News
September 09, 2008
Target plans $73 million expansion
9.09.2008
Target plans $73 million expansion
By Martin L. Cahn
C-I (Camden, SC) senior editor
Target Corp.’s Lugoff distribution center will become the company’s largest distribution center in the country following a planned $73 million expansion, according to Lugoff General Manager Gene Wise.
Kershaw County Council is scheduled to take third and final reading Tuesday of an ordinance authorizing an amendment to the county’s Fee-In-Lieu-Of-Taxes (FILOT) agreement with Target as an incentive to go ahead with the expansion.
“We’ve put in a plan for an expansion of the distribution center of an additional 450,000 square feet, which will bring our total square footage to 1.8 million,” said Wise. “It’s a 20-month project from start to finish… and will provide us the ability to send more merchandise to our stores as Target continues to grow.”
Wise said Target is adding more stores in the Southeast.
“It’s a significant investment in Kershaw County. We’re pretty excited about it (and) Target is very happy about Kershaw County. It’s a great place to live, play and do business,” Wise said.
He said the company originally planned on only a 350,000-square-foot expansion but found that it is able to afford the additional 100,000 square feet. The $73 million investment will not only pay for the additional space but new equipment and technology to go with it.
“It’s going to be a huge building. It will have pretty much what we have today, just more of it—conveyors and additional computer systems to handle the heavier flow,” said Wise. “There’ll be some technological advances that I can’t reveal for proprietary reasons.”
Wise said there will be some additional jobs with the investment but likely not until the project is completed.
“I can’t really quantify that for you, but we’ll be growing. As we add more stores, at that point in time we’ll add more people,” he said.
He said Target is appreciative of the support the Kershaw County community has shown toward the company.
“Target is very happy about Kershaw County and very happy with the work force,” he said, “I think this will be great for the community.”
Kershaw County Council Chairman Steve S. Kelly Jr. said the county is encouraged by the news.
“We’re very, very excited with the investment and that they’re going to put it in our community,” said Kelly. “It’s a good boost for our tax base. There’ll be some jobs, but a really nice capital investment that will serve our community well.”
Kelly called Target a “very good corporate neighbor,” one that is “very clean” with a low environmental impact.
“The management and employees at Target have been wonderful people to have in Kershaw County. Gene Wise and others have become an active part of our community. It’s great to have a very good corporate neighbor and a very supportive industry in our community decide to expand,” he said.
Kelly said Kershaw County Economic Development Director Nelson Lindsay, who is out of town on an economic development mission, has worked closely with Target.
“I want to thank him for working with them the last few months on this,” Kelly said. “As a council member, I’m very supportive of Tuesday’s third reading. Target has been pleased with their relationship with the county. They could have done this any number of locations around South Carolina and the Southeast. We’re just excited they chose to make their investment here.”
He called the FILOT amendment and Target’s proposed expansion an “win-win” situation for the company and Kershaw County.
“This is a really good announcement during an economic downturn,” said Kelly.
Wise said Target is able to launch the expansion project despite the economy because of its niche in the marketplace.
“We’re a fashion retailer a discount prices,” said Wise. “Even during tough times, people like good merchandise at good prices. So we continue to roll that out. Our business model is working.”
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