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.