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HomeMy WebLinkAbout2015-12-08 PACKET 04.04.A. TO: Economic Development Authority FROM: Jennifer Levitt, Community Development Director/City Engineer DATE: December 7, 2015 RE: Hy-Vee Business Subsidy Agreement Background/Discussion As redevelopment of the Grove Rainbow Plaza continues to take shape and more engineering details continue to be known, additional and unanticipated improvements are becoming necessary. On November 10, 2015 the EDA approved the business subsidy to Hy-Vee, Inc. for the relocation of Merchants Bank. As detailed site plans for the Hy-Vee redevelopment are nearing completion, which includes the relocation of the proposed gas station/convenience store from the southern side of the access drive off of East Point Douglas to the northern side, additional infrastructure will be necessary to enable the larger convenience store to be constructed on the former Merchants Bank site. Please see the enclosed site plan for the new gas station/convenience store layout. The new layout will provide for better flow of motorists through the site, a larger store from the originally proposed 3,100 s.f. to 4,500 s.f., and additional green space. As part of this improvement, it is necessary to provide an additional business subsidy in order to address the additional infrastructure that is necessary to support this layout. The additional business subsidy will provide for assisting to make the site pad ready, improvements to the parking lot to improve traffic flow, and provide for the necessary utility improvements related to abandoning and relocating utilities on the site. The additional business subsidy is in the value of $149,000. The revised agreement provides for the additional business subsidy and adds clarifying language for the financial distribution of funds. Recommendation It is recommended to approve the Amended Developers Agreement with Hy-Vee.