Hy-Vee’s drastic reduction in the operating hours of its downtown Des Moines store isn’t being well received by City Hall, which also is pushing back along with Des Moines police on the supermarket chain’s contention that the change is necessary in part to protect staff and customers amid rising theft and loitering at the store.
The city said Wednesday that Hy-Vee has 45 days to return its operating hours to 6 a.m. to 9 p.m., after which it and Knapp Properties, the developer of the 420 Court Ave. building that houses the store, could be in violation of a development agreement.
Hy-Vee spokesperson Tina Potthoff said Wednesday afternoon that meetings between Hy-Vee and the city are happening “now.”
“We have been talking to the city today about a resolution to best serve our customers in the downtown area,” she said. “We are making some adjustments that we hope to announce soon.”
City Council member Josh Mandelbaum, whose Ward 3 includes downtown, said the assertion that safety concerns played a part in the one-third cutback in hours, to 8 a.m. to 6 p.m., sounded to him like “a pretext.” He called the cutback “completely unreasonable” for a grocery serving a downtown with a growing population.
Without informing the city, Hy-Vee posted the new hours on the store’s website and in signs on its doors Monday. Potthoff confirmed the change to the Des Moines Register on Tuesday.
In addition to citing what she said were more than 200 calls to Des Moines police over the past six months about incidents at the store, she said in a statement that the morning and evening traffic at the store has declined as downtown office employees continue the work-from-home routine they adopted during the COVID-19 pandemic.
The 2015 development agreement for the store, under which the city awarded the site, then a parking lot, for a fraction of its assessed value, stipulated that, except on holidays, the market must be open from 6 a.m. to 11 p.m. seven days a week. The deal included 15 years of tax increment financing for the project.
When the store opened in 2017 its hours were 5 a.m. to 11 p.m. It later changed its opening time to 6 a.m., and city approved a 9 p.m. closing time.
Deputy City Manager Matt Anderson said in an emailed statement Wednesday that the city had “already reached out to Knapp Properties to initiate a conversation” about the new, unauthorized change in operating hours.
“Once the City is aware of potential development agreement issues, we make good faith efforts to work with the business before issuing an official written notice,” Anderson said, adding that Knapp has so far collected nearly $1.5 million from the tax increment financing, which still has nine years to run.
Chris Costa, President and CEO of Knapp, confirmed that the company is in talks with the city.
“I know it’s easy to look at it and say it’s completely out of compliance, but there are mechanisms to address situations like this,” Costa said. “There’s a timeline.”
Signs, partitions gone from store Wednesday
Costa declined to comment on whether Knapp was informed of Hy-Vee’s new hours before the change was made.
The signs announcing the new hours were gone from the store Wednesday, though the website continued to list them as 8 a.m. to 6 p.m.
Last week Hy-Vee confirmed plans to redesign parts of the store, with permanent partitions placed between some departments. However, temporary barriers erected between aisles in certain parts of the store were gone on Wednesday.
Mandelbaum, the City Council member, said the city needs to provide accountability and use its development agreement to the fullest extent.
“A full-service grocery store has been and continues to be important to the city to make sure we have the vibrancy downtown and the ability to support the residents who are living downtown,” he said. “That’s going to be our focus as we navigate this issue and as we go forward.”
It’s not the first time the city and Hy-Vee have been at odds. In 2021, Hy-Vee announced plans to revamp the store under its HealthMarket concept, spurring concerns that it would no longer stock basic grocery items, potentially putting it out of compliance with the development agreement. After offering reassurances, Hy-Vee put the plan on long-term hold.
Des Moines Police Department: More than 200 calls is accurate, but not all likely to have come from store
The Des Moines police spokesperson Sgt. Paul Parizek confirmed that the department had received about 200 calls over the last six months about incidents at the store’s address, but cautioned that “it is important to note that Hy-Vee may not be the caller on each of these.”
Parizek, in a statement, pointed out that apartments occupy the upper stories of the building, and also that “other businesses or people passing by could have all called in.”
He said about 40% of the calls involved reports of disputes, arguments, assaults and fights and about 20% were medical calls or requests for welfare checks. The balance were a reports about trespassing, theft, suspicious people, vandalism, vehicle accidents, “etc.”
More: Hy-Vee partnerships with Joe Fresh, DSW shoes end as departments removed from stores
He added, “I believe the Register reported on the significant drop in violent crime on Court Ave last year. DMPD has devoted a considerable amount of resources, and has worked closely with the businesses and residents of all of our downtown neighborhoods to prioritize safety for all who live, work, and visit the area.”
In his own statement, Mandelbaum, the City Council member, said he would “like to get more detail on the crime figures provided by the company and how Hy-Vee manages its security.”
“I am confident that that area is safe for customers and safe for residents after 6 p.m.,” he said. “We know that. We have tons of folks on Court Avenue all the time, year-round.”
“We’ve reduced calls on Court Avenue in the past year,” he added.
Downtown Chamber, neighborhood association push back on crime issue
Jimmy Olsen, director of the Downtown Chamber of Commerce, concurred with Mandelbaum, saying that he’s heard from businesses on Court Avenue that crime has only gone down — especially since the closure of several bars and a nightclub at Court Center, about a block east of Hy-Vee, that were the focus of many downtown complaints and police calls.
It’s more likely that Hy-Vee is feeling the effects of its own business choices, from opening in an entertainment district to not offering a full selection of groceries, Olsen said.
“With a lot of things that seem to happen in Des Moines, they don’t always think everything through,” he said. “Then they say ‘Shoot, was this a great idea?'”
Downtown Neighborhood Association President Brandon Brown said he wasn’t aware what measures Hy-Vee has taken other than staffing security guards. But if it was facing increased theft or loitering, he said, it could have raised the issue sooner.
When the alley between the Downtown Pantry and Surety Hotel became a cause for concern, the businesses there and the neighborhood association worked with the city to erect a gate, Brown said. Any “nefarious” activity was resolved.
“There are a lot of things I’ve seen happen downtown, but what I haven’t seen is somebody unilaterally cutting hours,” he said. “It seems like, if you want to be good neighbors, you work with the neighbors.”
Addison Lathers covers growth and development for the Des Moines metro. Reach her at 608-931-1761, [email protected] and on Twitter at @addisonlathers.
Philip Joens covers retail, real estate and RAGBRAI for the Des Moines Register. He can be reached at 515-284-8184, [email protected] or on Twitter @Philip_Joens.
Virginia Barreda is the Des Moines city government reporter for the Register. She can be reached at [email protected]. Follow her on Twitter at @vbarreda2.
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
