Anderson accepts lone bid for west side grocery, hardware stores

Ken de la Bastide, The Herald Bulletin, Anderson, Ind.
·3 min read

Mar. 29—ANDERSON — By the end of the year, there could be a new Needler's grocery store and an Ace Hardware store on Anderson's west side.

The Anderson Redevelopment Commission voted unanimously Tuesday to accept the only bid received on the project, which was from KennMar development.

The conference room of the Anderson Economic Development Department was full of both supporters of the project and those with questions about the planned development.

Commission member Perry Washington said after an ARC executive session that safeguards were being put into place to protect the city's planned $7.2 million investment.

"We're not putting money into anyone's hands," Washington said. "This is an ability to get two stores on the west side."

He explained the ARC is providing $7.2 million to the Anderson Community Development Corp., which will be the conduit for the funding to KennMar.

The memorandum of understanding specifies that KennMar will pay $500,000 for the building and invest an additional minimum of $1.5 million.

"There will be no money released until phases are done and the project completed," Washington said. "We're going to work with Needler's and the developer."

He said the intent is for the grocery and hardware store to be used to attract other investments in the area.

Allie Rosenbarger with KennMar said the development company and Needler's will equally own the grocery store property, and KennMar will own the Ace Hardware property.

She said a 10-year lease will be signed and if Needler's tries to break the lease, it would have to pay a large fee.

"There is motivation for them to keep the business going."

She said KennMar includes community involvement in its large-scale development projects.

Anderson Mayor Thomas Broderick Jr. said at the meeting that there have been conversations with KennMar about a vision for larger development plans in the area.

"They're a strong developer with a good working relationship with national retail companies," he said.

Rosenbarger said once the legal documents are finalized in April, construction work will start in June. The hope is to have the stores open by the end of the year.

When asked about the city providing $7.2 million in tax increment financing revenues, Rosenbarger said the deal could not have been completed without the city's support.

She said the money from the city is being spent for building improvements for the two tenants.

ARC member Danny McGhee said the Redevelopment Commission is investing money in the community.

"We're working to put a solid plan together," he said. "This is a grocery store for the entire community. We have to start somewhere."

Broderick said it has been a priority of his administration to have a grocery store at the former Marsh store that closed in 2017.

"This is a real game changer for Anderson, as a whole," Broderick said in a news release, "as well as the westside corridor.

"I cannot overemphasize how pleased I am to welcome KennMarr as the leader of this project."

Brent Benge, president and CEO of KennMarr, noted that the closest grocery store to the location is 3 miles away, and the nearest hardware store is 5 miles away.

"We are excited to work with the city of Anderson to bring retailers like Needler's and Ace Hardware to this community."

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.