The city of Austin is hoping to get some of its money back on the upcoming Oak Park Mall demolition through a special tax district on the property.

The city and Austin Port Authority will hold a public hearing to create a financial tax district on the site on Nov. 12. The port authority approved the hearing during its regular meeting Wednesday.

Finance Director Tom Dankert said the tax district would help the city recuperate funds by capturing a larger percentage than normal of the increased property taxes that would come from the project to demolish Oak Park Mall and put in a new 60,000 to 90,000-square-foot Hy-Vee grocery store. Though the city, county and school district share portions of a business’ annual property taxes, a special tax district would increase the city’s share on the property, which would likely increase in value once the project is finished.

The city of Austin is contributing $750,000 toward an estimated $3,075,000 demolition project at the mall. That money is coming from the city’s general fund and building fund and won’t result in increased taxes in 2014, according to city officials.

The port authority will give $500,000, Hy-Vee will contribute $1 million, another $500,000 will come from state grant opportunities, and another $325,000 will be raised through local grants.

The move will affect several other tenants at the mall. Younkers, Anytime Fitness, the Cinemagic 7 movie theater and the Wells Fargo ATM leases will be honored as part of the deal, but all other tenant leases will be terminated, according to city officials.

Most mall tenants have a month-to-month lease, but one tenant is set to stay at the mall through January 2015.

The city will likely have five to six open spots for businesses who wish to stay on mall property.