G&W Foods remains committed to building a new store in Iola, but higher than expected construction costs have stalled the start of the construction phase.
Chris O’Hara, G&W’s chief operating officer, told the Register this morning the company is looking to find ways to close a $500,000 gap above what they were expecting to spend to build the store at the old Allen County Hospital site in downtown Iola.
“When we got the bids, there was a significant gap” in what the company had budgeted for the building’s construction, O’Hara said.
O’Hara noted the Iola store is the first “ground-up” facility G&W has planned in more than 20 years.
The general practice has been for G&W to fill empty buildings, O’Hara explained, which is how most of the Missouri-based chain has opened 25 such locations throughout Kansas and Missouri.
The plan is to build a facility with a “neighborhood store” design with front and side exteriors of brick, stone or other similar architectural material, and not a metal shell building commonly associated with “box stores.”
But with the budget gap, company officials have been meeting with a series of subcontractors, architects and others to look at ways to cut expenses.
O’Hara noted the positive feedback the company received from local residents. He, too, is excited about opening a store in Iola. “But we need to figure out how we can close this gap and get going.”
O’Hara noted G&W already has the store’s managerial staff hired. Those employees have been training the past several months at other G&W locations.
To date, O’Hara estimates G&W has invested about $100,000 to prep for the Iola store between land acquisition, architectural designs and hiring employees.
Price tag stalls G&W store construction
