Hy-Vee project in Clear Lake put on ‘pause’

by Marianne Gasaway

Construction of a Hy-Vee store in Clear Lake is among “several” projects the grocery retailer has put on pause.

“Right now, we are still working on the scope of the project, which is why work has paused,” said Dawn Buzynski, director of communications for Hy-Vee.  She declined to elaborate about conditions which prompted work to come to a halt in March.  

It was Fall 2021 when the City of Clear Lake confirmed Hy-Vee would be building in Clear Lake.  Clear Lake City Administrator Scott Flory told the City Council that discussions with Embree Development Group, of Georgetown, Texas actually started over a year prior.  A letter of intent was approved at the Sept. 21 Council meeting for the development of a six-and one-half acre parcel of property in the Willow Creek Urban Renewal Area, located north of Highway 18 near North 20th Street.  The proposed project was an $8 million, 50,000 square foot commercial and retail building with a surface parking lot on approximately six and one-half acres.  The city would offer an incremental property tax rebate for 10 years not to exceed $850,000 and a $350,000 offset to be used by the developer to finance municipal water and sanitary sewer service main extensions and service laterals. An additional $400,000 would be provided for the relocation of a 60-inch city storm sewer line.

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Last week the Des Moines Register published an advertisement placed by Hy-Vee which addressed various changes in company direction.

Under the heading, “Economic and Retail Industry Challenges Lead to a Shift in Strategy for Hy-Vee,” the company attributed pauses to “construction costs hit record highs.”  

Earlier this month, Hy-Vee canceled plans to build several stores in Minnesota, according to the St. Paul Pioneer Press. The company put its land in West St. Paul, Farmington, Blaine, Maple Grove and Chaska up for sale, the newspaper reported.  

Hy-Vee’s advertisement went on to say it will ask up to 500 of its employees to move from corporate-level jobs to retail positions at its stores.

The move comes after the company already eliminated 121 corporate-level positions in March.

“As the company looks closer at the retail landscape it’s making moves to be as lean as possible and moving many of its leaders into stores to serve its customers,” the advertisement stated.

Currently, Hy-Vee operates more than 285 stores and is in the process of expanding to the southeast United States.

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