X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

KEARNY, NJ-Discount giant Wal-Mart, which has been aggressively building new stores in New Jersey of late, is set to put up a nearly 165,000-sf unit on a 27-acre industrial site along Bergen Avenue in this Meadowlands submarket city. According to a published report, Wal-Mart has been negotiating for more than a year with local and regional officials, and the deal could be sealed shortly.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.