T-R PHOTO BY MIKE DONAHEY The lot which formerly housed Anytime Fitness and other businesses was a beehive of activity Tuesday afternoon as electric utility line workers from ARC were on the job on the site’s northeast corner. Nearby, trucks from Lansing Brothers Construction of Luxemburg were hauling away debris from building demolition.

The Marshalltown City Council has set an Oct. 28 public hearing for a major development agreement with businessman Jose Angel Regalado.

The agreement will include a maximum of $850,000 in economic development payments.

Regalado is proposing the construction of a new grocery store and restaurant downtown at 107 N. Center St. — a $3.64-million investment according to a memo city administrator Jessica Kinser sent to city councilors.

“It would employ upwards of 100 individuals in the grocery store and restaurant,” Kinser said at the Oct. 14 meeting.

The buildings were demolished earlier this month and debris removed.

Regalado and family have owned and operated the local Abarotes Villachueto grocery for a number years at the intersection of North First Avenue and East State Street.

The buildings also fell victim to the tornado and were demolished last week.

The Regalado family also owns and operates the local Impala Ballroom on Lincoln Way.

Kinser told the council Regalado requested assistance from the city.

Consequently, Kinser proposed to council it approve a 10-year 100 percent rebate of incremental taxes, not to exceed $850,000.

“Regalado will still have to pay property taxes annually, but what is new or increment would be rebated back to him,” Kinser said. “So we are looking at returning quite a bit more value to that site and downtown. The $850,000 is met only if that is the amount of incremental taxes paid over a 10-year period.

Kinser emphasized during the council meeting the city is not giving Regalado a grant.

“He gets no money upfront, the tax increment financing comes in on the back end after taxes are paid,” she said.

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Contact Mike Donahey at 641-753-6611

or mdonahey@timesrepublican.com