Cedar Rapids leaders are “actively pursuing” a Kansas City-area “price-impact grocer,” about operating a new grocery store at the former Hy-Vee store on First Avenue East, city officials confirmed this week.
A formal agreement hasn’t yet been reached with the grocer, which wasn’t identified by city officials.
However, officials connected representatives of the Kansas City grocer and Hy-Vee for a tour of the former store, officials said.
In addition, the city is seeking to support the Kansas City-based grocer with a $250,000 grant application through the America’s Healthy Food Finance Initiative FARE Fund, funded through the 2014 Farm Bill and administered by the U.S. Department of Agriculture (USDA), to “assist with initial capital costs of freezers, refrigeration units, coolers, shelving, and other necessary equipment to get the store back up and running.”
The Fare Fund, launched in June of this year, is designed to increase access to healthy foods in communities underserved by grocery stores.
City staff submitted a Funding Inquiry Form, the first step in the application process, on Oct. 14, and grant administrators determined that the proposed project is eligible for grant funding and invited the city to submit a full application.
Grant applications are due Jan. 6, 2025, and awards will be announced in the late winter or early spring of 2025, city officials said.
In the meantime, city officials have launched several other initiatives to help fill the void caused by the closure of the Hy-Vee store, which was effective June 23.
According to communications manager Phil Platz, city staff are exploring the concept of a nonprofit consortium with local partners and stakeholders, should a full-service private grocer not be secured.
“We are pursuing all options simultaneously until a final solution is achieved,” officials said in an email to the CBJ.
Cedar Rapids officials: Time to move ahead from Hy-Vee First Avenue store closure
In addition, after the Hy-Vee closure, the city held a stakeholder meeting, including Neighborhood Association representatives, nonprofits, and Linn County, to identify immediate needs, such as grocery delivery, transportation, check cashing, mail, specific pharmacy capabilities, and other service needs and resources.
City staff also met with Hy-Vee representatives to collaborate on solutions to immediate needs, and Hy-Vee provided resources, including free transportation, grocery delivery, pharmacy delivery, lease flexibility, and increased food bank assistance through partnerships with local organizations.
In August, city staff and volunteers distributed door hangers within a half-mile of the former store, detailing available pharmacy, food access, and transportation services. The hangers also advertised city-hosted Neighborhood Get-Together events, held on Aug. 15 at Polk Alternative and August 29 at Johnson Academy.
The events provided residents with information on food and prescription resources. City staff, along with HACAP, Linn County Public Health, New Pioneer Food Co-op, Mission of Hope, and Foundation 2, attended the events, and officials said “community feedback was positive” regarding the city’s response to the store closure, with residents expressing a strong need for a grocery store and pharmacy in the area, as well as interest in improving walkability along First Avenue.
The events also helped gather input to inform the city’s First Avenue East Micro-Area Action Plan. After the store closure was announced, city leaders accelerated the timeline for the Action Plan, which had already been in the works.
The plan’s goals include addressing barriers to private development and encouraging reinvestment in the area, officials said.
To gather input on the plan, city staff engaged local business and property owners, the College District Board, nearby higher education institutions (including students and administrators), and neighborhood associations, in addition to holding in-person and virtual Equitable Engagement opportunities such as the Neighborhood Get-Togethers.
The city also distributed an online survey, expanding the reach to nearby residents and property owners via mailed QR codes and paper copy instructions.
Mr. Platz said an interdepartmental team is gathering feedback to inform goals and action steps for the plan, and the city will hold an open house this winter to review a draft of the plan.
Finally, Hornbill Asian Market said in October it is establishing a new location at 1445 First Ave. SE in Cedar Rapids, near the now-closed First Avenue Hy-Vee, in a move that’s hoped to help address growing concerns over food access in the area.
According to a release from Skogman Commercial Real Estate, Hornbill Asian Market’s new retail space will offer a variety of fresh produce, specialty groceries, and authentic Asian products, “meeting both practical and cultural food needs.”
A timeframe for opening the new market hasn’t yet been announced.
“We have made substantial progress to support our neighbors affected by Hy-Vee’s closure, with several helpful short-term efforts already making an impact,” Mayor Tiffany O’Donnell said. “The addition of Hornbill Asian Market is promising, and our discussions with potential grocers have been encouraging. We will continue to need Hy-Vee’s support, along with strong partnerships and community engagement, to restore essential services in this area. I look forward to continued collaboration with all stakeholders to meet our residents’ needs.”
Hy-Vee officials said this week they had no new comments on the situation.
