Kohl's corporate headquarters in
MENOMONEE FALLS - Kohl’s Corporation announced Thursday
it no longer intends to construct its new $250 million
headquarters in Menomonee Falls, but will instead
purchase two buildings close to its existing
headquarters, a decision the village administrator said
the company accepts.
Falls Village Manager Mark Fitzgerald said village
administration was advised of the corporation’s decision ahead
of the public announcement.
reasonably comfortable with things and pleased that they would
be staying in the village and still able to grow and expand here
in Menomonee Falls,” Fitzgerald said.
Cunningham, a spokeswoman for Kohl’s, said the company intends
to keep its headquarters in Menomonee Falls.
issued a statement Thursday detailing its plans to acquire the
300,000-square-foot former Innoware building at W165-N5830
Ridgewood Drive in the Silver Spring Corporate Park, which is
across the street from Kohl’s main headquarters building at
N56-W17000 Ridgewood Drive in Menomonee Falls. The company
intends to convert the Innoware building into the Kohl’s
corporate facility for its IT associates.
also entered an agreement to purchase the former ProHealth Care
medical building at W165-N5595 Creekwood Crossing, which is
28,000 square feet in size and is located across from the Silver
Spring Corporate Park. That building will house the
corporation’s expanded associate wellness center and an
associate fitness facility.
The two new
facilities provide Kohl’s with an additional 360,000 square feet
of space for its corporation operations and will increase its
capacity by 40 percent, according to the statement.
decision, as we shared in 2012, our goal has been to find the
location that best positions us to remain an employer of choice,
retain and attract the best talent and to satisfy our
responsibilities to our shareholders and associates,” Cunningham
said in an email.
“We knew the
planning process would require ongoing consideration and
flexibility and that some of the tentative plans we laid out in
2012 may change. Acquisition of these facilities allows us to
meet our goals. We are enthusiastic about these plans and what
it means for our growth and our associates.”
As part of the
agreement between Kohl’s and Menomonee Falls for the new
headquarters, the village provided the land in the Woodland
Prime Office Park in the tax incremental district No. 10 for the
building. Now that the corporation won’t build there, Fitzgerald
said the land will be deeded back to the village at no cost.
building will return to village
400,000 -square-foot distribution center off of Lilly Road that
is being used by Kohl’s IT department will be returned to the
village and eventually will be converted into a village’s public
works building, Fitzgerald said.
So far, the
village has not invested in roadway projects or interchange
improvements, which were also part of the deal with Kohl’s.
cancellation of the project, Fitzgerald said, won’t have an
effect on the tax base because the village will now market the
land slotted for the Kohl’s headquarters for other class A
office development and will still create additional tax base.
“This is not a
negative story at all,” Fitzgerald said. “They are staying here
in the village and expanding.”
the company’s Milwaukee photo studio, 11300 West Heather Drive,
Menomonee Falls credit center, N54-W13600 Woodale Drive, and
Lake Park office, 7800 N. 113th St., Milwaukee, will not be
affected during the transition, according to the statement.
chief of staff for Waukesha County Executive Dan Vrakas, said
the county’s administration is pleased that Kohl’s is staying in
the county, describing the company as part of the “economic
fabric of the community.”
Kohl’s reported third-quarter net income that dropped 18
percent. The company said it earned $177 million, or 81 cents a
share during the third quarter. A year earlier, it earned $215
million, or 91 cents a share. Revenue in the third quarter also
fell 1 percent to $4.44 billion.
sales at stores open at least a year fell 1.6 percent compared
with a 1.1 percent gain a year ago.
“As we enter
the holiday season, we believe we are well-positioned from a
merchandise content and inventory perspective to gain market
share,” Kevin Mansell, Kohl’s chairman, president and chief
executive officer said in a statement last week. “We have
increased our marketing spending and improved its impact and
reach in order to drive higher traffic to our stores and