HomeMy WebLinkAbout03-19-2012 Retail Giant AJ Wright to Pay the City of South Bend $3.2 Million SpU TH 8F
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CITY OF SOUTH BEND
PETE BUTTIGIEG, MAYOR
OFFICE OF THE MAYOR
FOR IMMEDIATE RELEASE
March 19, 2012
Contact:Debra Johnson,Director of Communications
Phone: 574-235-5853
RETAIL GIANT AJ WRIGHT TO PAY THE
CITY OF SOUTH BEND $3.2 MILLION
South Bend AJ Wright, one of the nation's largest retail and outlet stores, will pay the
City of South Bend$3.2 million in penalties for leaving the city last year.
The retail giant opened its doors in South Bend in 2004,but closed its doors, unable to
maintain industry numbers for profitability. Last month,the City of South Bend received
a check from AJ Wright for$354,000.
"AJ Wright lived up to their side of this agreement without hesitation to repay the city for
its investment. I think that's important for people to understand," said Don Inks, Director
of Economic Development for the City. "AJ Wright keeps their property taxes current
and pays their penalties on time. Their move was not because South Bend is not a good
market,but it was a company decision."
Before the company's move to South Bend,the City aggregated the site,performed
demolitions and went through environmental remediation.AJ Wright agreed to a two
phase project that included creation of 313 to 725 jobs over a period of five years. AJ
Wright was subject to penalties if they did not create the number of jobs required in the
agreement with a 90%benchmark for achievement.Those penalties were calculated at
$460 per job.
"AJ Wright owns a 500,000 square foot facility that remains in South Bend that is a new,
modem warehouse that should attract future users," said Inks.
The penalties will be paid annually.Nearly$3.2 million in penalties will be paid by the
company until 2019.
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1400 COUNTY-CITY BUILDING- 227 W.IEFFERSON BOULEVARD-SOUTH BEND,INDIANA 46601
PHONE 574/235-9261 FAx 574/235-9892