Walmart Expansion Project Moves Forward

As Darien continues to prepare for the opening of a Super Walmart, the city council approved two motions Monday related to the current store’s expansion.

The ordinances authorized “the conveyance of certain property” to Walmart Stores Inc. and , the company that manages Darien Towne Center, as part of the economic development agreement the city had previously signed with the businesses.

The city council unanimously approved the $4 million economic incentive package April 2, a deal Walmart said was necessary to help the store expand into a Super Walmart at its location in Darien Towne Center at 2189 75th Street.

City Attorney John Murphey explained the ordinances approved Monday involve “two small pieces” of property, which Mayor Kathleen Weaver described as in the “turnabout area” behind the store. According to the agreement signed in April, Walmart and Inland will pay nothing for the approximately 3 acres of property.

Murphey said Inland and will participate in a two-part real estate closing, in which the parties will open an escrow account where all property deeds, subdivision plats, etc., will be deposited. The City of Darien will deposit the deeds for the two parcels of land into the escrow account, Murphey said, and “if the deal blows up,” the title company will return the deeds to the city.

Darien Community Development Director Dan Gombac commented there is no solid date for completion of the project, although Wal-Mart officials had set a target for the expansion to a Super Walmart to begin in November. Gombac said the store will remain open throughout the remodeling process.

City signed deal to keep Walmart in Darien

Before the city council approved the deal with Walmart in April, Murphey warned council members the retail giant had threatened to leave Darien if the city failed to agree to the $4 million economic incentive package. And, since Walmart owns the building it currently occupies, the space could remain empty indefinitely – and the city would lose the nearly $900,000 in tax revenue brought in by the retail giant each year, Murphey added.

“It would be a knife in the heart to Darien Towne Center to lose Walmart,” Murphey said.

How much more sales tax revenue will Super Walmart produce?

According to the economic incentive deal signed April 2, Darien will continue to receive about $900,000 in annual sales taxes from Walmart, but will rebate $300,000 of the amount to Walmart and $200,000 to Inland Southeast Darien until each company has received a total of $2 million. Murphey has calculated it will take 12 to 15 years to meet that goal.

Walmart officials have said the expanded 75th Street Walmart will encompass 180,000 square feet and create 80-85 new jobs -- and Darien’s city attorney has estimated the Super Walmart will bring in 25 to 30 percent more sales tax revenue than the store in its current configuration.

In addition to anchor stores Walmart and Home Depot, Darien Towne Center is currently occupied by PetSmart, Deals, O'Reilly Automotive, TGI Friday's, Fruitful Yield, Panera Bread, Aodake, Jenny Craig, Sally Beauty Supply, Great Clips, Aldi and BMO Harris Bank.

and plan to move east into the space that once housed Circuit City, but  has decided to close its Darien store.