Construction won’t take place until 2022, but Kwik Trip says a second gas station in St. Peter is written with a permanent marker on its project schedule.
The convenience store and gas station company has taken over the property that formerly housed the Anytime Fitness building (the business has since moved to a kitty corner lot) at 100 Dodd Ave. between Hwy. 169 and Old Minnesota Avenue. Kwik Trip already demolished the building formerly on the lot, and the next step is preparing the land for construction.
Kwik Trip Real Estate Development Manager Dean George told the St. Peter Herald that construction is slotted in for summer 2022.
“We’re still hoping to be under construction next year,” he said. “Everything has been great. The city has been very pleasant to work with.”
George confirmed that it would be a 10,000-square-foot convenience store to go with the gas station and car wash. There would also be a separate canopy for diesel, which the Kwik Trip on the south side of St. Peter does not offer. There will not be in-store amenities, like showers, for truckers, though, and overnight parking will not be allowed.
“I don’t think there is even room for that,” George said.
From the city of St. Peter’s perspective, a gas station is an acceptable use of the land on the northern side, off the highway. Community Development Director Russ Wille noted “It will certainly have a tax impact” and said “It makes sense for a station there.”
Wille said there are still final approvals needed for the project, but the city has been walking the company through the process, “so I don’t anticipate final approval will be difficult at all.” Kwik Trip will also need to get approval from the Minnesota Department of Transportation, which will review access from both Hwy. 169 and Hwy. 22 (Dodd Avenue).
In addition to Kwik Trip’s development, McDonald’s is rebuilding and Hy-Vee may add a gas station, all on that northern stretch of town. With this increase in development concentrated in one area, city staff see an opportunity.
“It may be of advantage for the city to establish a new redevelopment tax increment district in that area to capture some of those new tax dollars for public works uses,” Wille told the St. Peter City Council at a work session Dec. 7.
Essentially, if the city establishes a new redevelopment tax increment district in the area, it would be able to benefit from any development within the district, taking the increased tax dollars and using them for public works projects in the district.
For instance, say, hypothetically, that one property in the redevelopment district is paying $50,000 in real estate taxes right now, but then makes an improvement and starts paying $70,000. The original $50,000 would still be split between the county, school district and city. But since the city established the redevelopment district, the additional $20,000 in taxes after the improvement could be taken by the city to be used for street projects, sewer, water, etc. in that district.
As its Dec. 7 meeting, the City Council seemed to be in favor of the move, feeling there was little to lose. The main drawback of establishing the district would be taking away those tax dollars from the county or school district, but the redevelopment district would not be permanent (can go up to 25 years), and Wille said Nicollet County and St. Peter Public Schools have typically been supportive of the city’s “judicious use of tax increment dollars.”