Developer cancels plans for Bloomington Hy-Vee

The developer planning to build a new-format Hy-Vee store in Bloomington’s Southtown shopping center has canceled the project.

Driving the news: Minneapolis-based Kraus-Anderson recently emailed city planners saying he had to pull the project.

• The company did not provide a reason. But in a November email to the city, KA said rising construction costs were impacting lease negotiations.

Details: KA reportedly demolished the Herberger’s and Southtown Lanes spaces to make way for a large grocery store that implemented the company’s new smart technology.

What awaits us: Kraus-Anderson executive Matt Alexander told the city that his company, which owns the mall, still wants to complete a project.

• “All is not lost,” he wrote. “The site design efforts with the staff will not be wasted as several users have shown interest in the site over the past few months through the publicity that HyVee has brought.”

To note : Hy-Vee declined to comment.