Redevelopment Commission approves contract with west side grocery

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

May 15—ANDERSON — The contract for the construction of a Needler's grocery store and an Ace Hardware store on Anderson's west side has been approved

The Anderson Redevelopment Commission (ARC) voted Monday to accept the contract with KennMar development, the only proposal received earlier this year.

Tom Pittman, attorney with Barnes & Thornberg, explained the contract between the ARC and KennMar doesn't take effect until a signed contract is reached between the developer, Needler's and Ace Hardware.

Pittman said the developer has to commit to operating the grocery store and hardware store for a minimum of 10 years.

The stores have to be opened by July 1, 2024 or KennMar will be in a breach of contract. The developer hopes to open the stores before that date.

Pittman said no money from the ARC will be released until the work is completed and reviewed by architects for the developer and ARC.

He said if the stores are not operated for one year the ARC gets 100% of the investment by KennMar and the amount declines by 10% for each subsequent year the stores are not operated.

Pittman said KennMar has agreed to invest $1.5 million in the project, $500,000 at the start.

The ARC is providing $7.2 million to upgrade the former Marsh store on Nichol Avenue.

"The city would not spend the money until the developer has invested $1.5 million," Pittman said. "The spending of the money will be closely monitored."

He said KennMar has the financial ability to fund the project and the project will revitalize the city's Nichol Avenue corridor on the west side.

"They have a proven track record of getting things done," Pittman said.

Allie Rosenbarger with KennMar said the cost of remodeling the 40,000 square foot building is based on the cost of other projects the company has completed.

"If the project costs less, we will draw less from the city," she said. "If the project costs more, we're responsible for the costs."

Perry Washington, an ARC board member, said KennMar has been made aware of the city's Fair Share ordinance that requires 15% of the employees be residents of Anderson.

"We're creating jobs for Anderson residents," he said. "This is an opportunity to hire people from the city."

Washington said the ARC is looking at the redevelopment of the former Marsh store as a "seed" for further development on the south side of Nichol Avenue.

The administration of Mayor Thomas Broderick Jr. has made it a priority to open a full-service grocery store at the site since the store closed in 2017.

Greg Winkler, executive director of the Anderson Economic Development Department, said the plans are for a 25,000-square-foot Needler's store and 15,000-square-foot Ace Hardware.

He said the store needs a new heating and air conditioning system, flooring, electronics and plumbing.

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