The Irving, TX-based retailer plans to close a large distribution center in Kentucky and some other smaller centers around the country and consolidate its operations at a site in Northern Builder's new 206-acre Cherry Hill Business Park along I-80 near U.S. 30. The company needs the facility to keep pace with rapid expansion of new stores, with plans to open 55 more this year.

Michaels has been actively seeking a site for the distribution facility since November, when it hired Colliers Bennett and Kahnwieler to advise it on the search.

It has been negotiating with Northern Builders to develop the facility in its Cherry Hill Business Park. Once completed, the business park will include 1,200-acres extending south to Laraway Road and west to Cherry Hill Road. Michaels would join two separate buildings that broke ground in October including Titan Steel's 115,000-sf building to be finished by April 2003 and an 185,000-sf spec building.