WEDC creates enterprise zone for Kohl’s expansion in Menomonee Falls
Company will keep headquarters in Wisconsin
Gov. Scott Walker today announced an agreement between Kohl’s and the Wisconsin Economic Development Corp. in which the WEDC will create an Enterprise Zone to provide up to $62.5 million in state tax credits over 12 years to support new corporate facilities for the Menomonee Falls-based retailer. The deal means Kohl's will keep its headquarters in Wisconsin.
Under the agreement, Kohl’s would assume ownership of approximately 100 acres of vacant land in the Woodland Prime office park in Menomonee Falls. Kohl’s also will acquire a small office building adjacent to the vacant land, which will provide the company an opportunity to develop office space that would serve as a second corporate campus.
In exchange for the building and land, the Village of Menomonee Falls will assume ownership of Kohl’s 530,000-square-foot former distribution center located at N54 W13901 Woodale Drive. The transaction is expected to close this fall.
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. Upon Kohl’s decision to begin construction, Menomonee Falls will provide the necessary road improvements and up to $12 million, payable over several years, from the incremental tax revenue to be generated by the Kohl’s development.
Following the development of a second campus, Kohl’s plans to continue operating its current headquarters at N56 W17000 Ridgewood Drive and credit service center located at N54 W13600 Woodale Drive in Menomonee Falls.
The actual amount of the state tax credits received by Kohl’s will depend on the number of newly created jobs and the amount of Kohl’s capital investment.
WEDC can designate Enterprise Zone Tax Credits for a project based on factors that include the extent to which the project will increase employment and contribute to the economic growth within the state.
Earlier, Kohl’s rejected a proposal to relocate its headquarters to downtown Milwaukee.