Target, Aldi to open locations in Brookings

24 December 2024

After years of trying to lure the national retailer, Target is headed to Brookings.

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 will also be part of the regional mall being developed by Minneapolis-based Ryan Companies US, Inc. In addition, up to two smaller shops are expected to fill the centre’s 18.53 hectare site. Construction of the marketplace is expected to start in the spring and extend into 2026.

“I am extremely proud and excited to make this announcement,” Niemeyer said Monday, after the transaction paperwork was finalized, in a statement from the city. “The City of Brookings has been working to bring Target here for several years. The patience and cooperation of the Council, city leadership and the Ryan Companies have prevailed. I look forward to celebrating the groundbreaking in 2025.”

Minneapolis-based Target Corporation currently has nearly 2,000 stores across the United States. About 30 are near college campuses, according to the company’s website. Measure stores nationwide range in size, with the typical store 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 in a Brookings Economic Development Corporation (BEDC) survey. In 2024 and in 2019, the top three picks in order have been Target, Aldi and Kohl’s.

“Our community members have been asking for diverse shopping and retail opportunities with national brands, and the City Council and staff are proud to deliver on that request,” Vice Mayor Nick Wendell said in a statement. “I know residents of Brookings and surrounding communities will be thrilled to 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 the city to shop.”

This will be the sixth goal 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’s budget, officials said. Around 45 percent of the city’s income already comes from VAT.

According to BEDC research, Brookings Marketplace is expected to support 148 jobs. The economic output from these 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 the vitality of Brookings, and I expect it will attract more businesses to our community,” Wendell said. “I also have no doubt that it will benefit existing businesses, as it attracts more shoppers to the city. As they say, 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 improvements,” he said.

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

In February 2023, the city entered into 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 10-acre purchase agreement in November 2023. A referendum halted development until after the Jan. 30 special election, where voters supported the revised 10-acre plan 1,255 to 708.

Then in June, Ryan announced the anchor tenant’s re-entry, and the Council voted to allow Ryan to purchase an additional 8.53 acres of the Brookings Marketplace property. In November, the City Council approved a tax increment financing (TIF) district and economic development grant for the Brookings Marketplace development to help facilitate needed infrastructure work.

According to the new TIF, infrastructure work is expected 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 about $5.5 million in incremental funding, which is where the city’s $2,250,000 financial assistance grant will help Ryan. The developer will front the project costs entirely, with reimbursement only for approved 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 into,” he said.