Xperience Fitness has signed a letter of intent to move into the previously-vacant Kmart on East Sunset Drive.
The letter is for about 40,000 of the 120,000-square-foot building. Xperience Fitness, as a result, will move out of its smaller location on West Sunset Drive.
Community Development Director Steve Crandell said the Milwaukee-based Endeavour Corp. is buying the building and will invest $13 million into the site for the redevelopment and to create two new tenants, which could house retail stores and restaurants.
The building will be in a tax incremental financing district (TIF) and includes a $2.6 million pay-as-you-go TIF incentive to help finance the project.
Crandell said the TIF district requires that Endeavour spend money up front.
"We're not borrowing city tax dollars for this project," Crandell said. "The developer fronts all of the money, so there's no risk to the city."
A public hearing before the Plan Commission on the TIF district was scheduled for last night.
The Kmart has been vacant for the last two years.
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter Get the Newsletter!
- Waukesha Community Briefs: HAWS events, holiday events and more
- Waukesha Police Report: Nov. 20, 2014 issue
- Complaint: Waukesha man abused, threatened his girlfriend with a knife
- Family of Waukesha parade's grand marshal also has reason to be thankful
- Waukesha holiday tree-lighting ceremony salutes military on Friday
- Armored vehicle not shielded from Waukesha budget debate
- Sen. Paul Farrow announces bid to replace Waukesha County Executive Dan Vrakas
- Burlington's city administrator Kevin Lahner selected to same position in Waukesha
- Waukesha Common Council approves a 2.73 percent tax levy increase for 2015
- Doctor says Waukesha stabbing suspect in Slender Man case now competent to continue