Kohl's Department Stores reached an agreement with the Village of Menomonee Falls, Wisconsin, in which the retailer will assume ownership of approximately 100 acres of vacant land in the Woodland Prime Office Park to construct a $250 million second corporate campus.
"Strengthening Kohl's headquarters is good news for Wisconsin," said Governor Scott Walker. "Not only is this a significant number of jobs, but it also signals that Wisconsin's economic climate is improving."
A Kohl's spokesman said the company will also acquire a small office building adjacent to the vacant land "to support the company's long-term business growth. Over the last decade, Kohl's has continued to experience growth in sales and net income, as well as add jobs both nationally and locally, including nearly 3,000 corporate positions in Menomonee Falls."
In exchange for the building and land, Menomonee Falls will assume ownership of Kohl's 530,000-square-foot former distribution center located on Woodale Drive in Menomonee Falls. The transaction is expected to close this fall.
According to the agreement, "for up to three years following the closing of the property exchange, Kohl's can elect to develop the vacant land as incremental office space. Following the development of a second campus, Kohl's plans to continue operating its current headquarters at Ridgewood Drive and credit service center located at Woodale Drive in Menomonee Falls."
"We have been proud to call Wisconsin home for the last 50 years and are pleased to be renewing our commitment to the state and to our communities, customers and associates by selecting this location in the place where it all started for us," said Kevin Mansell, Kohl's chairman, president and chief executive officer. "While it was always our preference to remain in Wisconsin, Kohl's took the needed time to study all of our options, including an assessment of developing a campus outside of the state of Wisconsin. Our goal has been to find the location that best positions us to remain an employer of choice, retain and attract the best talent and to satisfy our responsibilities to our shareholders and associates. The Woodland Prime site gives us the room we need to satisfy our business needs for decades to come. "
As an incentive, the Wisconsin Economic Development Corporation will create an Enterprise Zone to provide up to $62.5 million in state tax credits over 12 years. The actual amount of the tax credits will be completely dependent upon the number of newly created jobs and the amount of Kohl's capital expenditure. Its estimated the project could produce as many as 3,000 new jobs. In addition the Village of Menomonee Falls will provide up to $12 million in road improvements, payable over several years, from the incremental tax revenue to be generated by the Kohl's development.