As construction on the old Hy-Vee building nears completion, Verona, Wisconsin-based firm Slaby and Associates has two potential tenants for a proposed outlot building on 18th Avenue Northwest.

According to City Administrator Craig Clark, Slaby and Associates, who own the old Hy-Vee, approached the Austin Port Authority about pending agreements with Mexican food chain Qdoba and cellular service provider T-Mobile.

“We had a fast casual restaurant requirement in the purchase agreement, so that was a condition (Slaby and Associates) had to fulfill,” Clark said, referring to the purchase agreement of the old Hy-Vee building, which gave Slaby and Associates the option to build the outlot building on the parcel near O’Reilly Auto Parts. “The diagram of our agreement indicated a 4,200 square-foot building that would be required to be the fast casual restaurant. They came back with two perspective tenants of Qdoba and T-Mobile. Obviously T-Mobile is not a fast casual restaurant, so they asked for some flexibility to put those two tenants together.”

Under the provision, any development within the west 150 feet of the outlot building was required to be a restaurant at the time of opening.  As an example, the provision was shown as 4,200 square feet, though the agreement contained no specific provision for square footage or how it could be divided, so long as the west most 150 feet was a restaurant.

In a letter to the Austin Port Authority, Clark said Slaby and Associates “has requested a modification of this provision with the reality that they have two tenants interested in the development of the west side of the parcel but do not collectively meet the current restriction.”

Clark also said Slaby and Associates believes they can add more to the outlot parcel and plan to build two buildings after expressing  “some concern with the volume of traffic two restaurant providers might have in being on the west side together” and saying “it would be more advantageous to have the restaurant traffic split between the east and west buildings on the parcel.”

The Port Authority approved Slaby and Associates request, allowing for Qdoba and T-Mobile to be located in the west building planned for the outlot parcel once agreements have been reached. Clark said Slaby and Associates are still searching for potential tenants for the east building, which will also include a restaurant.