Thrive Allen County announced in May that G&W Foods, Inc., a Willow Springs, Missouri-based supermarket chain, had submitted a letter of intent to build a new store as part of a new mixed-use development in the heart of Iola. The 15,000 square foot store will be constructed at 101 South First Street on the site once occupied by the former Allen County Hospital. As of early November 2015 demolition of the former hospital is more than 60% complete, with the entire site expected to be fully cleared by Christmas.

The residential portion of the project is moving ahead as well. Allen County Commissioners unanimously agreed on November 3 to grant a 24-month option to Iola Industries to purchase a portion of the hospital grounds surrounding the site of the eventual G & W Foods. The price for the property is $20,000. Iola Industries intends to use the land for the construction of market-rate apartments and duplexes.

Construction of both the new supermarket and Phase I (20 units) of apartments is expected to begin in Spring 2016. The first phase of apartment construction will likely result in 20 two-bedroom units with prime access to the new grocery store. Additional apartments and a series of duplexes are expected to follow. Thrive Executive Director David Toland noted that “this $7 million project is not only the largest redevelopment to occur in Allen County in decades, but it’s also one of the most creative economic development projects happening in any small town in the state.”

“G&W agreed that the site will be aesthetically pleasing” when the new construction is complete, County Commissioner Tom Williams said. “It’s going to be great for the city of Iola and Allen County as a whole.”