Boone-based grocer Fareway is planning to begin construction on a $22 million cooler facility to accommodate company growth.

The 267,000 square foot building will house refrigerated foods and help ease the burden on the now full Fareway warehouse. The facility will be constructed at Fareway headquarters in Boone.

Fareway will break ground next week and hopes to have the facility completed by next spring, said Fred Greiner, executive vice president of Fareway.

The planned expansion is planned to create approximately 17 new jobs in Boone and the surrounding areas.

The cooler facility will be technologically advanced, with much of the building automated.

“The new facility will allow for more efficient distribution than the current warehouse and meet the needs of foreseen continued growth,” he said.

The increased space at the new facility may lead to additional products and choices at Fareway.

“From a logistical standpoint, it will aid not only the retail food stores but also the customer, due to a decrease of cost and an increase of service and product selection,” said Andy Kohler, a product vendor for Fareway.

Greiner said Fareway decided Boone was the most economically feasible place for the facility.

Fareway headquarters has been a staple in Boone since 1938 when former Safeway workers Paul Beckwith and Fred Vitt first opened their doors. There are 84 Fareway stores in Iowa. More than 6,500 people are employed by Fareway.

Fareway headquarters employs approximately 400 people and is the second-largest employer in Boone, next to the railroad, said Robert Fisher, executive director for Boone’s Future, an economic development corporation.

“The impact of Fareway on Boone is huge.”

“Fareway’s decision to expand in Boone was a great vote of confidence,” he said.