Sales tax rebate on the table for developer of former Macomb Kmart
The city of Macomb and Carrington Real Estate Investments LLC agreed to a sales tax rebate for the California-based company – but there is a catch.
At least one of the tenants in the former Kmart building must be a TJX-brand retailer, and must be open for business at the site by June 30, 2026.
TJX describes itself as “the leading off-price apparel and home fashions retailer in the U.S. and worldwide” with more than 4,800 stores. The company’s brands in the U.S. include TJ Maxx, Marshalls, HomeGoods, Sierra, and Homesense.
Kim Pierce, Executive Director of the Macomb Area Economic Development Corporation, called the rebate incentive a good deal for Macomb.
“Sure it is, because if you didn’t have any development there, you wouldn’t have sales tax generated anyway, and we wouldn’t have near the potential to promote Macomb as a place to come shop, stay, live.”
Rebate payments to Carrington are capped at $1.5 million. Mayor Mike Inman said the money will come from the general sales tax and will not affect the city’s infrastructure sales tax.
Inman said they want to give shoppers more options in Macomb.
“A lot of our dollars are leaving the community to make purchases outside of Macomb,” the mayor told the city council.
“This project is designed to either create or retain 50 to 100 jobs. The annual gross sales for the fully redeveloped property are estimated between $13 - $15 million in gross annual sales.”
The more than 90,000 square foot building has been empty since Kmart closed the store in the autumn of 2016. Carrington bought the building through a public auction this year.
The plan calls for two or three other retailers to also open in the building.
“We couldn’t be more excited for the opportunities that we’re going to see come out of these commercial and retail developments that we hope come to fruition soon – early in 2024,” said MAEDCO’s Pierce.
“We are going to be able to offer fresh, new retailers to our area. I truly think this is going to be a really good project for Macomb.”
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