Albertson's Inc. plans to close its Bountiful food store and replace it with a new one two blocks away.

Michael Reuling, executive vice president of store development with the Boise-based company, confirmed Thursday that a 40,500-square-foot Albertson's food store will be built at a new development at Second West and Fifth South. Construction is expected to begin this fall, and the store is scheduled to open in May or June of 1990.Reuling said that a better location and space for more parking were the primary reasons the company decided to build a new store. The food store, a strip mall and two other commercial buildings are planned for the 6.5 acre site, formerly owned by the Palmer family. The site is next to the Bountiful Fred Meyer store.

"We have always wanted to be on this corner. We had tried to acquire the property in the past, but we were unable to assemble it and put the package together. Because we couldn't get it, we took the second-best choice," Reuling said. "It wasn't a question of the store being outdated."

The store will be similar in size and have all of the same departments as the present operation, Reuling said.

"It will probably have a different outside design, but will have all of the same basic departments," he said. "The Bountiful store has been good for us, but we have not had adequate parking for the business that we do."

When the new store opens, the present Albertson's building, which the company owns, will be leased to another tenant. Company officials have already been talking to a number of potential lessees. There is not expected to be any problem leasing the space because of its prime location, Reuling said.

Cantlon Properties, the Boise-based developer of the project, said that the deal with Albertson's was completed on March 31. The company is still continuing to get tenants to occupy the 1,200 feet of retail space that will be attached to the food store, Maurice Gregory, Cantlon spokesman, said.

Other tenants will be housed in 7,000- and 5,000-square-foot buildings.

Gregory said his firm has recently gone to bid for the design of the store and no formal groundbreaking has been scheduled, other than to say it will occur sometime this fall.

There is still also concern about the fate of the Palmer home, which is listed on the National Historic Register and situated on the corner of the property.

Roger Cantlon, an executive with Cantlon Properties, said recently that no firm decision had been been made about the home. He said that his company was willing to talk to the city's Historic Preservation Commission about renovating the home rather than tearing it down.