(SIOUX CITY, IA) Monday the Sioux City City Council approved a $3.5 million development agreement for a Walgreens at a Floyd Boulevard strip mall called Northern Valley Crossing. It's the second commercial developer to purchase a block of land in the area. Pizza Ranch is set to be finished by mid-November but the city says there's plenty more spots to be purchased.
This area may look a bit barren right now but give it a few months.
"A lot of people are looking forward to the restaurant opening here. It's a popular place and it's a great location for them," said Marty Dougherty, Economic Development Director for Sioux City.
Pizza Ranch will be the first business to set up shop in the Northern Valley Crossing strip mall and Walgreens isn't far behind. The city says the Outer Drive connector attracted businesses to the area.
"The city had this land available because of the construction of the bridge and we've got a lot of interest. Now we've got a street put in here, we've got our first two developments, we're very pleased with that and I think it also reflects the overall good strong commercial growth in Sioux city as a whole," said Dougherty.
He says commercial businesses like Walgreens and Pizza Ranch allow the City and local school districts to reap the benefits of sales tax.
Right now you pay 7% in Woodbury County - 5% goes to the state while 1% stays in Sioux City and 1% goes to the local school districts.
The city projects getting $11.3 million in sales tax for the 2014 fiscal year and Dougherty hopes to see even more businesses jump on board.
"In this case, the city is putting in the infrastructure which is what cities do and we are selling these lots at market value. So this is a good deal. We're getting back not only the cost of the construction by selling the lots but we'll also have the increased tax values because it's a TIF area, so we'll have that on top of that," he said.
Dougherty says Market value is $8 a square foot. Walgreens is paying $550,000 for the land and $154,000 for its share of the utilities and the street.
Walgreens will start construction either this fall or early next year during the spring and it's going to bring 40 new jobs to the area.