New business may beat out Bomgaars

The old Kmart building across from Oak Park Mall will soon be home to a new retailer, but Bomgaars may not be it.

A different retail company with products in the same vein as the home improvement store Bomgaars is finalizing negotiations to acquire the building, according to Craig Hoium, the city’s community development director. The other company’s identity has not yet been released.

The retailer would purchase the building along with the remainder of the lease from Kmart/Sears Holding Co, which lasts through November 2016.

If the new retailer and the building’s owner close on the deal, the retailer could be open for business by Thanksgiving, Hoium said.

The retailer would not request a subsidy from the city, he added.

In contrast, Bomgaars, has asked for a $150,000 loan from the Port Authority’s general fund. That loan would be considered for full or partial loan forgiveness if the company met certain requirements of creating and keeping jobs in Austin. The Port Authority approved a letter of intent from Bomgaars at a regularly scheduled meeting in July.