Wal-Mart move a win for Homewood, loss for Glenwood
By Mike Nolan email@example.com December 26, 2013 6:38PM
Wal-Mart plans to close a store at 19255 S. Halsted St. in Glenwood. The retailer will open a Supercenter in a former Super Kmart store in Homewood that closed earlier this month. | File photo
Updated: January 28, 2014 6:24AM
Homewood will gain a Wal-Mart Supercenter, with the world’s biggest retailer renovating a recently closed Super Kmart.
Wal-Mart, however, will close an existing store in Glenwood, although Homewood officials will consider sharing with their municipal neighbor part of the sales tax revenue the new store will generate, Homewood Mayor Rich Hofeld said Thursday.
It’s unclear when the Glenwood store, which is not a Supercenter, will close or when the new Homewood location will open.
Wal-Mart has submitted plans for making renovations to the former Kmart, 17550 S. Halsted St., but hasn’t given an estimate for when the store will open, according to Hofeld.
The Kmart closed Dec. 15, the latest in a string of closings around the Southland that has seen parent Sears Holdings shed Kmart outlets in communities including Crestwood, Homer Glen and Oak Lawn.
The 149,000-square-foot Glenwood Wal-Mart, at the northeast corner of Halsted Street and Holbrook Road, opened in September 2005.
Hofeld said he was first approached by Wal-Mart representatives in October about reusing the nearly 200,000-square-foot Kmart space. At that time, Wal-Mart wanted Homewood officials to consider an arrangement whereby the village would share with the retailer some of the sales tax revenue generated, a request Hofeld said he flatly refused.
“If they wanted to come in (to Homewood) they could come in,” he said. “I wasn’t going to give any incentive.”
Hofeld, however, said it bothers him that his village’s gain will result in lost tax revenue for Glenwood, and he’s talked informally with trustees about turning over to that community 10 percent of the village’s share of sales tax revenue. Under the proposal, which the board has not yet voted on, sales tax revenue would be shared for three years, the mayor said.
“It’s the right thing to do,” Hofeld said, adding that trustees are supportive of the plan.
Hofeld said Wal-Mart representatives expect the store could have annual sales of about $75 million, which would translate to $750,000 in tax revenue to Homewood.