A development agreement with Kwik Trip/ Kwik Star moved forward, with the City of Mount Vernon committing infrastructure for the extension of Rachel Street S.E. to the west of Highway 1.

That infrastructure would include extending water, storm and sanitary sewer and the traffic light for the crossing of Hwy. 1 for the development.

Kwik Trip/Kwik Star will be constructing a 9,200 square foot gas and convenience store at a location along the new Rachel Street. A site plan is still being developed for the location, and will be reviewed and approved by the planning and zoning commission before it comes in front of Mount Vernon City Council.

The city will utilize Tax Increment Financing (TIF) for this project in the urban renewal area of the community.

In the development agreement, Kwik Trip/Kwik Star has said they expect to hire at least 20 full time equivalent employees at the location.

The minimum cost for all improvements to the site is expected to be $2.6 million.

“Kwik Star was the catalyst to extend development of Rachel Street,” said city administrator Chris Nosbisch. “We would have had to extend this infrastructure to the west of Rachel Street if anyone wanted to develop in that area.”

Nosbisch said the value that the new business entity will bring for taxes will offset the costs for bonding for infrastructure improvements for the city.

Council member Stephanie West said she was appreciative of the commitment of hiring 20 employees locally, especially since Kwik Trip/Kwik Star has been named a top workplace in the state of Iowa.

Casey Bondurant of Kwik Star/Kwik Trip thanked Nosbisch and assistant city administrator Lori Boren for their work on this development agreement and with the site plan still to come.

“We’re looking forward to getting these last approvals and this project moving forward,” Bondurant said.

Kwik Trip/Kwik Star has 890 stores in six states and continues to grow, and Bondurant said is one of the companies that gives the profit they make back to their employees.