Construction is under way on a new 20,000-square-foot retail building in the Hillcrest Shopping Center, Ninth and Iowa streets.

The approximately $1.5 million project will be at 925 Iowa, where Total Fitness Athletic Center was located before it was damaged by a March 2001 fire. The athletic center has relocated to South Iowa Street.

Don Theno, leasing agent for project developer Raney Properties L.P., said the building should be completed by May. He said the center could house up to four businesses.

“We don’t have any tenants signed yet, but we’re talking to some people who seem interested,” Theno said. “We’re really just looking for businesses that would be a nice extension of the current shopping center.”

The Hillcrest Shopping Center houses the Lawrence Community Mercantile, an appliance store, bowling alley and about 25 other small retail, restaurant and bar businesses.

Theno said a major retailer like a hardware store or a business that caters to other home-improvement needs would be a good addition to the center.

Bud Stallworth, general manager for Raney Properties L.P., and Don Theno, of Theno Real Estate and the leasing agent for Raney Properties, stand near the construction of a 20,000-square-foot retail building. The building at 925 Iowa is expected to be complete by May.

“Home-improvement type of businesses seem to be something this area of town could maybe use more of,” Theno said.

The project marks the first renovations at the site since the fire. The site also was the home for Hillcrest Theaters for about 25 years until 1998.

Theno said the property’s owners had been working on plans to rebuild since the fire. Plans were delayed by engineering reports used to make sure the foundation was still sound. City officials approved building on the foundation.

Bud Stallworth, general manager for Raney Properties, said that by using the current foundation, it should be able to pass along the savings to tenants, which should help during a tight economy.

“It just made a lot of sense to us,” Stallworth said. “We already owned the ground, and that’s a big part of the expense in this town. It should allow us to be very competitive in attracting tenants.”