A new Walmart superstore will be built along Randall and Bowes Roads by fall 2011 on a 73-acre development that will also eventually include a Sam’s Club and other stores and eateries on surrounding outlots.
The property was initially annexed to the City in 2006 when Walmart proposed the construction of a nearly 204,000-square-foot store and garden center. Walmart later showcased a newer store design and proposed to reduce its original store plans by nearly 25,000-square-feet. The new proposal also incorporates various environmentally-friendly components in the more than 177,000-square-foot store – including an underground treatment system for runoff water.
Kane County also required nearly $11 million in intersection and road improvement work on Randall Road. To help pay for the improvements, Elgin agreed to rebate Walmart one-third of its sales tax revenue up to $8 million over 10 years after both stores are completed. The City estimates sales tax revenues from both stores and the outlots will ultimately generate about $3.3 million annually.
“It’s an $8 million investment to get a return of $40 million in sales tax revenues over 15 years,” said Elgin City Manager Sean Stegall. “Additionally, the agreement provides that Walmart give hiring preference to Elgin residents for new jobs.”
Walmart will close its existing Royal Blvd and Randall Road location once the new superstore is opened.
“We’re thrilled to move this project forward,” said Stegall. “Economic development agreements like this help generate needed sales tax revenues to fund City operations.”