The city of Austin could conclude its purchase agreement to purchase the Oak Park Mall by the end of the year, according to Finance Director Tom Dankert.

Dankert asked the Austin Port Authority Monday to schedule a tentative meeting on Dec. 23 to approve the purchase agreement once the deal comes through.

The city of Austin and the port authority announced a $3.2 million deal to purchase the Oak Park Mall site in October from Chicago-based Martin Graff of M H Graff & Associates Inc. and Martin Goldman of M J Goldman & Co. Ltd., the businessmen behind Oak Park Mall Ltd. Partnership and Oak Park Mall Land Ltd. Partnership.

The Hormel Foundation granted the $3.2 million to the city to purchase the site, while the city is expected to demolish most of the mall to make way for a 60,000- to 90,000-square-foot Hy-Vee grocery store.

The city’s purchase agreement includes acquisition of the entire mall facility — except Shopko, which is owned by the retailer — located at 1301 18th Ave. NW and an additional out lot located along 18th Avenue Northwest. That includes the mall property, Younkers and CineMagic 7.

Austin doesn’t own the mall yet, however. City officials must work out a purchase agreement to buy the property with the mall’s current landlords, as well as with Shopko, Younkers and Cinemagic 7 representatives who all have agreements with the landlords as well.

The port authority approved a $500,000 shift in money toward an Oak Park Mall project fund during its meeting on Monday.

Institute updates

The port authority also approved budget shifts to the upcoming $28.5 million Hormel Institute expansion project.

Project manager Jon Erichson told the authority officials had worked out budget specifics and asked members to approve $359,000 in various change orders to contracts the authority has with construction companies.

“We are making progress on time,” Erichson said. “We’re still on budget, too.”

Construction started on the Institute expansion earlier this year.