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Target to more than double its workforce By BRITTANY KEEPERMAN bkeeperman@shawmedia.com DeKALB – The Target Corp. distribution center will more than double its workforce by May, a company official told the City Council on Monday. The center, at 1115 Macom Drive, employs about 350 workers, but by May, compa-
ny officials plan to increase total employment to more than 800, said Mike Milano, general manager and director of distributions with Minneapolis-based retailer Target. “We are very confident that, here in DeKalb County, we have the talent needed to make this a reality,” Milano said. DeKalb is home to one of
On the Web Visit Daily-Chronicle. com for a video. Target’s 38 U.S. distribution centers. The facility on Macom will become what the company calls an upstream distribution center, which
means expanding its scope and headcount, officials announced Monday. Target has more than 1,800 big-box locations across the nation. Once the expansion on the DeKalb facility is complete, the center will distribute products to one-third of those stores. The change represents about $50 million added investment in the area,
Milano said. Upstream distribution centers typically handle products that aren’t in steady demand, such as seasonal or promotional items, Milano said. “It’s regional merchandise. It’s promotional merchandise. It’s fad or trendy merchandise,” he said. “Upstream distribution centers will handle all those things
for which there is not a very significant demand history.” The distribution center on Macom was built in 2006. Target received millions of tax incentives for the project. The current expansion was initiated by Target, not the city, DeKalb Mayor John Rey said.
See TARGET, page A5
Rauner says he has plan to end court-ordered spending woes
BUILDING’S CONDITION IN QUESTION
By IVAN MORENO and ASHLEY LISENBY The Associated Press
Danielle Guerra file photos – dguerra@shawmedia.com
Crews contracted by the city of DeKalb work July 31 to inspect the front of the space that once housed Ducky’s Formal Wear and connects to the Otto’s building along Lincoln Highway in downtown DeKalb after serving a search warrant to allow the city to enter the building.
Otto’s owner faces lawsuit By BRITTANY KEEPERMAN bkeeperman@shawmedia.com DeKALB – National Bank and Trust Co. is suing the owner of the building that formerly housed Otto’s Nightclub for failure to maintain the structure, and city officials said they are remaining involved in talks about the building’s future. The building in downtown DeKalb, at 112-118 E. Lincoln Highway, has been vacant since a burst pipe left the property uninhabitable about two years ago, and owner Pat Looney soon after surrendered his liquor license to the city. In July, the city obtained a search warrant and conducted an inspection on the property, which found that the cost of repairs most likely would exceed the value of the building, DeKalb City Attorney Dean Frieders said. “It’d be possible if you’d invest
to breach the mortgage agreements. “Mr. Looney for his part asserts that he has complied with and continues to perform all material promises and warranties made in the subject note and mortgage,” according to court documents filed in December in DeKalb County Circuit Court by Looney’s attorney, Michael Coghlan. NB&T’s loan officers knew of the condition of the building – which had passed previous building inspections before the pipe burst – when Looney took out the Photo provided The interior of Otto’s in DeKalb is seen in a photo taken by the city during an loan, Coghlan said. Building inspection reports investigation survey last summer. The music venue and bar space had been were not immediately available. closed since January 2014 after the city declared the building uninhabitable The promissory note reads that because of a burst water pipe that flooded the building. Looney “promises at all times to enough,” he said. “But it likely in quickly accruing interest and preserve and maintain the propwouldn’t be a good investment.” late-payment fees. Looney claims erty and every part … in good reNB&T wants Looney to pay it that the bank can’t support pair and working order.” the outstanding mortgage loan its allegation that the building of $445,754, plus thousands more has deteriorated badly enough See LAWSUIT, page A5
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SEMESTER OF TUITION?
SPRINGFIELD – Gov. Bruce Rauner said Monday he will outline a plan to get out from under court-ordered spending that is plunging Illinois further into debt during a seven-month budget stalemate. Even without a budget, the state has been required to continue spending on things such as Medicaid and services for people with disabilities because of federal consent decrees and court orders. Rauner said in an interview with The Associated Press that getting out from under those will “be a big part of our plan going forward,” but he declined to offer specifics on his idea, which one analyst said would require court approval. The new state legislaGov. Bruce tive term begins WednesRauner day, and the Republican governor is marking his first year in office Tuesday. It’s been a tumultuous year for the wealthy businessman, who has battled with Democrats over the state’s spending plan. It should have taken effect July 1. Rauner has said a budget needs to include reforms that he argues will help the state economy, such as curbing the power of unions and passing business-friendly laws. He also wants term limits and changes to how legislative districts are drawn every decade. Democrats, who hold supermajorities in the Legislature, say they won’t cave to some of Rauner’s demands because they would hurt the middle class. It is unclear how Rauner can get out of the court-mandated spending, which is running up a big tab on state expenditures. That is because the state is spending based on revenue levels from last year, when the individual Illinois income tax rate was at 5 percent, not the current rate of 3.75 percent. A recent report from the Governor’s Office of Management and Budget said that if the current spending levels continue without new taxes or the legislature cutting spending, the deficit for the fiscal year ending in June will be $4.6 billion.
See RAUNER, page A5
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