December 24, 2024

After years of trying to lure the national retailer, Target is heading to Brookings.

The major retailer will be the anchor tenant in the Brookings Marketplace property north of Sixth Street and east of Interstate 29.

National grocer Aldi will also be part of the regional shopping center being developed by Minneapolis-based Ryan Companies US, Inc. In addition, up to two smaller stores are expected to fill the center’s 18.53-acre site. Construction of the marketplace is expected to begin in spring and last until 2026.

“I am very proud and excited to make this announcement,” Niemeyer said Monday in a statement provided by the city after transaction documents were finalized. “The city of Brookings has been working to bring Target here for several years. Patience and cooperation from the City Council, city leadership and Ryan Companies prevailed. I look forward to celebrating the groundbreaking ceremony in 2025.”

Minneapolis-based Target Corporation currently has nearly 2,000 stores across the United States. About 30 of them are located near college campuses, according to the company’s website. Target stores across the country vary in size, with the typical store averaging about 125,000 square feet. The Brookings Target store is expected to be 127,000 square feet.

Since 2013, Target has been the most requested retailer by respondents to a Brookings Economic Development Corporation (BEDC) survey. In 2024 and 2019, Target, Aldi and Kohl’s were the top three providers.

“Our community members have asked for diverse shopping and national brand retail options, and the City Council and staff are proud to honor that request,” Deputy Mayor Nick Wendell said in a statement. “I know residents of Brookings and surrounding communities will be thrilled to no longer have to drive nearly an hour to shop at two of their favorite stores. Shoppers will benefit, and the city of Brookings will benefit because we reduce the retail losses that occur when people leave the city to shop.”

This will be the sixth destination in South Dakota. There are two in Sioux Falls, one in Rapid City and others in Aberdeen and Watertown.

The additional sales tax will benefit the city budget, officials said. Around 45 percent of the city’s revenue already comes from sales tax.

According to BEDC, the Brookings Marketplace is expected to create 148 jobs. The economic output of these jobs is estimated at $15.7 million, which translates into city tax revenue of approximately $200,833 per year. It is estimated that direct sales tax revenue is $1.1 million to $1.5 million each year.

“The Marketplace development is a testament to the vitality of Brookings and I expect it will attract more businesses to our community,” Wendell said. “I also have no doubt it will benefit existing businesses by attracting more buyers to the city. As the saying goes, a rising tide lifts all boats.”

Niemeyer called the Marketplace development a “once-in-a-generation project.”

“The Brookings Marketplace development project represents an investment in the Brookings community and has the potential to deliver significant economic, social and quality of life improvements,” he said.

The city has been working to develop the 26.25-acre Marketplace property since purchasing it from the SD Department of Transportation in November 2013. In 2022, Ryan approached the city to purchase 18.53 acres for retail and commercial development.

In February 2023, the city entered into an agreement with Ryan and the property was transferred to BEDC to facilitate the purchase. A change of heart by the then-unannounced primary tenant led to an amended purchase agreement for 10 acres in November 2023. A referendum halted development until after the January 30 special election, in which voters supported the revised 10 Acre plan by a vote of 1,255 to 708.

Then in June, Ryan announced the re-entry of the anchor tenant and the council voted to allow Ryan to purchase an additional 8.53 acres of the Brookings Marketplace property. In November, the City Council approved a county and economic development tax increment financing (TIF) grant for the Brookings Marketplace development to facilitate necessary infrastructure work.

According to the new TIF, infrastructure work is expected to include more than $9 million in eligible costs for roads, water, sewers, storm drains, grading, landscaping and more. The TIF is expected to generate approximately $5.5 million in additional funding. Ryan is supported by the city’s $2,250,000 Economic Assistance Grant. According to City Manager Paul Briseno, the developer will cover the entire cost of the project and reimbursement will only be made for approved expenses.

Briseno said the city will continue to work closely with Ryan and the Marketplace tenants to ensure a strong community partnership. “Brookings is open for business and we look forward to continuing to be the first choice for businesses of all types to expand into,” he said.