Published: November 13, 2009 06:56 pm      

City, Kohl's finalize incentive plan

By TESA CULLI

tesa.culli@register-news.com

MT. VERNON — The city has finalized an economic incentive agreement with Kohl’s Department Store offering incentives for the business to commit to building here.

The city has been working with officials from the company for more than 18 months to finalize agreements and get commitments.

“In June 2008, we submitted a memorandum of understanding that we would enter into an incentive agreement at such time Kohl’s would start building a store in Mt. Vernon,” City Manager Ron Neibert explained. “Kohl’s has committed to building a 64,000-square-foot facility and the city will reimburse them 1/2 of the regular 1 percent retail occupation tax we collect until such time that Kohl’s receives $1.5 million.”

In September, Kohl’s started site preparation work at 141 S. Davidson, next to Staples.

“This is a sign we are going in the right direction,” Mayor Mary Jane Chesley said of the new business. “We have the right people, the right planning and taking the right actions. ... There has been a lot of hard work put in by a lot of people to get this together.”

About four years ago, the city was in direct competition with Effingham to get a Kohl’s Department Store, and incentives offered by that city was the reason Kohl’s built there instead, according to Neibert. Effingham created a special 1 percent business tax with 100 percent of all taxes collected going to Kohl’s until the company received $1.5 million.

“There are a number of infrastructure projects involved with building, and the city is not participating in those,” Neibert said. “They will be extending Davidson, putting in water and sewer lines, and moving a sewer line that has to be relocated. They’ll pay for all of that, not the city.”

Kohl’s is one of the nation’s largest retailers, and is based in Menomonee Falls, Wis. The company began in 1962, and now has stores and distribution centers in 48 states.

According to company information, Kohl’s is a family-focused, value-oriented, specialty department store offering exclusive and national brand merchandise.