Dec. 24, 2024

After years of attempting to attract the national retailer, Brookings is getting Target.

The big-box retailer will be the anchor tenant at the Brookings Marketplace property north of Sixth Street and just east of Interstate 29.

National grocer Aldi also will be part of the regional shopping center under development by Minneapolis-based Ryan Cos. US Inc. In addition, up to two smaller stores are expected to fill the center’s 18.5-acre site. Construction on the Marketplace is expected to start in the spring and stretch into 2026.

“I am extremely proud and excited to make this announcement,” Mayor Oepke “Ope” Niemeyer said in a statement Monday after transaction paperwork was finalized. “The city of Brookings has been working to bring Target here for several years. Patience and collaboration by Council, city leadership and Ryan Companies has prevailed. I’m looking forward to celebrating the groundbreaking in 2025.”

Minneapolis-based Target Corp. has almost 2,000 stores across the United States. About 30 are near college campuses, according to the company’s website. Target stores range in size, with the typical one averaging about 125,000 square feet. The Brookings Target store is expected to be 127,000 square feet.

Since 2013, Target has been the top retailer requested by respondents to a survey by the Brookings Economic Development Corporation. In 2024 and in 2019, the top three choices in order have been Target, Aldi and Kohl’s.

“Our community members have been asking for diverse shopping options and national-brand retail opportunities, and the City Council and staff are proud to be delivering on that request,” Deputy Mayor Nick Wendell said in a statement. “I know residents from Brookings and neighboring communities will be excited when they no longer have to drive nearly an hour to shop at two of their favorite retailers. Shoppers will benefit, and the city of Brookings will benefit because we will reduce the retail leakage that occurs when people leave town to shop.”

This will be the sixth Target in South Dakota. There are two in Sioux Falls, one in Rapid City and others in Aberdeen and Watertown.

The additional sales tax will benefit the city budget, officials said. About 45 percent of the city’s revenue already comes from sales tax.

According to BEDC research, the Brookings Marketplace is expected to support 148 jobs. The economic output from those jobs is estimated at $15.7 million for a city tax revenue of about $200,833 each year. Direct sales tax revenue is estimated to run from $1.1 million to $1.5 million each year.

“The Marketplace development is a testament to Brookings’ vitality, and I expect it will attract more businesses to our community,” Wendell said. “I also have no doubt it will benefit existing businesses as it attracts more shoppers to town. As the saying goes, a rising tide lifts all boats.”

Niemeyer called the Marketplace development a “once-in-a-generation project.”

“The Brookings Marketplace development project represents an investment in the Brookings community, and it has the potential to bring significant economic, social and quality-of-life enhancements,” he said.

The city has been working to develop the 26.25-acre Marketplace property since buying it in November 2013 from the South Dakota Department of Transportation. In 2022, Ryan approached the city about buying 18.53 acres for retail and commercial development.

In February 2023, the city entered an agreement with Ryan, and the land was transferred to BEDC to facilitate the purchase. A change of heart by the then-unannounced anchor tenant led to an amended purchase agreement of 10 acres in November 2023. A referendum halted the development until after a Jan. 30 special election in which voters supported the revised 10-acre plan 1,255 to 708.

Then in June, Ryan announced the reentry of the anchor tenant, and the City Council voted to allow Ryan to buy an additional 8.53 acres of the Brookings Marketplace property. In November, the City Council approved a tax increment financing district and economic development grant for the Brookings Marketplace development to help facilitate necessary infrastructure work.

Per the new TIF, infrastructure work is projected to include more than $9 million in eligible costs for streets, water, sanitary sewers, storm sewers, grading, landscaping and more. The TIF is expected to generate $5.5 million in incremental funding, which is where the city’s $2,250,000 economic assistance grant will help Ryan. The developer will front the project costs entirely, with reimbursement coming only for authorized expenses, according to city manager Paul Briseno.

Briseno said the city will continue to work closely with Ryan and the Marketplace tenants to ensure a strong community partnership. “Brookings is open for business, and we look forward to continuing to be the choice for businesses of all kinds to expand to,” he said.