Despite the promise of up to $1 million in economic development incentives from the city of Monmouth, Hy-Vee will not be developing the former Shopko into a grocery store.
City Administrator Lew Steinbrecher said Hy-Vee confirmed with him they no longer to plan to renovate the 60,000 square foot building at 1190 N. 6th St.
Instead, Hy-Vee has listed the property for sale with a real estate agent in the western suburbs of Chicago. The asking price is $1.8 million.
“This decision was made despite a $1 million TIF tax incentive offered to Hy-Vee in 2020 to entice them to proceed with this grocery store project in Monmouth,” Steinbrecher said.
Hy-Vee Inc. purchased the property for $1.3 million in December of 2020. That was after the city established the Tax Increment Financing district that would have reimbursed the company for up to $1 million in eligible costs including acquisition of the building and replacing the roof.
TIF districts capture incremental property tax revenue to provide incentives for new businesses in blighted or underdeveloped areas.
Steinbrecher told TSPR the TIF district still encompasses the property.
“Any interested party in purchasing this property needs to contact the city before actually before actually buying the property if they want the acquisition cost to be eligible for a TIF rebate,” he said.
The Monmouth Shopko closed in 2019, after the company declared bankruptcy.
The location is adjacent to two other full-service grocery stores at the intersection of U.S. Route 34 and 11th Street in Monmouth.
At the time Hy-Vee purchased the former Shopko, the company said a market analysis showed another grocery store would be viable in town. But many people in Monmouth disagreed the community could sustain another one.
TSPR asked Steinbrecher what the city would like to see in the former Shopko building.
“The city predominately would prefer to see a general merchandise retail store like ShopKo, but understands the challenges associated with recruiting such a commercial business,” he said.
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