeastern area of the Rio Rico Plaza last week touting the future Rio Rico Market Place through a joint venture between Avatar and Evergreen Development Co. Inc. This fueled rumors that have been circulating for several months that Garrett’s IGA Supermarket will soon be shutting its doors.

Built in 1973

Garrett’s replaced the Food Giant grocery chain store which operated the supermarket since the plaza was built in 1973.

Owner Ray Garrett, dispelled rumors that his store is closing anytime soon. He said he intends to keep operating, “right until the day that they open a new supermarket. We are not going anywhere. We intend to remain a fully-loaded supermarket until a new store is in.”

Vasquez agreed that while Garrett’s lease is up in 2010, “what is best for the community” is that Garrett’s remain open during the construction of the Rio Rico Market Place, which will be located on about 26 acres north of the plaza and until a new store can fill in.

That may be a while. “In Arizona, economic conditions have been especially dismal and Bashas’ has not been immune to these market forces,” President and Chief Operating Officer Mike Proulx told the Phoenix Business Journal on Monday.

The ongoing credit crisis, consumers cutting back on spending and an ongoing dispute with the United Commercial Foodworkers Union have all combined to create the current situation for the Chandler-based Bashas,’

The company and all of its operating entities -- including Bashas' Food Stores, Food City and AJ's Fine Foods -- are seeking to have the case administered by the U.S. Bankruptcy Court for the Arizona District.

Bashas’ supplies groceries to several IGA Supermarkets in Arizona and New Mexico, including Garrett’s.

Modernize

Regarding the Rio Rico Market Place, Vasquez said that Avatar has wanted to “modernize” the retail area for some time.

“We want to bring more conveniences, more services and more jobs to our growing community,” she said.

Evergreen was selected for the joint venture, Vasquez said, because of its “extensive experience.” They have developed shopping centers in Casa Grande, Phoenix and the Wal-Mart in Green Valley near the Duval Mine Road exit off Interstate 19.

A telephone message for Ken Gatt, vice president of leasing for Evergreen, went unanswered as of press time on Monday.