MOUNT MORRIS – Sullivan's Foods plans to start construction in May on a new building at its site along 101 state Route 64.

Owner Scott Sullivan told village board members Tuesday that the $3 million project, which will take the store from 14,000 to 23,000 square feet, should be finished by Thanksgiving.

"Mount Morris deserves a first-class operation," Sullivan said. "We are going from the 1940s to a state-of-the-art store."

In January 2014, Sullivan asked the board for tax increment financing district funds to finance infrastructure improvements for the area.

Last May, the board approved several financial incentives, including a 15-block TIF district that includes the grocery; payment to Sullivan's of $600,000 ($50,000 a year for each of the next 12 years); a real estate tax abatement of $140,000; and sales tax rebates for 12 years, estimated at $118,170.

Three houses on properties adjacent to the current store were bought and demolished last summer, and Sullivan worked with Al Millhouse, owner of the neighboring car wash, to increase a detention pond for water runoff that will be on both sites.

A floor plan was presented Tuesday that includes an improved deli and seating area.

The new building will go up in sections so that the store – the only grocery in this village of 3,000 – can remain open for business throughout construction.

There will be a partial shutdown of the deli and food prep area for 30 days. During the deli closure, "We will get a portable smoker so customers can get fresh smoked chicken instead of fried chicken," Sullivan said.

Sullivan's is a regional grocery store chain with stores in a dozen Illinois towns, including Morrison, Savanna, Princeton, Freeport, and Rochelle.