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

"It's clear to everybody that the facility...is not going to betheir long-term facility," says Doug Smith, director of real estateand development for thecity of Troy. An incentive package to keepKmart 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 nearGrand Rapids and Atlanta. Gov. Jennifer Granholm's spokeswoman LizBoyd says the governor met with chief executive officer Julian Daytwo weeks ago and is working aggressively to make sure Kmart staysin the state.