Village leaders officially took the next in its multimillion-dollar, multi-land transaction deal with Kohl’s Corp. that will ensure the company remains headquartered in Menomonee Falls for the foreseeable future.
The Village Board on Friday closed on its land deals with Kohl’s, which is another step toward bringing the project to fruition. The agreement involved the village, Kohl's, and developer Doug Weas. Weas owned an office building in the Woodland Prime office park that the village purchased and immediately turned over to Kohl's for its headquarters plan.
Kohl’s announced in July that it would stay in the village and build a 900,000-square-foot, multi-building expansion to its corporate offices in Woodland Prime. The $90 million expansion project is expected to add some 3,000 additional jobs over the next decade.
In September, Village Manager Mark Fitzgerald was given the green light to issue a $10,000,050 promissory in advance of the series of property exchanges with Kohl’s. The promissory note and property transaction was part of the development agreement inked by the Village Board. It’s part of the overall financing for the taxing district that Kohl’s will build in.
The $10 million note will be utilized in the following:
- $6.9 million will be used to purchase an existing 54,000-square-foot office building adjacent to the future Kohl’s building in Woodland Prime. Falls will turn ownership of that building over to Kohl’s and it will become a part of its corporate campus
- $2 million covers a grant incentive to Kohl’s
- $650,000 will be used to cover capitalized interest
- $500,000 will cover a relocation costs to an affiliate company owned by Weas to replace the building the village is purchasing.
In exchange for the 54,000-square-foot office building off in TID #10, the village will take ownership of the Kohl’s distribution center. Kohl’s will lease the building from the village for free, but will pay taxes and utilities until the company relocates to its new building. The distribution center will house the village’s Public Works Department in the future.