Hy-Vee puts new Coralville store on hold

CORALVILLE - Construction of a new Hy-Vee Food Store on the border of Coralville and North Liberty has been put on hold by the West Des Moines company, the latest delay for a project that was originally scheduled for completion this year.

'We have decided to suspend construction on our second store in Coralville as we continue to evaluate the best store format and design that will meet customers' needs in this growing area,” said Tara Deering-Hansen, Hy-Vee group vice president of communications, in a statement.

'We remain committed to this project and the Corridor community, and we plan to move forward with construction at some point in the future.”

Hy-Vee in February said the store would not open until the spring of 2017, citing the need to accommodate changes in its interior design.

When foundation plans for the store at Forevergreen Road and Ridgeway Drive were submitted to the city, it was expected to be a 95,000-square-foot building. That would make it slightly larger than the Hy-Vee at 1720 Waterfront Dr. in Iowa City.

A Hy-Vee convenience store and gas station opened earlier this year west of the supermarket's location.

If and when it is constructed and open for business, the second Coralville Hy-Vee will compete with a Fareway in North Liberty, Wal-Mart in Coralville and a 17,826-square-foot Aldi store at 2750 Heartland Dr. in Coralville that opened in November.

Hy-Vee, which operates a store at 1914 Eighth St. in Coralville and three stores in Iowa City, bought the land for the second Coralville store more than five years ago. The company said it was responding to population growth in Coralville and North Liberty.

From 2000 to 2010, North Liberty was the second-fastest growing city in Iowa. Since 2000, the community has experienced a population increase of 125.55 percent.

A special census conducted in 2015 determined that North Liberty's population is 18,228, a 36 percent boost over the last five years.