After opening six sprawling supermarkets in the Twin Cities since 2015, Hy-Vee has decided not to build one in Water Tower Crossings development in White Bear Lake.
“After further evaluation, we have decided not to move forward with our proposed store in White Bear Lake,” the company said in a statement. “While the location presented unique opportunities, a combination of factors, including rising costs, resulted in this site no longer meeting our needs.”
Bids for construction costs came in higher than expected. Des Moines-based Hy-Vee was also responsible for half the cost of installation of a traffic light on Centerville Road, according to city officials.
The location represented an unusual layout compared to Hy-Vee’s other Twin Cities’ stores. Stores in Brooklyn Park, Eagan, Lakeville, New Hope, Oakdale and Savage range from 80,000 to 90,000 square feet. The White Bear Lake store was going to be a two-story, 70,000-square foot structure that included a fitness center, restaurant and pharmacy.
A Cub Foods owned by Kowalski’s sits across the street from the 5-acre site.
Mike Oase, Kowalski’s vice president of operations, said in a statement, “Hy-Vee’s decision makes sense given the complexity of the site and amount of additional traffic it would have added to Centerville Road and Highway 96.”
The company will open in Cottage Grove in August and Shakopee in the fall. Seven additional Twin Cities locations are planned.