IS THERE A KOHL'S IN OUR FUTURE?

Carole Osterink

ccSCOOP Editor

01-12-10 - 6:15 p.m. - Late Monday afternoon, the Planning and Economic Development Committee of the Columbia County Board of Supervisors gathered for a special meeting to hear Marco Marzocchi, general counsel for Widewaters, make a presentation about a “special and unique opportunity” for Columbia County: a Kohl’s department store in Widewaters’ Greenport Commons. The corporate motto of the Kohl’s chain is “Expect Great Things,” and that too was the theme of Marzocchi’s presentation.

Here’s the deal: Widewaters currently pays $20,000 to $25,000 (the lack of specificity is Marzocchi’s) in property tax on the vacant land north of Lowe’s where the Kohl’s store would be built. The unabated amount of property tax that would be paid annually if the store were built would be $81,600. Kohl’s wants to build the store and continue to pay the property tax only on predevelopment vacant land for the next twenty years, until 2030. In other words, Kohl’s is seeking a PILOT (payment in lieu of taxes, which typically means a tax abatement).

In a video clip that was part of the presentation, a young African-American man talking enthusiastically about his career and future with Kohl’s made a statement that suggested that management personnel are not developed from the local community but are trained somewhere and then assigned somewhere else. Marzocchi also talked about 150 construction jobs that will be exist while the building is going up and all the work for support maintenance contractors—plumbers, electricians, etc.—that exist on an ongoing basis once the building is built.

Continuing on the theme of economic benefits, Marzocchi told the committee that Kohl’s was “conservatively estimating” $9.1 million in sales in the first year. Marzocchi went on to say that, even given the fact that 72 percent of those sales would be nontaxable because Columbia County does not collect sales tax on clothing items and shoes under $110, the sales tax generated by Kohl’s would be $101,920. Subtract from that the $61,600 given up in property tax, and the net gain to the community would seem to be only about $40,000 a year.

Marzocchi stressed the wonderful opportunity Kohl’s presented for Greenport and Columbia County. He said that Kohl’s is only planning to build 30 stores in 2010, and the competition for those stores is “fierce.” He predicted that Kohl’s will result in “critical mass” making the Columbia County a “retail hub.” He spoke about Kohl’s potential to “revitalize the retail corridor” that is Fairview Avenue/Route 9 in Greenport and make Columbia County a “retail shopping destination.”

According to Marzocchi’s statistics, the women of Columbia County spend $8 million a year on clothing purchases outside the county. The presence of Kohl’s in Greenport, he said, would stop this “leakage.” John Faso, who was present at the meeting and clearly supportive of bringing Kohl’s to Greenport, said that his wife, who now “heads north” to do her shopping in Albany, would likely come to Greenport to shop if Kohl’s were there.

When Supervisor Art Bassin (D-Ancram) wondered aloud why Kohl’s would be willing to walk away from a potential $9.1 in sales over $61,600 in property tax, Marzocchi reiterated that Kohl’s “would not consider building a new store without a PILOT.” He also clarified that T.J. Maxx, which is also reported to be interested in locating in Greenport, would require “the same consideration” and would come to Greenport only if Kohl’s were there, too. “No Kohl’s,” Marzocchi quoted T. J. Maxx as saying, “just don’t bother us anymore.” He also claimed that many smaller stores were ready to sign leases on the vacant strip of stores already constructed at Greenport Commons if Kohl’s comes. “Interest here, if Kohl’s comes, is tremendous,” said Marzocchi.  

Lori Selden, co-owner of Mexican Radio in Hudson, asked why, if the goal was to make Columbia County a shopping destination, Widewaters wasn't trying to attract a store that isn’t everywhere else. There are already Kohl’s stores in Kingston (23 miles away) and Colonie (34 miles away), as well as in Clifton Park and Wappingers Falls. Marzocchi had no answer for Selden’s question but instead asked what store she had in mind.

Although the presentation was made to a committee of the Board of Supervisors, and the chair of that committee, Lynda Scheer (R-Gallatin), seemed favorably disposed to the idea, offering the opinion that Kohl’s would “put the county on the map,” it is not the Board of Supervisors that will make the decision about a PILOT for Kohl’s; it is the Columbia County Industrial Development Agency. Marzocchi said that Widewaters would be applying to the IDA at its February meeting. When one of the supervisors commented that Walmart and Lowe’s had not been given PILOTs, Art Baer (R-Hillsdale) pointed out that “by law, the IDA cannot grant a PILOT to a business that provides a service already existing in the county.” Walmart, because it was already located in the county, and Lowe’s, because it replicated services provided by Herrington’s and Williams’ Lumber, did not qualify; but Kohl’s does, because it is a “full-line" department store,” including furniture, housewares, and electronics among its offerings—categories of mechandise not offered by Peebles, a department store located in Fairview Plaza not far from Greenport Commons.

When asked about the timeline, Marzocchi said that if they get the OK from the IDA in February, they would be looking at a fall/winter 2010 opening. Columbia County could have a Kohl’s in time for Christmas shopping.