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Whole Foods to open grocery store in Woodbury

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The organic food store chain Whole Foods is coming to Woodbury. The grocery store will be part of a new development called City Place, which is being built at the intersection of Radio Drive and Interstate 94 in the east metro suburb, according to the St. Paul Pioneer Press.

The Austin, Texas-based grocer has signed a lease for a 45,000-square-foot store at City Place, a 700,000-square-foot development which will also include office space, retail shopping, restaurants and a hotel, according to the developer Elion Partners.

The Woodbury store will be Whole Foods' seventh Minnesota location. The others are in Minneapolis – which has two – St. Paul, Maple Grove, Minnetonka and Edina.

It's also another entrant into the grocery wars in the east metro suburbs. Woodbury already has eight grocery stores, according to the Minneapolis-St. Paul Business Journal, and a new Jerry's Food's is being planned.

In addition, the Iowa-based grocery chain Hy-Vee is making plans to build a new store in nearby Oakdale, and is also eyeing a vacant Rainbow Foods store in Cottage Grove, just south of Woodbury.

The City Place site is the former home of State Farm Insurance, which vacated the 400,000-square-foot building in 2006. The project includes renovating that space as well as constructing new buildings to house the other proposed tenants.

Elion and Kraus-Anderson paid $10.8 million for the property, and the project gained final approval from the Woodbury City Council in August, according to the Business Journal.

Construction of City Place begins in October. The Whole Foods store will be complete in 2017, along with the rest of the development, according to the Business Journal.

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