Hy-Vee is exploring construction of a 1 million-square-foot distribution center in Austin, Minn., the first outside Iowa for the Des Moines-based supermarket chain.
"The site in Austin is being considered for the project due to its centralized location in our eight-state territory and interstate access, as well as the community's ample workforce," Hy-Vee said in a statement.
The company's Iowa distribution centers are in Cherokee and Chariton; the one in Ankeny, a Des Moines suburb, is operated through a subsidiary. The Chariton location is also 1 million square feet. The Cherokee site's square footage is 650,000.
Construction of the Austin center's first phase could begin in 2019. The building would be on a 150-acre site north of Interstate 90 on the western edge of Austin. The land is not yet owned by Hy-Vee.
"This is a fantastic opportunity for Austin, and we are excited to continue our great relationship with Hy-Vee," said Austin Mayor Tom Stiehm.
Each of Hy-Vee's distribution centers employs several hundred people, according to Hy-Vee spokeswoman Tina Potthoff.
The project also is expected to have a significant economic boost for Austin's local contractors, as well as the city's tax revenue. Austin is a city of 25,000 about two hours south of Minneapolis and home to Hormel Foods.
Hy-Vee has not yet been offered any incentives to build the project, according to the Des Moines Register.
