Cedar Rapids officials say they’ve been working on multiple fronts to bring a new grocery store to the former Hy-Vee location at 1556 First Ave. NE.
According to Bill Micheel, the city’s economic development and development services director, city staff initially had conversations with a grocer that operates 10 “price-impact” stores in the Kansas City market. In partnership with the grocer, the city applied for a $250,000 USDA Healthy Food Financing Initiative (HFFI) Food Access & Retail Expansion (FARE) Fund grant to support the operator in purchasing coolers, freezers, shelving and other equipment needed to open a store at this location.
“We expected to receive notice of grant awards in March 2025, but the announcement was delayed due to uncertainty around federal grant funding,” Mr. Micheel said.
In a parallel effort, city staff have been working with the Independent Grocers Alliance (IGA), a global nonprofit that supports independent grocery operators. According to Mr. Micheel, IGA completed a market analysis for the area served by the former Hy-Vee to better understand local demand and support recruitment of a new operator. In addition, IGA produced a profit and loss statement, including projections based on the market analysis.
“These projections are essential to help any potential operator evaluate the opportunity,” Mr. Micheel said. “IGA continues to provide assistance in identifying and attracting potential operators through IGA’s wide network of independent grocery store owners.”
A Nebraska-based grocer that operates 33 stores throughout the Midwest toured the former First Avenue NE Hy-Vee location in October, Mr. Micheel said. The Nebraska company is in the process of completing additional due diligence to ultimately make a decision about operating a store in the space. Mr. Micheel said the city expects the company to make a decision “in the next three to four months.”
The city has been working on a grocery store at the First Avenue location since spring 2023, when Hy-Vee first considered not renewing its lease. Despite renewing a five-year lease in November 2023, Hy-Vee announced it was closing the store in May 2024.
This update is a part of the CBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Corridor Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the CBJ.
Read the accompanying story, published in February of 2025:
Cedar Rapids officials ‘optimistic’ about attracting new grocer to former First Avenue Hy-Vee
