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St. John Council hears plans for Jewel-Osco store

Del DeMao discusses plans to convert the vacant Kmart building into a Jewel-Osco store with the St. John Town Council on Dec. 23.
Michael Gallenberger
/
Lakeshore Public Media
Del DeMao discusses plans to convert the vacant Kmart building into a Jewel-Osco store with the St. John Town Council on Dec. 23.

More details about St. John's new Jewel-Osco store were shared during a special town council meeting Monday. DeMao Retail plans to keep a majority of the vacant Kmart building and convert it into a 70,000-square-foot "premium" brand store.

Del DeMao told council members it will be similar to a store Jewel recently opened in Diamond, Illinois. "If anyone's been to a newer Jewel-Osco in the city of Chicago, you've seen pre-prepared foods and items that are there for take-home, to go," DeMao said. "There's also going to be a Starbucks in the store, which is part of something that they offer, so you can get your coffee or drink, whatever you want, right when you start your shopping. But it's going to be their higher-end offering."

The store is also expected to include a drive-through pharmacy, an indoor seating area for dining and possibly and outdoor dining area.

DeMao hopes to have plans submitted to the state by early summer — with construction to start sometime in 2025, preferably by the end of September. He said his company has a 20-year commitment from Jewel, if it can get everything done.

"The biggest thing is getting over some of these hurdles to make sure that all of our construction numbers come in line," DeMao said. "That's really the biggest challenge with the project is, since COVID, construction pricing, as everyone is very aware of, is really expensive right now."

DeMao believes that finding a use for the former Kmart will trigger more improvements in the area. "Any time you make this improvement in that trade area, it's going to just fix stuff across the street, down the street, and it's also going to get more retailers to look at the town of St. John and get more critical mass in here, which is all going to be a positive for your tax base," DeMao said.

He said the store would be Jewel's first new location in Northwest Indiana in more than 20 years.

Town Manager Bill Manousopoulos said the town plans to offer some assistance. "There will be some tax incentives," Manousopoulos told Lakeshore Public Media. "It's a $26 or $27 million building build."

As part of that process, the redevelopment commission Monday agreed to create an allocation area for the old Kmart within an existing economic development area.

Manousopoulos said that will provide a TIF refund for infrastructure, including additional access to 96th Place.

It was part of a larger set of amendments that also included the removal of 28 under-performing properties from the TIF district, the addition of the town's Family Express location and the creation of another new allocation area for the southeast corner of U.S. 41 and 93rd.

Michael Gallenberger
/
Lakeshore Public Media
Del DeMao of DeMao Retail joins St. John officials in celebrating plans to bring a Jewel-Osco store to the former Kmart building, following a special town council meeting on Dec. 23.

Michael Gallenberger is a news reporter and producer that hosts All Things Considered on 89.1 FM | Lakeshore Public Media.