The Oswego Village Board recently authorized an economic incentive agreement of up to $1.5 million to assist the owners of the Prairie Market East shopping center with plans to construct a 25,000-square-foot building addition for future retail tenant HomeGoods.
Prairie Market East is at 300-540 Fifth St. in Oswego and is anchored by Aldi and PetSmart. The proposed building addition for HomeGoods would be built between the two anchors, officials said.
Village staff has been working with Edgemark, a subsidiary of Prairie Market 24 LP, since it purchased the shopping center in September 2024. The original plans said that the proposed addition could be for either a single tenant or multiple tenants depending on market demand, Oswego Economic Development Director Kevin Leighty said in his report to trustees.
Village staff was notified earlier this year from HomeGoods owner TJX Companies that previous plans to open in the former Lowe’s Garden Center in the Prairie Market shopping center had not progressed “due to the deal no longer being viable for the landlord,” Leighty said.
TJX Companies then “connected with Edgemark to revive their plans for opening a new store in Oswego at Prairie Market East,” Leighty said.
“TJX Companies received initial approval to move forward with the new site a few months later. Edgemark then approached the village about the potential for financial assistance to cover the gap that exists to make the project viable,” he said.
The village required detailed project financials, Leighty told trustees.
“The financial information provided a detailed project budget … and sales projections,” Leighty told the Village Board.
Leighty said “the additional construction and financing costs were the key factors that went into the calculation of a potential incentive amount.”
The agreement will begin once the retail space is constructed and ready for business with an occupancy permit issued for HomeGoods no later than July 1, 2027, Leighty said.
Starting on the date of HomeGoods opening, the village will rebate 100% of the municipal sales tax shared by the state that is generated by the business up to 15 years or a maximum of $1.5 million, whichever comes first, he said.
The developer will be required to refund the rebate to the village if HomeGoods closes or the site is left vacant without another business within two years, he said.
The project is expected to produce a substantial amount of tax revenue which would more than make up for the proposed incentive, Leighty said.
“Even with this sales tax sharing, the financial impact is considerable,” he said.
During the length of the incentive, the project will continue to generate an average of $144,000 annually in Home Rule sales taxes. Once the terms end, the project will generate a combined total of more than $300,000 in annual sales taxes, he said.
Linda Girardi is a freelance reporter for The Beacon-News.
