Elgin may finally ink Walmart superstore deal

Elgin leaders are prepared to offer up to $8 million in incentives for a new Walmart superstore and Sam's Club to be built along Randall and Bowes roads on the city's far southwest side.

Elgin Corporation Counsel William Cogley outlines a new agreement with the world's largest retailer that the city council will consider Wednesday night.

The agreement calls for Walmart to pay for $3 million in improvements to Bowes and at least $2 million of the estimated $10 million to widen a portion of Randall Road to six lanes.

The city will rebate one-third of sales taxes collected from the new Elgin store back to Walmart to the tune of up to $8 million.

City officials predict that entire development will produce $3.3 million a year in sales tax revenue 15 years from now.

"The city has been given the opportunity to invest $8 million and get a return of $40 million (in sales tax over a 15-year span)," said Elgin City Manager Sean Stegall. "It also speaks highly of the community that Walmart wants to make this type of investment."

If the council gives the green light, construction likely will begin in a few weeks with construction lasting 10 to 12 months.

The 73 acres at the southwest corner of Bowes and Randall was initially annexed by the city in 2006.

"It's huge. I was an early supporter of the Walmart and I've been waiting anxiously for it to open," said Elgin Mayor Ed Schock. "I can't wait for it to go forward. It's a great opportunity for Elgin."

Walmart also reduced the size of its proposed store from 203,619 square feet to 177,557 square feet.

Once built, Walmart will close its existing Elgin location at Royal Boulevard and Randall.

The plan contains seven other lots, including one large one that likely will be broken up into several more.

Cogley said the agreement limits banks and fast food restaurants to two each and prohibits laundromats and payday loan stores.

Walmart officials could not immediately be reached for comment Monday, but in the past have said about 75 to 100 employees will be added to the 225 already at the current Walmart store, while Sam's Club will have about 175 workers.

The agreement also states that Walmart give hiring preference to Elgin residents for initial new jobs created, advertise jobs in newspapers and host a job fair, Cogley said.