The Irving, TX-based retailer plans to close a large distribution center in Kentucky and some other smaller centers around the country and consolidate its operations at a site in Northern Builder's new 206-acre Cherry Hill Business Park along I-80 near U.S. 30. The company needs the facility to keep pace with rapid expansion of new stores, with plans to open 55 more this year.
Michaels has been actively seeking a site for the distribution facility since November, when it hired Colliers Bennett and Kahnwieler to advise it on the search.
It has been negotiating with Northern Builders to develop the facility in its Cherry Hill Business Park. Once completed, the business park will include 1,200-acres extending south to Laraway Road and west to Cherry Hill Road. Michaels would join two separate buildings that broke ground in October including Titan Steel's 115,000-sf building to be finished by April 2003 and an 185,000-sf spec building.
The New Lenox Village Board, New Lenox Grade School and Will County Board previously approved the abatement request. It calls for the two school districts and the village to get half the property tax income for the first five years and all the tax income at the end of the five years. And although the abatement applies only to the building and not the property, the company would generate about $700,000 in additional property tax during the five-year abatement period and about $700,000 annually after that.
Arrangements are still being wrapped up respecting state incentive provided through the Illinois Department of Commerce and Community Affairs, but an agreement is expected by the end of this month.
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