Politics & Government

Walmart to Get Tax Break for New Naperville Supercenter

City unanimously approves tax incentive, which allows for retailer to relocate and develop a new 170,000 square-foot Walmart Supercenter near 75th Street and Beebe Drive.

Naperville City Council members voted unanimously Tuesday night to adopt a resolution that will give a sales tax incentive to relocate within the city.

Under the incentive, Walmart receives a sales tax rebate of $1.75 million over the course of 10 years. This would allow the retailer to close their current Naperville location, 776 S. Route 59, to develop a new 170,000 square-foot Walmart Supercenter at the southeast corner of 75th Street and Beebe Drive.

The proposed supercenter will be 50,000 square-feet larger and will also include a grocery.

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City Council members said approving the resolution was necessary to keep Walmart in Naperville as the retailer had plans to move their new store to Aurora if they did not receive the sales tax rebate.

“What this rebate does, it takes over 10 years, $1.75 million of incremental sales tax dollars,” said council member Grant E. Wehrli. “This is an incentive to retain Walmart who was talking about moving, literally across the street on the other side of Route 59, and taking their sales tax revenues with them to Aurora.”

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During the public comments portion of the agenda item, one resident asked why the city should give any type of break to a company that brought in more than $400 billion in revenues last year, according to Fortune Magazine.

“Walmart’s current financials clearly indicate that they are capable of operating a superstore without the aide of $1.7 million in tax subsidies,” said Naperville resident Kent Bevel. “So, my question to you is, ‘Why are we subsidizing a company of Walmart’s stature and profitability?'”

Council member Paul Hinterlong said if the retailer moved to Aurora, the city would risk losing the sales tax revenue Walmart generates, which is roughly $500,000 a year.

“They will go away if we don’t do what we need to do tonight,” Hinterlong said. “And losing them will just hurt our budget even more and make it that much more harder to balance our budget.”

In the past, similar tax rebates have been given to other large companies in Naperville like , and most recently Naperville Marriott. The city said the incentive helps “prime the pump” for tax revenue returns down the road.

“And nobody wants to give anybody a handout, especially to a major corporation like Walmart,” Wehrli said. “This is retaining sales tax dollars.”

Wehrli added that in recent years the sales tax revenue from Costco was greater than all of the sales tax revenue generated throughout the city’s downtown.

Under the resolution, the city will not provide any “up-front” money for the project and the incentive is “pay as you go.”

“I think the city of Naperville is in a situation where Walmart is using their leverage as a public company,” Bevel said. “I would go back to Walmart and ask them, as a responsible corporate citizen, that they remain in Naperville and not ask for the $1.7 million.”

Council member Douglas Krause said keeping Walmart within Naperville will not only benefit the city, but also help to create employment opportunities.

“It’s going to create jobs and that’s what we need right now,” he said. 


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