Fred Meyer is asking the city of Coos Bay to subsidize construction of a new store at its current location on South First Street. If the city says no, the department store chain may decide to build at a different site.

Fred Meyer officials are seeking up to $2 million in urban renewal funds, said Melinda Merrill, a spokeswoman for Fred Meyer Stores. The company wants to improve the appearance of its storefront and would add about 20 union jobs following construction. The new facility would be about 15,000 square feet larger than the existing one, Merrill said, providing shoppers more selection in almost every department. She noted these objectives are all in keeping with the urban renewal district’s goals.

Mayor Jeff McKeown said it would be nice to see such improvements, though he isn’t sure the city is in a position to provide $2 million to one business.

The city asked Fred Meyer to come back with an appraisal of the new building’s property tax output.

City Manager Chuck Freeman, who has spoken with Fred Meyer officials off and on for months, said the appraisal would let the city determine how much more tax revenue the new building might generate for the urban renewal district.

The existing building, which is within the downtown urban renewal district, has sat at the south entrance to Coos Bay since 1971. The store employs 145 people, Merrill said.

She said Fred Meyer hopes to make a decision about where to build a new facility by the end of the year. The company is focusing on the First Street site, though not exclusively.

“We love being in Coos Bay,” she said. “It’s just, the project’s got to pencil. That’s why we are looking at all our options.”

Fred Meyer has not signed any contracts, Merrill said, though it is considering off-site locations.

She said Fred Meyer usually spends about $30 million when building a new store, though the site location can make it more or less expensive.

“It’s a very rough figure,” she said.

Any funding provided by the urban renewal district would be used for the public benefit, she said, such as infrastructure or road improvements.

Merrill said the company is preparing its appraisal, though she is unsure when it might be ready.

“It’s hard to appraise something that doesn’t exist,” she said.

Fred Meyer is owned by Kroger, which has its headquarters in Cincinnati, Ohio.

(Staff Writer Alexander Rich covers Coos Bay issues for The World. He can be reached by calling 269-1222, ext. 234; or by e-mailing to arich@theworldlink.com.)