"We have a scoring system used to analyze sites, and the Park 88 site was the first 100 score we have ever seen," says Target senior vice president of distribution services Mitchell L. Stover. A key factor was more than $10-million financial incentives provided by state and local governments, he suggests.
Target struck deals with eight taxing bodies to abate or rebate property taxes totaling approximately $3.8 million over the next two to 10 years, says DeKalb County Economic Development Corp. executive director Roger G. Hopkins. Meanwhile, the City of DeKalb, home to Northern Illinois University, will make nearly $1.8 million in infrastructure improvements, with the state granting another $1.9 million for streets and sewers. The developers also are kicking in another $2.7 million for infrastructure improvements.
The payoff includes a $21-million payroll for a 500-member workforce, according to city officials. That is expected to generate $33 million a year in spending for the area, they say.
"This project provides the necessary balance to our residential growth," says Mayor Greg Sparrow. "The increased wages from Target's employment will spur retail development and increase sales tax revenues."
The distribution center will be Target's 23rd distribution center, but the first in Illinois, where it is adding 11 stores to its chain. The 71 stores in the state is the fifth-highest total.
Cushman & Wakefield of Illinois senior director Michael C. Fonda, SIOR, and associate Hugh Williams represented the Park 88 development team along with local broker Steve Milner, SIOR, CCIM, president of Milner & Associates. Target relied on Chicago-based Versus Partners, LLC during the site selection process, and Walsh Construction has been hired as general contractor for the distribution center.
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