Von Maur announced Wednesday it will open a store at Quail Springs Mall after the city of Oklahoma City approved a sales tax incentive worth $2 million over 10 years.
The Davenport, Iowa, based department store is just the second retail outfit offered such a deal by the city as a way to increase its sales tax base. The Outlet Shoppes at Oklahoma City, which opened in August 2011, is eligible to receive up to $5.5 million in reimbursements for regional marketing costs over 10 years.
Von Maur said the 150,000-square-foot Oklahoma City store will open in the fall of 2014 and will be the first in the state. It is expected to generate $40 million in annual sales, city documents show.
In its agreement with the city, Von Maur can receive a sales tax rebate of up to $225,000 the first year and $275,000 by the eighth year. To qualify, the retailer's sales must be at least $27.5 million the first year and $30 million each year after for the remainder of the agreement.
Von Maur will replace Sears as an anchor tenant at Quail Springs Mall; the Sears closed Feb. 1. A subsidiary of General Growth Properties, which owns the mall, agreed to spend at least $15 million buying and remodeling the space as part of the tax incentive agreement. County records show $8 million was spent purchasing the property from Sears.