TROY, MI-When Kmart had 5,500 people working at its headquarters, it was working in a uniquely designed building on Big Beaver Road in Troy. Now, 2,000 employees are working in the same building.

While Kmart isn’t commenting on the record, all indications are that it is looking for a new site for its main office. Paul Krepps, a spokesman for the Michigan Economic Development Corp., and others say the discount retailer is interested in moving elsewhere in the same city, another city in Michigan or another state.

“It’s clear to everybody that the facility…is not going to be their long-term facility,” says Doug Smith, director of real estate and development for thecity of Troy. An incentive package to keep Kmart in Michigan wouldnot be unlikely, says Krepps, who adds “there is not a specific package on the table.”

Kmart has been rumored to be looking at locations in or near Grand Rapids and Atlanta. Gov. Jennifer Granholm’s spokeswoman Liz Boyd says the governor met with chief executive officer Julian Day two weeks ago and is working aggressively to make sure Kmart stays in the state.

“We are making it clear to Kmart,” she says. “There should be no doubt in their mind that Michigan wants Kmart to stay in Michigan.”

Krepps says he didn’t know when Kmart will make a decision. Kmart emerged from bankruptcy in May 2003 with about 1,500 stores — 600 fewer than before, and has continued to pare down its work force this year. The company has a total of 144,000 employees, down from 158,000 at the end of January.

In 2000, the state gave Kmart a $15.9-million tax credit when it built a high-tech development center. The company got a $14.3-million tax break for an IT building in 1998. It also received grants to train new workers.

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