(Radio Iowa) – The State Auditor’s Office is recommending that the City of Waterloo update its conflict of interest policy after a city employee was part owner of a grocery store that got about two million dollars in grants and tax incentives from the city. All-In Grocers was the first grocery store in downtown Waterloo in 50 years when it opened, but it closed last fall after about a year of operation. A developer started the project in 2017 and the human resources director for the City of Waterloo became a partner in the project in 2020, but did not disclose that in their employment record.

The State Auditor’s Office report indicates the H-R director did not have what it called voting capabilities on the grocery store project and no internal rules violations were cited. However, the report recommends the City of Waterloo start requiring yearly updates of conflict-of-interest forms and city officials are promising to adopt that policy.

A group of Waterloo citizens and the accounting firm that audits the city’s spending asked the State Auditor’s Office to conduct the review. In February, a Waterloo native who’s a recently retired businessman, said he had made an offer to buy the store and reopen it.