EAST CHICAGO | Strack & Van Til wants to invest $4.5 million in developing a new supermarket downtown.

The company unveiled plans this week to convert the current Riley Plaza Sterk's Super Foods in the 4700 block of Indianapolis Boulevard into a 44,000-square-foot Strack & Van Til store.

"It's an area in need of redevelopment," said Brian Bosma, special counsel to the city for the project. "We want to gut the entire building and start over."

The new supermarket would combine the Sterk's space with the adjacent former Walgreens pharmacy, said Bosma, Indiana House of Representatives Republican leader and partner with the Indianapolis law firm Kroger, Gardis and Regas.

Because the property is in an official urban renewal area, Strack is also seeking $1.7 million in tax increment financing from the city's Economic Development Commission for the project, Bosma said.

The East Chicago Redevelopment Commission amended the old urban renewal plan to accommodate tax increment financing for the project, and the city's Plan Commission approved the development plan in special meetings held on Monday.

The City Council must also approve the commissions' rulings before the project can go forward, and the plan is on the agenda for the council's Dec. 10 meeting.

There is some urgency in getting the proposal adopted before the end of the year, Bosma said, "because property taxes may be revised next year, and there are no guarantees how (tax increment financing) will be handled next year."

A special meeting of the council could be convened on Dec. 17, Bosma said, for final adoption of the financing plan.

"Strack & Van Til is very excited about coming to the city of East Chicago," said Strack President David Wilkinson. "Our goal is to hire as many East Chicago residents as possible."

Construction is scheduled to begin in February, Bosma said, and completed by August, with the store closed down for the six-month renovation period.

Both Sterk's and Strack & Van Til are owned by Chicago-based Central Grocers Cooperative.