Construction of second Huntley Jewel store set to begin this fall

Construction of a new Jewel-Osco store on the north side of Huntley is expected to begin this fall.

The store, planned for the northeast corner of Route 47 and Reed Road, is set to open in 2020, according to the village website.

Village officials granted Jewel Food Stores until Dec. 31, 2020, to finish the project, which is expected to create roughly 160 jobs.

Construction originally was expected to begin last fall and to be completed by Dec. 31.

Jewel is spending about $11.5 million to build the 63,538-square-foot store on 8 acres in the southern portion of the roughly 17-acre property next to Reed Road. It will include a drive-through Osco pharmacy, a cafe, outdoor seating and seasonal sales areas.

The grocer owns the formerly bank-owned property, which will be split into two lots. A developer plans to build a gas station on a roughly 3-acre outlot, according to village documents.

Jewel would become the anchor tenant of the shopping area, which includes a Walgreens to the west and a multi-tenant center to the north housing a Dunkin' Donuts.

Last year, village officials granted a 50% sales tax rebate to Jewel as part of a business development agreement. The sales tax revenue-sharing agreement is for up to 10 years or a total of $1.75 million. The village would grant Jewel an additional $250,000 incentive if a gas station is built there no later than 12 months after the new grocery store opens.

In its first year, the new store is expected to generate about $286,000 in revenue from the village's 1% sales tax, to be split between the village and the developer. By year six, estimated sales tax revenue would be roughly $340,000 - the village's take would be about $169,000.

Jewel also spent about $1 million to renovate an existing Jewel-Osco store at 13200 Village Green Drive, originally built in 2002. The newly remodeled store off Route 47 and Oak Creek Parkway recently held a grand reopening. It now offers a salad, soup and wing bar and a new sushi station with freshly made rolls.