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November 8, 2004

Target’s Decision to Build New Distribution Center Brought On By More Than $9.6 Million in Opportunity Returns Grants and Incentives

DEKALB - Governor Rod Blagojevich today announced that Target is building a new 1.5 million-square-foot regional distribution center in DeKalb.  As a part of his historic, regional plan to spur economic growth and create jobs throughout Northeast Illinois, Governor Blagojevich will award more than $9.6 million in support for the new distribution center, which will pay dividends for the local economy by creating 500 new jobs over the next two years and several hundred additional jobs during the first five years of the facility’s operation.  Hiring for the facility will begin in early 2006.  Governor Blagojevich and Target representatives made the official announcement in Dekalb today with various state and local officials. 
“We’re thrilled that Target has decided to locate a new distribution center in DeKalb that will bring hundreds of new jobs to the community.  By being pro-active and ensuring that businesses have all the tools they need to compete and thrive, we’re creating a very appealing business climate that is continuing to lure nationally successful companies like Target to Illinois.  Our goal is to make Illinois the most attractive state to do business in, and we’ll never stop working to make that happen,” said Governor Blagojevich.
Construction on the site located on Fairview Drive began this fall and is expected to be completed in summer 2006.  Each distribution center serves on average 65 to 70 stores in its region.  Regional distribution centers receive shipments from suppliers, ship products directly to Target stores, and provide storage space for merchandise. 
“DeKalb was the ideal location for us to locate a new distribution center,” said Mitch Stover, senior vice president, distribution services, Target Corporation.  “The partnership we received from the City of DeKalb and the State of Illinois was extraordinary.  We look forward to building a long-lasting relationship with the DeKalb community.”
   Support will come from a variety of DCEO’s business development programs, including a Large Business Development Program (LBDP) grant, Business Development Public Infrastructure Program (BDPIP) funding
   to the city of DeKalb for infrastructure improvement assistance, Economic Development for a Growing Economy
(EDGE) tax credits, which are based on job creation projections over a ten-year period, Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce, and additional financial benefits, such as sales tax exemptions and tax credits for job creation resulting from the
company being certified as a High Impact Business.     
The Illinois Department of Transportation (IDOT) is also announcing that the Target distribution facility is eligible for $1,326,850 in Economic Development Program (EDP) funds for construction of Macom Drive and roadway improvements off Peace Road and Fairview Drive in DeKalb.  In addition, IDOT will provide $127,500 from the Truck Route Program to accommodate increased truck traffic on Macom Drive.  The IDOT funding brings the total incentive package of grants and tax credits to more than $9.6 million.
Target currently has 22 distribution centers in 19 states:  Alabama, Arizona, Arkansas, California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Minnesota, New York, Ohio, Oregon, Pennsylvania, South Carolina, Texas, Virginia and Wisconsin.
“There are three resources essential to the success of any business: access to capital, access to markets and access to a world-class workforce.  Illinois’ strategic location provides ideal access to important markets, but Governor Blagojevich’s Opportunity Returns program is proving to be enormously successful because it is making critical investments to ensure that access to capital and a high-caliber workforce are also abundant.  In Target’s decision to locate its distribution center in DeKalb, we’re tasting the fruits of that labor,” DCEO Director Jack Lavin said.
Minneapolis-based Target Stores serves guests at 1,313 stores in 47 states nationwide by delivering today’s best retail trends at affordable prices.  Whether visiting a Target store or shopping online at Target.com, guests enjoy a fun and convenient shopping experience with access to thousands of unique and highly differentiated items.  Target Stores, along with its parent company Target Corporation (NYSE:TGT), gives back more than $2 million a week to its local communities through grants and special programs.  Since opening its first store in 1962, Target has partnered with nonprofit organizations, guests and team members to help meet community needs.
The Opportunity Returns regional economic development plan is the most aggressive, comprehensive approach to creating jobs in Illinois’ history.  Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – finding areas with common economic strengths and needs, and developing a plan with specific actions for each region.  This grassroots effort is a product of significant outreach over several months with business, civic and labor leaders, and elected officials.  Opportunity Returns contains tangible actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to business.

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