A development deal that will transform the Cottage View Drive-In movie theater site into a Wal-Mart Supercenter, along with an associated $2.97 million road and sewer project, has been approved by the Cottage Grove City Council.

The council's action culminates nearly a year of planning and negotiations that will lead to construction of a 180,000-square-foot Wal-Mart that will anchor a planned retail center called Shoppes at Cottage View. The new shopping center will be along E. Point Douglas Road near the junction of Hwy. 61 and Innovation Road and will open in 2014.

The development deal involves five property parcels, including the "Red Barn" VFW Post 8752. Wal-Mart has not closed on the purchases of those properties, but the deal allows work to proceed on the road project, said Robin Roland, the city's finance director. Purchases are expected to close early in 2013.

The city will pay $600,000 to $800,000 of the project, with Wal-Mart paying the remainder.