Kohl's to stay in Wisconsin, get $62.5M in tax breaksKohl's Corp. and the state of Wisconsin announced a deal Thursday that keeps the department store chain's headquarters in the village of Menomonee Falls, about 20 miles northwest of Milwaukee.
By: The Associated Press, Superior Telegram
MENOMONEE FALLS, Wis. (AP) — Kohl's Corp. and the state of Wisconsin announced a deal Thursday that keeps the department store chain's headquarters in the village of Menomonee Falls, about 20 miles northwest of Milwaukee.
Kohl's will receive up to $62.5 million in tax credits from the state over 12 years, with the final amount dependent on the number of employees it adds there and the amount of money Kohl's invests in developing its campus.
"Strengthening Kohl's headquarters is good news for Wisconsin," Gov. Scott Walker said in a statement. "Not only is this a significant number of jobs, but it also signals that Wisconsin's economic climate is improving."
Kohl's will take ownership of about 100 acres in Woodland Prime, a Menomonee Falls business park, and will also acquire a small office building adjacent to the land.
In exchange, the village will assume ownership of Kohl's 530,000-square-foot former distribution center in the village. The company said it plans to build a second corporate campus on the vacant land and continue to operate its current headquarters in Menomonee Falls.
Kohl's has about 4,900 employees at its corporate locations throughout the Milwaukee area.
CEO Kevin Mansell said in a statement that Kohl's always preferred to stay in Wisconsin but needed time to study its options, including a possible move to another the state. The statement didn't say which states the company considered.
"We have been proud to call Wisconsin home for the last 50 years, and are pleased to be renewing our commitment to the state ... by selecting this location in the place where it all started for us," Mansell wrote.
Kohl's had looked into moving its headquarters to Milwaukee, but it dropped those plans earlier this year without explanation.
The transaction is expected to close this fall.
Once Kohl's begins construction in Menomonee Falls, the village will contribute up to $12 million in public funding and provide necessary road improvements.
Shares of Kohl's Corp. were up 10 cents, or 0.2 percent, to $49.29 in morning trading Thursday. Shares have traded in a 52-week range of $42.14 to $57.39.