Wal-Mart Readies 165,000-SF Store for the Meadowlands

The site itself is currently owned by Vineland Development Corp., a local group, and would require remediation before it could be redeveloped. Officials estimate that it will cost upwards of $10 million for Wal-Mart of buy and clean up the site, which has been used mostly for warehousing purposes in the past. It has been vacant since 1997, however.

The project on the table involves not only the 165,000-sf Wal-Mart, according to Kearny Mayor Alberto Santos, but also a 33,000-sf freestanding pad site. Not directly related but also part of the mix is a Lowe's home improvement center: According to Santos, city officials are negotiating with that retailer for an adjacent site as well. Wal-Mart itself could be open as early as the end of next year, say local officials.

The ongoing negotiations with Wal-Mart have been three-party, multi-jurisdictional talks, also involving the New Jersey Meadowlands Commission. The regional body has oversight for the entire Meadowlands, and early this year overhauled its master plan. The changes included clearing the way for retail development in the so-called Kearny meadows region, a move that officials say put the Wal-Mart talks into high gear.

Also part of the negotiations are some tax incentives that would be used by Wal-Mart to at least partially offset the acquisition/remediation costs. Officials have declined to comment on the potential incentives.

Of potential benefit is the fact that the site is located within a state-designated urban enterprise zone. One of the terms of such designation is that the sales tax collected within the UEZ is just half of the state's prevailing 6% rate. And the city itself would get a cut of the 3% sales tax that would be collected.

The new store figures to half a substantial population to draw from. This town of 40,000 is situated directly between Newark and Jersey City, the state's two largest cities.