Target to take over former Kmart location
QUINCY (WGEM) - Target, the retailer long-hinted by city leaders to take over the former Kmart property at 3701 Broadway in Quincy, has filed a memorandum of lease for the property.
The agreement between Target Corp. and landlord GMX Quincy LLC is dated April 28 and was filed Monday with the Adams County clerk and recorder.
The agreement states there has been or will be constructed a one-level building consisting of 104,000 square feet which will be expanded by 7,208 square feet to about 111,208 square feet.
The agreement also states the property will include other one-level buildings consisting of about 15,000 square feet and 475 parking spaces.
The term of the agreement is for 15 years with a tenant option to extend the agreement by up to eight terms of five years each.
Target also has the option to lease additional portions of the property and expand the building.
Tuesday morning, a Target spokesperson also confirmed the plans to open a Quincy location.
“I can confirm Target has plans to open a store in Quincy,” the spokesperson said in a written statement. “We’re excited to bring an easy, safe and convenient shopping experience to new guests in the Quincy community with this new Target store. Located at 3701 Broadway Street the store will be approximately 104,000 square feet. As we get closer to opening the store, we’ll have more specific details to share – including how the shopping experience will be tailored to serve local guests and the grand opening date.”
The City of Quincy signed an incentive agreement with GMX Real Estate Group on Feb. 22. While city leaders have dropped hints that Target was the retailer, they have never publicly said it, citing a non-disclosure agreement.
The incentive agreement gives the developer 548 days to complete reconstruction and renovation of the vacant retail anchor site, with time consideration for unavoidable delays. The incentive period is 10 years from the time Target opens, beginning on the first day of the next month, should the store not open on the first of a month.
The incentives stipulate the city will pay to the developer on a quarterly basis $1 for every $2 of sales taxes the city receives from the gross sales generated from the anchor store, now known to be Target, until the city has paid the developer $1 million (known as the Initial Development Incentive) and retained $2 million. The payments will commence the month after the Target store reaches $4 million in gross sales.
After the initial $1 million has been paid, the city will keep the next $3.25 million in sales taxes.
After the city has collected that money, if Target generates more than $1.125 million in sales taxes in any 12-month period during the 10-year incentive period, the city will pay the developer 50% of any sales taxes generated in excess of the $1.125 million.
Payments will be made quarterly, due 30 days following the end of the quarter.
‘I think you’ll be very pleased’
During a finance committee meeting in February with the developers, 4th Ward Alderman Michael Farha said “when the public gets the terms of the agreement they’re going to realize there are a very limited number of places it could be.”
He then pointed to requirements in the agreement that the retailer must be in the top 20 of U.S retailers and have greater than $50 billion in sales.
Farha then directly asked the developers what he called the million-dollar question, “Who is the new tenant?”
The developers replied they would love to tell him, but to do so would jeopardize the deal.
Farha asked, “If you’ve seen the building you know it’s an ugly brown and I assume when you get done, just by the process of elimination, that building is going to be white. And then I assume the colors on the logo are going to be red and white.
One of the developers replied, “We’re very proud to say, the building is going to look spectacular.”
Farha continued, “Am I over the target? Just answer this one question: Am I over the target? And I’ll let go.”
One of the developers replied, “I think you’ll be very pleased with the retailer.”
The developer closed on the property on April 29 and fenced off the property for reconstruction last week.
The documents filed Monday do not indicate when the store might open, but the developer previously said they were targeting April 2023.
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