All-In Grocers re-audit released, no improprieties found related to Waterloo city funds

WATERLOO — A re-audit of the former All-In Grocers relationship with the city of Waterloo has found no improprieties.

The Auditor of State's Office on Thursday released the re-audit, which was requested after the long-awaited city-backed grocery store at 221 Franklin St. in Waterloo suddenly closed its doors after less than a year in business.

The store had received incentives from the city.

State Auditor Rob Sand reported the re-audit did not identify any improper disbursements related to the All-In Grocers project developer agreement. He also noted the re-audit was limited in scope and said it wasn't known if additional work would have identified additional matters.

Even so, the audit recommended the city strengthen internal controls, such as revising its conflict-of-interest policy.

Mayor Quentin Hart welcomed the report and stood by the project as a way to address food deserts and food insecurity in the city.

“The audit confirms what we knew all along, that there was no wrongdoing,” Hart said. “Unfortunately, time and energy were spent chasing a baseless political narrative instead of advancing solutions for a real problem: food insecurity. While others were focused on a witch hunt, we were focused on bringing fresh produce and healthy options to families who deserve better. It’s time we stop politicizing progress and start prioritizing people.”

All-In's development company, Central Property Holdings, received $585,549.05 in grant funding from the city. In addition, the city paid another $400,000 to acquire 207 Franklin St., and $200,000 to Iowa Finance Authority for a borrower’s settlement for the All-In Grocers project.

"We determined all these payments were approved by City Council with either the original agreement or an amendment to the agreement," the audit states.

Auditors also received documentation for All-In owner Rodney Anderson and didn't find any personal payments to him or payments for any personal projects not related to All-In Grocers, the report states.

The audit noted that All-In funds received from an out-of-state credit union that helped finance the project had been backed up with documentation of work performed on the store.

The audit also looked into claims that contractors or subcontractors on the All-In project had done work in the homes of city officials or city employees — a claim to which Anderson told auditors “that is a bunch of bulls--- and I’m starting to get pissed off.”

The audit didn't find any instances where work was performed in any of the personal residences as part of the All-In Grocers project or using funds from the project, the report states.

During the audit, a review of six city employees found that four didn't have the required conflict of interest forms on file with the city, and another didn't have an updated form, the audit report states. It also found city policy doesn't require conflict of interest statements to be updated.

The city agreed to require updated conflict of interest forms, according to the audit.

Store expected to re-open under new ownership

Central Property Holdings entered into an agreement with the city in 2017 to build the grocery store on Franklin Street. The city contributed $400,000 toward purchasing the property, and development was to begin within three years and be finished 12 months later.

The city also would rebate the property taxes.

Another $500,000 grant came in 2018 as an amendment to the agreement, and the city's human resource director became a minority partner in the project without voting privileges.

Deadlines for the project were changed due to construction delays attributed to a shortage of building materials, unexpected rubble found under the building site, the COVID-19 pandemic, and financing issues.

  Buy Photo

"We were informed the delays for the project were mostly due to funding given that the local banks were not willing to invest in the project. Mr. Anderson had to seek funding from out-of-state institutions, and it took a while to secure the capital needed for the project size," the audit states.

In 2021, the city approved an additional $136,983 grant based on the subsurface obstructions and debris.

The store opened in October 2023 and closed in September 2024 as Anderson decided to sell the business.

The store remains closed, but Hart said it is expected to reopen.

“A new, experienced developer is actively working to acquire the property with plans to reopen it as a full-service grocery store later this year," Hart said. "This incoming ownership brings a renewed sense of stability, long-term commitment, and a strong vision for success — signaling a promising new chapter for the community."