While Kmart isn't commenting on the record, all indications are that it is looking for a new site for its main office. Paul Krepps, a spokesman for the Michigan Economic Development Corp., and others say the discount retailer is interested in moving elsewhere in the same city, another city in Michigan or another state.

"It's clear to everybody that the facility...is not going to be their long-term facility," says Doug Smith, director of real estate and development for thecity of Troy. An incentive package to keep Kmart in Michigan wouldnot be unlikely, says Krepps, who adds "there is not a specific package on the table."

Kmart has been rumored to be looking at locations in or near Grand Rapids and Atlanta. Gov. Jennifer Granholm's spokeswoman Liz Boyd says the governor met with chief executive officer Julian Day two weeks ago and is working aggressively to make sure Kmart stays in the state.