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CHICAGO-Having landed what it considers a prime location despite the failure of two other big-box retailers, Target Corp. also will get $4.6 million in tax increment financing to build a 160,000-sf, $42-million store at 2036-2136 W. Peterson Ave. Along with another store being built in the McKinley Park neighborhood, Target's store in the West Ridge community will be the Minneapolis-based retailers first two outlets in the US meeting LEED-certified environmental standards.
In addition to 130 trees planted on the 6.5-acre site between Damen Avenue and Rosehill Cemetery, the Target store will have a "green roof" over more than 50% of the building's cover. The store's design is unique in the retailer's portfolio, not only because it fits between two of the chain's three prototypes—a 138,000-sf model and a 175,000-sf "Superstore" concept. It will be built above a parking area, with 503 spaces, to maximize use of the land.
"This is a great opportunity for us. This is location, location, location—a great location to open a Target store," says senior development manager Forrest Russell, whose company acquired the property last year for $10.5 million.
The company also has received a zoning change from the city council, and got a favorable recommendation Tuesday from the community development commission on the tax increment financing. Russell says Target Corp. hopes to begin construction next month, with a store opening expected in October 2006. The project includes razing an existing big-box, formerly occupied by Venture and Kmart stores but vacant since 2002.
Russell claims the West Ridge store may capture $6.75 million in annual sales from a competing Target outlet in the neighboring suburb of Evanston. However, he dispels the notion Target will further erode its market by opening stores in the Wilson Yards mixed-use project in Uptown as well. The new store there and the Evanston Target are within 1.5 miles of the West Ridge site.
"They'll be servicing different areas," Russell says. "We have stores in some parts of the country a mile apart. We see this as two different markets."
The West Ridge area has more than 1,000 small businesses, but lacks big-box retail outlets. As a result, Target customers travel to Evanston, costing the city sales tax revenue.
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