Report: Kohl's and Village Modify Plans to Keep Headquarters in Falls
The most recent proposal would include $41 million in public financing.
There’s been a lot of speculation whether Kohl’s would keep its headquarters here in Menomonee Falls, but a revised plan has created some optimism that they will stay right here in the village.
According to Tom Daykin of JSOnline, the village and Kohl’s are negotiating a new proposal that would include about $41 million in public spending to keep the headquarters in the village.
The proposal would place the company’s primary building on 45 acres of village-owned land in the northwestern corner of the Woodland Prime office park between Good Hope Road and Appleton Avenue, Village Manager Mark Fitzgerald said in the report.
The village would create a new taxing district and spend about $23 million to install new roads, water mains, a bridge and other improvements. An additional $18 million would purchase land and provide grants and incentives.
Daykin reports that the $41 million would be paid back over the span of 18 years, and the money would be raised through property taxes on the building.
The plan also includes a less costly $28 million proposal that doesn’t involved Kohl’s locating in Woodland Prime.
According to the report, the plan could go in a number of directions over the next several months as it makes its way through the approval process. Any financing for the Kohl’s project will need to make its way through the Plan Commission and Village Board for approvals.
On Aug. 2, the taxing district that would include the new headquarters will go before the Plan Commission for a public hearing.
Nate
4:56 pm on Tuesday, July 26, 2011
Kohls has the village by the short ones I'd say, but that's what it takes to come/stay here. Call the Pope and ask if this qualifies for a miracle.
Craig
4:58 pm on Tuesday, July 26, 2011
Kohl's existing corporate offices are located in a TIF...as that TIF becomes part of the tax base in Menomonee Falls they now decide to move...
Now they want a new TIF? How does this switch do any good to the Village and our schools?
Once again it will be 20 or 30 years before there is any benefit to the taxpayer, so unless Kohl's signs a long term agreement to stay, I think we should let them go.
The prosser-cuter
8:44 pm on Tuesday, July 26, 2011
@Craig. From what I have heard, Kohls will continue to occupy their current headquarters in addition to the new space. Even if they didn't, your argument doesn't hold water because TIF's are paid back by property tax on the building. No matter who occupies the building the Village would get their money. I'm very happy the Falls is doing TIF's for both Kohls and Wacker. Anyone think these businesses would be growing and adding employees under Doyle?
The prosser-cuter
8:46 pm on Tuesday, July 26, 2011
@Craig - another point you may have missed, is that the current Kohls building is not in the Menomonee Falls School District. It is in the Sussex Hamilton District (even though it is located in MF) The new building if built at Woodland Prime would benefit the MF School District.
Craig
9:18 pm on Tuesday, July 26, 2011
Prosser-cuter: I had heard they were going to relocate all office space to the new location- leaving the Silver Spring area vacant. Finding a new company to occupy that space and pay the taxes could be a challenge.
I stand corrected- The Silver Spring corporate park IS in the Hamilton District....my bad; though I did not state an opinion about which school district it was located in.
The main point to be made here is the new Woodland Prime location will not benefit either School District or the Taxpayer until the TIF is paid off by the tax revenue- this can take 20 or 30 years. The existing Kohls Corporate was also a TIF, but I am not certain if that TIF has been paid for yet. Perhaps not a dime has gone into the Village general fund yet.
The prosser-cuter
11:23 pm on Tuesday, July 26, 2011
I heard they need the exisitng space as well as new space. I know several people who work at Kohls Corporate. Even if that building would become vacant, I don't think it would take very long to fill it up. Very prime office space in a good location. Most likely not one company, but several businesses occupying space. Kohls moving would be devestating to both Menomonee Falls and Sussex. There would be a crap load of houses on the market.
Craig
9:21 am on Wednesday, July 27, 2011
True- there already is far too many houses for sale in the Falls. Some people I know would commute if Kohls moves. But the real issue is if they take advantage of another TIF- how long will it take to reap the benefit?
The prosser-cuter
1:41 pm on Wednesday, July 27, 2011
Don't know what the payback period is on the TIF, they are usually about 15-20 years I think. I think the community as a whole reaps the benefit of the TIF's relatively quickly. Not the property tax money that isn't coming in from the project, but the economic trickle down. More people working, more people buying houses, more people eating in the restaurants, etc.
Craig
7:31 pm on Wednesday, July 27, 2011
I agree with the trickle down.
I just question the TIF #1 change to TIF #2 deal. I want to see Kohls stay, as long as it doesn't affect the tax base negatively- which it could if Kohls gets a new TIF and leaves in 10 years, or if the old building sits vacant.