H-E-B may mean the end for the Palmer Club

TEXAS CITY — Supermarket chain H-E-B’s plan to build a larger store in Texas City could mean the end of Palmer Club, a watering hole frequented by mainlanders for 30 years.

Finding a new landlord who welcomes bars won’t be easy, said Larry Roberts, who with his wife, Fay, owns Palmer Club, 3500 Palmer Highway.

“It’s always been like an old favorite,” he said. “What can I say? We’re heartbroken.”

Late last year, H-E-B bought the 87,237-square-foot Palmer Shopping Center, just east of state Highway 146 and north of Palmer Highway, from Silvestri Investments with plans for a new concept.

Officials in the corporate offices of the San Antonio-based chain, which already operates a Texas City store, have been mum about plans. But some employees of H-E-B’s store at 918 20th Street N. have said the new Palmer Highway concept would be a Joe V’s Smart Shop, a no-frills format known for low prices.

Others have speculated H-E-B would build a Mi Tienda, Spanish for “my store,” which offers products favored by Hispanic shoppers.

H-E-B spokeswoman Cyndy Garza Roberts declined to elaborate last week, saying only: “H-E-B has purchased the Palmer Highway shopping center and we are in the developmental stages of bringing a new, larger store format to the Texas City community.

“While the unique format has not been finalized, the company is looking forward to better serving Texas City residents.”

While Texas City officials and some area shoppers welcome fresh retail at the long-struggling shopping center, Roberts said he’s unhappy about being forced out by his new landlord. He said he hoped to find a new site in the area, but wasn’t certain about Palmer Club’s future.

“We’re too young for retirement, too old to get kicked out on the street,” Roberts said.

After Kmart

Kmart left the Palmer Shopping Center more than 20 years ago. Its building sat vacant for years. After Kmart left, shopping center owner Silvestri Investments subdivided the building, which fell into disrepair. In January 2010, the shopping center got a boost when South Side Roller Derby announced it would lease 25,000 square feet of the former Kmart building to house an all-female roller derby.

Last month, South Side Roller Derby confirmed H-E-B bought out its lease. South Side Roller Derby has since moved operations to Pearwood Skate Center in Pearland.

But Palmer Club has never been part of the Kmart building, which makes up a large part of the shopping center. Though part of the shopping center, Palmer Club is in a free-standing building next to the subdivided Kmart shell.

On Wednesday, the Roberts received an email from Debbie Knox, East Texas regional manager of Shopping Center Development for H-E-B.

“I left two voice-mail messages for you yesterday,” Knox said in the email. “As I mentioned in the voice mail, H-E-B has a very tight construction schedule for our new store in the building. We need to have all tenants out of all of the buildings in the area prior to starting the required demolition work. We are hopeful that you will be able to find another location in Texas City to continue your business.”

No Buy-Out Option

As part of the Palmer Shopping Center acquisition, H-E-B also apparently owns a small retail strip center to the southwest of the former Kmart building. The strip center is home to such tenants at CiCi’s Pizza, 3506 Palmer Highway, and La Michoacana Meat Market, 3528 Palmer Highway. Employees answering the phone Friday at CiCi’s said they didn’t know whether the eatery would have to leave. Owners of other retailers and businesses in the strip center could not be reached for comment.

Unlike South Side Roller Derby, H-E-B did not have to buy out the Palmer Club lease. Before Silvestri Investments sold the shopping center to the supermarket chain, it put Palmer Club on a month-to-month lease. Roberts said he tried to negotiate for a longer-term lease.

And he said he didn’t understand why H-E-B wouldn’t continue a lease with Palmer Club.

In an email to Knox, Roberts said: “We are at a loss as to why and is there any chance that the person or persons that made that decision could reconsider if I went into the 30-year history of that iconic institution ...”.

H-E-B did not respond to a request for comment about Roberts’ entreaty to remain at the shopping center.

Sad To See It Go

Roy Robison opened Palmer Club in 1982. Robison also is sad to see it go, he said. In its 30 years, more than 2,000 people were regulars at the Palmer Club, he said.

“It was kind of a family place,” Robison said.

The Roberts bought Palmer Club from Robison nine years ago. The bar was never rowdy, and most patrons went to watch sports and relax, Larry Roberts said.

“Everybody just loves each other; it’s a place to bond and enjoy each other’s company, watch sports, the Super Bowl, the World Series,” he said.

If the issue isn’t resolved, Palmer Club will have to leave by March 4, Roberts said.

Will he plan one last party?

“The customers might have one, but I won’t be there,” Roberts said. “It’s just too hard. It’s killing me.”