A new Target store that straddles Oakland and Emeryville will pump about $550,000 in annual sales tax revenues into the two cities, economic development officials said Tuesday.
Oakland Mayor Jean Quan and Emeryville Mayor Nora Davis were on hand Tuesday for the traditional "ribbon-cutting," as well as food, beverages and live entertainment from local school bands. The store opens Wednesday and will hold a public grand opening Sunday.
"This store provides jobs, sales taxes, services. Plus to have Target here giving to the local community is really amazing," said Helen Bean, director of the Emeryville Economic Development & Housing Department.
Target officials said that nationwide, the more than 1,700 stores give back 5 percent or roughly $3 million a week to the local communities. In Emeryville and Oakland, schools and community programs will benefit.
The store, at 1555 40th St. in the East Bay Bridge Retail Center, is covered by a revenue-sharing agreement between Emeryville and Oakland. The agreement, reached in July 1994, was required because the center is located on 16 acres in Oakland and 34 acres in Emeryville. The agreement requires that revenue from sales taxes, business licenses taxes, real estate transfer taxes and utility taxes be split. Two-thirds goes to Emeryville and one-third to Oakland. The allocation of sales is after 5 percent goes to Alameda County, said Harry Hamilton with Oakland's Community & Economic Development Agency Hamilton.
Based on projections, the new Target store is expected to generate between $134,000 and $181,000 per year in sales tax revenue for the city of Oakland, Hamilton said.
Bean said Emeryville will get between $250,000 and $300,000 per year in sales tax revenue.
The new 140,000-square-foot Target store, formerly a Kmart and most recently a home design store, was upgraded and reconfigured in record time, roughly two years. It will employ about 300 people, 90 percent from Oakland and Emeryville, said Target spokeswoman Donna Egan. The store includes a full supermarket.
"I am trying to woo them for a downtown Target. I think Oakland is ripe for (that)," Quan said.
The closest Target stores are in Albany and San Leandro.
While the store opening was welcomed like a two-for-one sale, not every Bay Area city wants the big box store in their city. Target has been trying to move into the Shoreline Center in East San Rafael for months now, but many are opposed to the 137,000-square foot store with an expanded grocery section.
Some local businesses and neighbors have concerns about the store's impact on traffic and that the retail giant will pull profits from smaller stores. Others, however, say they would welcome Target's discount prices, as well as the 250 jobs and $675,000 in sales tax revenue the Minneapolis-based company has estimated the store would generate. San Rafael city leaders are still studying the impact of such a store.