Iowa Town Reaps Benefits by Investing in Local Problem

The town of Correctionville decided to right one major wrong in their com¬munity: the lack of a grocery store. Tim Gallagher of the Sioux City Journal reports the town has been without a grocery store since a fire destroyed the only one over three years ago.
A new community-supported, 6,000 square foot grocery store called The Mercantile opened on January 30. The store is the result of a business plan from members of the Correctionville Economic Development Corporation. Gallagher explained, “The idea involved soliciting donations and grants before building a store. The organization would then find a manager who would own the goods on the shelves and run the operation.”

Such a business venture could take $500,000 to get off the ground, according to one community member. Correctionville is a town with 824 resi¬dents, so the risk would be large. With a 10-year lease, the manager of The Mercantile will pay the economic development group back. At the end of the lease the McCreas will own the operation.