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Hy-Vee store still planned for Farmington

Hy-Vee could not confirm a construction timeline although it still plans to open a store at Vermillion River Crossings. Kara Hildreth / contributor

A Hy-Vee grocery store is still on the horizon for Farmington.

Hy-Vee is excited to open in Farmington as it continues to open more locations across the Twin Cities, according to Tara Deering-Hansen, communications vice president for Iowa-based HyVee.

Farmington Community Development Director Adam Kienberger said the project will begin when Hy-Vee seeks final approvals for site plans and building permits.

Hy-Vee would not confirm a timeline to break ground or answer what order Farmington is on the construction project list in the Twin Cities. The grocer just opened a store in Cottage Grove and others are on the way.

Last year Hy-Vee, Inc., purchased land in the Vermillion River Crossings development off Highway 50. The land was bought for $2.8 million after the Farmington City Council approved a preliminary site plan. The transaction included Hy-Vee buying the three parcels from Dougherty Markets of Minneapolis.

Hy-Vee will open doors on the west side of the current McDonald's restaurant on Highway 50. The grocery store is proposed to be 57,000 square feet. That is two thirds the size of the Lakeville grocery market off Pilot Knob Road that boasts 91,000 square feet of retail space.

The grocery market will include the typical produce, dairy, bakery, deli, seafood and meat departments, along with organic foods and ready-to-eat meal choices. The store offers customers other amenities such as dry cleaning, postal, floral and pet care.

Plans call for a 4,100-square-foot convenience store with a four-bay car wash to be housed off of Dushane Parkway and Highway 50.

A restaurant will be connected to the grocery store and a coffee shop will be attached to the convenience store. A pharmacy will be connected inside the Hy-Vee and will offer customers a drive-up lane and possible clinic space.

Nearly 12 years ago, the city built the bridge, roads and infrastructure into the Vermillion River Crossings development with some grant funds. The city incorporated the bill for these tax assessments into the city budget.

The city entered into a business subsidy agreement on the plots of land Hy-Vee purchased. That means the city will continue to pay off the assessments and no new assessment taxes will be levied against Hy-Vee.

As part of the agreement, within two years of opening the new store Hy-Vee will offer 20 full-time jobs with a $13 an hour wage, excluding benefits.

The city does not own the land but is working to remove the assessments to facilitate the private sale of the land for development.