Town Council approves $25M grocery store renovation plan for vacant Kmart property

A major redevelopment project is set to breathe new life into a long-vacant property in St. John, Indiana, as the Town Council moves forward with plans to transform the old Kmart site into a grocery store. During the Redevelopment Commission meeting on April 23, 2025, council members discussed the significant financial implications of the project, which is expected to involve an investment of at least $25 million.

Jimmy Shanahan from the DeMello Group, representing the developer Arrow Alchemist, emphasized the importance of the proposed tax incentives, stating that without them, the project would not proceed. The redevelopment aims to revitalize a property that has sat unused for nearly 14 years, with plans to renovate the existing structure rather than demolish it. This approach not only preserves the building but also enhances its value, with the total investment projected to reach around $31 million, excluding inventory and equipment costs.

The project is anticipated to create approximately 12 to 15 months of construction jobs, with completion expected by mid-2026. In addition to the grocery store, plans include the construction of a new service road to improve access and safety for shoppers, costing around $5.6 million. This road will connect to a stoplight, facilitating safer entry and exit for customers.

Council members expressed enthusiasm for the project, highlighting its potential to significantly increase the town's revenue—projected to be about 50 times the current income from the site. The meeting underscored the council's commitment to transparency, addressing community concerns about the financial implications of the redevelopment.

As the project moves forward, it represents a significant step toward revitalizing the area and enhancing the local economy, with council members eager to see the positive changes unfold.