The home improvement store that now owns the former Kmart building may not be moving in anytime soon.

Craig Hoium, city of Austin community development director, told the Austin Port Authority Wednesday that Runnings, a Marshall-based retailer, has reached a stalemate in negotiations with Kmart/Sears Holding Co., whose lease of the property lasts through November 2016.

Runnings purchased the building, at 1400 18th Ave. NW behind Applebee’s, in September 2012 for $3 million, but still has to reach an agreement with Sears.

Runnings, founded by Norman Running in 1947 as an automotive supply store, now sells everything from farm equipment to sporting goods. The company has 31 stores throughout Minnesota, the Dakotas and Montana, according to its website, and employs more than 1,000 people.

The Herald couldn’t immediately reach Runnings CEO Dan Herrmann for comment. Herrmann said in February there is definitely a desire to move to Austin.

In July 2012, Sioux City-based Bomgaars expressed interest in buying or leasing the building. The Port Authority considered the retailer’s request for a $150,000 loan until Runnings stepped in and bought the building without a subsidy from the city. The building has been empty since Kmart closed in May 2010.

 

—Kevin Coss contributed to this report.