Plans to redevelop the old Kmart site in Joliet for a supermarket and more are drawing interest.

The $3.5-million incentive package for Tony’s Fresh Market was approved by the Joliet City Council on Dec. 15.

Joliet Economic Development Director Derek Conley said Monday that he has begun to hear from businesses interested in joining Tony’s at the location, which is at the corner of one of the busiest intersections in the city.

“There have been some people who have reached out to me about possibly being co-tenants with them,” Conley said.

He’s been passing on the names to Tony’s, the regional supermarket chain that also is the developer of the site at Jefferson Street and Larkin Avenue.

The city approved the incentive package, which rebates half the sales tax revenue generated off the site up to $3.5 million, hoping to attract Tony’s and other businesses to the 9.5-acre site.

“Grocery store anchors are very good,” Conley said. “They attract a lot of people, and other stores like to be close to grocery stores.”

Tony’s is taking about 70,000 square feet of the nearly 100,000-square-foot Kmart building, which has been empty since the store closed in 2016. That leaves roughly 30,000 square feet to be used in the Kmart building, and Tony’s has more plans for the site.

The Kmart store was built in the 1960s with a huge parking lot that allows for more development.

Tony’s plans include an out lot being developed along Jefferson Street along with retail space along Larkin Avenue.

The 50% sales tax rebate provided by the city applies to any business that opens on the site, creating an incentive for Tony’s to bring in other retailers or restaurants.

Joliet expects to see $350,000 in annual sales tax revenue from Tony’s before the rebate, meaning the city will still get $175,000 a year while the incentive is in place. The incentive has a maximum life of 20 years but would end once the rebate reaches $3.5 million.

The redevelopment of the old Kmart store also is expected to increase annual property taxes at the site from $65,000 now to $170,000. Joliet’s share of property taxes would go from $8,400 yearly now to $22,000. The remaining money would be distributed to other taxing bodies.