Hy-Vee’s Dollar Fresh makes project plans for Monticello

     It’s official! Dollar Fresh, a Hy-Vee band grocery store, is coming to Monticello!

     The news was announced during the Monday, March 1, Monticello City Council meeting.

     It was also an exciting meeting for another reason. This was Russ Farnum’s first council meeting as the new Monticello City Administrator.

     On the council’s agenda for the evening were several items related to the development project associated with Dollar Fresh. The council held a public hearing, discussed, and approved the development agreement with BR3 Development LLC. Brian Ridge with BR3 and Ryan Fitspatrick, a broker with the company, were present via Zoom.

     “This is not a dollar store,” prefaced Ridge. “This is a small-town grocery store.”

     The Dollar Fresh facility will be built at the intersection of E. First Street and N. Main Street once the demolition of the former Energy building is complete. The building is expected to be approximately 27,500 square feet. Approximately 17.5 acres was purchased by BR3. The grocery store will be built on roughly 6 acres, and BR3 plans to gift the city 11.5 for greenspace and trail development.

     The city will make 30 semi-annual tax increment payments not to exceed $715,050, based on a minimum assessment of $1.25 million going on the tax rolls.

     As for the timeline on the project, BR3 said that depends on when items can be removed from the Energy building and ground cleanup can take place. They estimated that within the next 90 days, demolition will begin. They anticipate the store opening in early 2022.

     “A substantial amount of excavation has to occur,” said Fitzpatrick. “We’re currently working through a grading plan.”

     Council member Dave Goedken admitted he had some reservations concerning the tax abatements agreed upon. However, he realizes that those taxes would never come into the city if the project never took place.

     The pond that sits behind the Energy building will also eventually increase in size, and move away from the building. BR3 said they also plan to take some fill from the southeast side of the pond for use with the project.

     City Attorney Doug Herman shared with the council that the property is expected to generate $11,281 in property taxes. That’s almost $4,000 more in property taxes that the current commercial and former residential property (to the north) generate now as they sit.

     Mayor Brian Wolken clarified that the city is not planning to abate 100 percent of the taxes, but 100 percent of the tax increment.

     “I hope we’re not setting a precedence with the abatement,” commented Goedken.

     Wolken explained that the Dollar Fresh project “is quite a bit more sizeable” than past projects where the city offered tax abatements. He said the developers also have a lot of work ahead of them in terms of demolishing a current building before they can even start construction.

     “It’s easy to justify,” Wolken said.

     “And they’re giving us 11 acres back,” added Council member Chris Lux.

     “We just want to thank all those who were involved with this,” noted Fitzpatrick. “It’s wonderful to work with you and we’re excited to bring this project to Monticello. It’s a daunting task, but we know we can do this.”

     A public hearing was also held concerning expanding the city’s Urban Renewal Area and TIF District. This would include the property being purchased by BR3, as well as La Hacienda, and property behind the Mexican restaurant for additional development.

     City Clerk Sally Hinrichsen said no comments were received from the county or school district on this matter.

     The council approved the amendment to the TIF District.