The former ShopKo building in Monmouth could be the site of a Hy-Vee location in the Maple City.
On Tuesday, the Monmouth City Council approved an inducement resolution and a preliminary term sheet for the grocery store should the establishment of a third TIF district get approved. This is a similar request to when a TIF district was established in 2019 that brought Fareway Foods to Monmouth.
City Administrator Lew Steinbrecher says that the incentives to Hy-Vee are based on the work being done not handled beforehand.
“The incentives will involve no use of general funds tax dollars. This will be a performance-based agreement where the Hy-Vee will only receive a rebate if, in fact, they make the investment and open up a grocery store as they presented to the city.”
Additionally, Hy-Vee will pay for all of the city’s legal expenses, up to $15,000, for the creation of the TIF district. And in adopting the city’s Inducement Resolution, the rebate of future property tax revenues will reimburse Hy-Vee in an amount not to exceed $1 million.
No TIF district has been established yet with a public hearing and additional measures needed to determine the boundaries of the final TIF district, the agreement allows the developer to begin site acquisition and work without having to wait on the district’s creation.