Kohl's Destined for Porterville Valley Voice Newspaper | 08-Feb-2010
Kohl's Destined for Porterville
Porterville - Porterville City Council members were expected to approve a plan that will pave the way for Kohl's to take over the former Mervyn's site on Henderson Avenue in that city. And in Hanford, Kohl's is reportedly eyeing the old Mervyn's site at the Hanford Mall. John Lollis, Porterville city manager, said the council was to take up the matter Tuesday night for approval. The final details were worked out during a special meeting of the council last week. According to Lollis, the plan calls for the city to put up $2.7 million - the value of the land and improvements, to Henderson Prospect Partners, the developers of the shopping center, to make the lease attractive to Kohl's. If all goes as planned, Kohl's could take possession of the building in January and open by the fall of 2010. "It is essentially a partnership," said Lollis of the plan that would have the developers pay the city interest only for 10 years when the principle would be due. Lollis said the interest would amount to about $50,000 a year to the city. "Interest being paid is more than what's being paid in the market," he said of the approximately $500,000 the city will make on the interest over the 10 years. Kohl's began in 1962 when Max Kohl opened the first Kohl's Department Store in Brookfield, Wis. Today, it operates 1,022 stores in 49 states with more than 118,000 employees. Kohl's has opened a number of stores this year alone, many of them in former Mervyn's stores. The Porterville Mervyn's store was part of that company's bankruptcy last year. That store opened in 1991. Lollis is excited about Kohl's coming to Porterville, and is especially excited to see the city fill the vacant Mervyn's store. That store is one of two anchors to the center. Target recently demolished its store on the southern end of that center, rebuilt it and opened it late last year. The center is also home to several smaller stores, including Maurice's and Big 5 Sporting Goods. Lollis said with Kohl's coming, it should reopen the door for Ross to open up in the same center. He said Ross was set to come to the center before Mervyn's closed, but has hesitated since the center did not have two anchors. "It should facilitate the opening of the Ross store," said Lollis. He added Kohl's is planning an extensive remodel of the building - roughly $3.4 million worth of work. Also, he expects Kohl's to add about $100,000 annually to the city's sales tax revenue, a real shot in the arm in a down economy. Plus, Kohl's should offer about 70 job and if Ross comes in as well , the two stores will employ about 135 people. In Hanford, City Manager Gary Misenheimer says mall officials and representatives of Kohl's paid a visit to his office several weeks ago to inquire about steps needed to reopen the shuttered store including contacts for permit applications like signs. "They didn't make a commitment" cautioned Meisnheimer - but he is hopeful a deal that would again fill the major hole in the mall may be at hand. Sources say that an agreement is "very close" that could mean Kohl's could open by next summer at the Hanford Mall. The former Grocery Warehouse in Porterville is owned by developer Dave Paynter who is negotiating with Ross. Ross and Kohl's are side by side in Visalia where Paynter owns a shopping center as well. Sources say Kohl's will open in more new markets including Clovis and Sonora in 2010, often in blocks of stores to maximize publicity
