Cottage Grove sells Home Depot building
Redevelopment at the Gateway North shopping complex is making progress after years of planning and discussion.
The city of Cottage Grove finalized the sale of the Home Depot property to developer Grove-Rainbow on Monday afternoon.
“The city has done everything it can to facilitate development on that site,” Community Development Director Jennifer Levitt said.
The city purchased the property for about $2.25 million in November, and sold the building for $1.95 million.
The price difference is considered a business subsidy for retail space the developer will lose with Hy-Vee purchasing and demolishing the former Rainbow Foods building and adjoining space.
Plans for development at the Home Depot site have not yet been announced. Mayor Myron Bailey said he is planning to talk with the developer and the future of the site should become clearer with the paperwork completed.
“It’s 100 percent in the developer’s ballpark now,” Levitt said of lining up tenants for the building. The city would review building permits or site plans as needed.
Hy-Vee already has started work on the former Rainbow building nearby, and the grocery store is slated to open by Oct. 1, 2017.