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The city will use tax increment financing to recover some of its costs for buying, clearing, and removing contamination from the sites for Compass, Centra and the Hy-Vee grocery, Jacobsen said. He estimated the Compass project financing will include about $700,000 in tax increment money that the city will recover over the years in higher taxes on the improved site. He said Gateways owns its site and hasn’t asked for city assistance.
Jacobsen said the city paid about $300,000 for four lots in the Compass site, $1,750,000 for the Learning Center property, and $4.5 million for the 13-acre former Kmart site, where Hy-Vee hopes to build. The three sites produce no taxes while owned by the city.
Jacobsen said residents have been “somewhat clamoring” for a grocery so they won’t have to drive to supermarkets in surrounding cities. The 90,000-square-foot Hy-Vee store is planned to include a pharmacy, bakery, full restaurant with a patio, a deli and a convenience store/gas station. The Iowa-based company expects to hire about 400 full- and part-time workers for the grocery.
Jacobsen said the city has signed an agreement to negotiate only with Hy-Vee until October.
Jim Adams • 612-673-7658