DANVILLE — Aldermen on the city's public works committee Tuesday night recommended a $300,000 redevelopment agreement for the planned T.J. Maxx store and also recommended annexing 12 acres for the Meijer retail project.
Both issues will go to the full city council for final approval next week. Both proposals were approved 4-0 with three aldermen on the public works committee absent Tuesday night: Bill Black, Rickey Williams Jr. and Rick Strebing.
The redevelopment agreement is with the Milwaukee-based Continental development firm that already has an agreement with Kohl's and is now close to an agreement with T.J. Maxx officials for a 24,000-square-foot store on the former K's Merchandise site at 3707 N. Vermilion St., Danville. The city would pay Continental $60,000 annually for five years, for a total of $300,000, to assist with development costs.
The city already approved up to a $2 million incentive agreement with Continental for the entire development site, but plans changed with the addition of T.J. Maxx, because the store will be twice as big as developers expected for a junior anchor. That change increased development costs significantly, so this agreement with the city will help offset some of the developer's additional expense, Mayor Scott Eisenhauer told aldermen Tuesday night.
Continental's site design also was affected by plans for the 191,000-square-foot Meijer store that will be immediately southeast of the Kohl's and T.J. Maxx site on a separate, 23-acre site. About 12 acres of that site, however, is not within the city limits. Meijer has optioned the land, and the current owners have requested that the city annex those acres into the city. The Meijer site also will include a convenience store/gas station and will share the entrance at the stoplight intersection of North Vermilion Street and Boiling Springs Road and the entrance with the Tractor Supply store.
Chris Moore with the Continental development firm told aldermen that the entire project would not have been possible without the incentive agreements. He said these retailers have very short lists right now for new markets they want to enter and without such incentive dollars they would move on to the next market.
Eisenhauer said based on T.J. Maxx sales elsewhere, the city is agreeing to give back about 35 to 38 percent of the sales tax revenue it will receive. Eisenhauer said that is "well below" other agreements the city has made in other retail projects that are closer to 50 to 75 percent of sales tax revenue.