City: Oak Park Mall deal could come soon

Published 10:25 am Thursday, January 29, 2015

The city continued inching forward on plans to bring a new Hy-Vee grocery store to the Oak Park Mall site, but the deal is still not finished.

Port Authority members got an update Wednesday on contract negotiations with Shopko, Cinemagic 7 and Younkers during a closed session.

Though a deal hasn’t been reached, Finance Director Tom Dankert said city officials are optimistic the purchase agreement to buy the Oak Park Mall site will conclude soon.

Email newsletter signup

On Wednesday, the Port Authority contributed $250,000 toward the Oak Park Mall project after the Mower County Board of Commissioners declined to help fund economic development through a tax increment district loan.

The city announced in October it would buy the mall site for $3.2 million in funds granted by the Hormel Foundation. The city plans to demolish much of the mall, save for Younkers, Cinemagic 7, Anytime Fitness and Shopko, to make way for a new 60,000- to 90,000-square-foot Hy-Vee store.

The port authority has already allocated $500,000 toward the project, while the city of Austin has contributed $750,000 to the $3 million or so cost to demolish most of the Oak Park Mall.