(Spencer)– The Spencer city council is getting behind a financing package that will eventually lead to an expansion of Hy-Vee in downtown Spencer.
During a special meeting Wednesday evening, the council unanimously approved an agreement in principal for a financing package paving the way for Hy-Vee to construct a new store on the former Jubilee store location in downtown Spencer.
The city will sell Hy-Vee the right-of-way to the 800 block of 1st Avenue West, as well as an east-west alley between 1st Avenue and 2nd Avenue west. The purchase price is set at 24,600-dollars.
The city considers it an urban renewal project, meaning they’ll contribute an up-front lump sum of 400-thousand dollars toward the purchase and demolition of the former Jubilee building and parking lot.
The city is expecting to receive 80-thousand dollars a year in tax revenue from the new store. Each year, the city will apply that money to the 400-thousand dollar debt until it is retired.
Mark Nelson, owner of Dynos Convenience Stores, spoke out against the city contributing Tax Increment Finance money toward the project, saying it sets a precedence. He says it will result in unfair competition against the 10 other gasoline retailers in spencer. With all costs figured in, Nelson estimates it would amount to 60-dollars per person for every man, woman and child in Spencer.
Councilman Steve Bomgaars differed with Nelson, saying the key issue is the urban renewal concept. He says the new store will serve as an anchor for other businesses in north Spencer, rather than a detriment. Bomgaars added most people he’s spoken with are in favor of the project.
Hy-Vee still has a few hurdles to clear before the project can be finalized. They must receive a special exception from the Board of Adjustment to construct a gas station in the downtown business district. The board will hold a public hearing on the matter at 8:00 a.m. Monday, June 6th.
In addition, the city council must hold a public hearing to vacate and sell the right-of-way to the portion of 1st Avenue. That hearing is set for June 6th at 6:30 p.m.
Hy-Vee hopes to start construction on the new 50-thousand square foot store and adjacent gas station yet this season. Construction is expected to take 11 months.
(Story from Danielle Hitchings of sister station KDWD Hot 100 in Spencer.).
