West Coast Distribution Center Construction Right on Target

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Target Corporation (NYSE:TGT) (Minneapolis, Minnesota) is at the halfway completion point on construction of its distribution center in Rialto, California. The $70 million regional distribution center is expected to employ 500 initially, and Target expects that number to grow to approximately 1,300 within five years. The distribution center is located Casa Grande and Alder Avenue in northwest Rialto.

Harris Architects Incorporated of Palatine, Illinois, was the architect for the project, and the Irvine office of Baltimore, Maryland-based Whiting-Turner Contracting Company is the general contractor overseeing construction of the 1.6 million square foot building. Construction began in the fall of 2004. Target has begun hiring managers, team leaders and recruiters for the distribution center, which will open in May or June of 2006. Once complete, the distribution center will receive shipments from suppliers, ship products directly to Target stores, and provide storage space for merchandise.

Before Target could begin construction, the site needed to undergo extensive environmental remediation. The Department of Justice and the U.S. Environmental Protection Agency spent nearly $1 million to assist in the cleanup of the Denova Environmental Superfund Site in Rialto, California. Target also invested $1 million to cleanup the site before redevelopment could begin. Target was reimbursed for the cleanup by the former owner of the site. The site was used by the Army during World War II for transportation and temporary storage of ordnance-loaded railcars. From the mid-1980s through May 2002, the site was operated privately by two different companies - first Broco Environmental Incorporated and then Denova Environmental Incorporated, as a chemical and explosives storage and disposal facility. In May 2002, the EPA began an emergency removal of hazardous materials and explosives abandoned at the site by Denova Environmental. The hazardous materials and explosives were located only 75 yards from the nearest residential neighborhood. The removal took eleven months, cost $3 million, and resulted in the cleanup of over 550,000 pounds of explosives, more than three times the legal limit allowed to be stored at any one facility. The EPA was assisted by the Marine Corps, the San Bernardino County Fire Department Hazardous Materials Unit, the San Bernardino County Bomb Squad, the FBI and Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the California Department of Toxic Substances Control, and the Rialto Fire Department.

Target Corporation began in 1902 as The Dayton Dry Goods Company in Minneapolis. Over the next 100 years, Target has grown through the acquisition and sale of other retail operations, such as Mervyn's and Marshall Field, and the introduction of SuperTarget and Target Greatland. Target Corporation, headquartered in Minneapolis, Minnesota, is listed as the nation's #2 discount chain operator with 1,275 Target and SuperTarget stores in 47 states. Target, SuperTarget, and Target Greatland accounted for 85% of the company's 2003 sales. In 2004, Target sold its Marshall Field and Mervyn's department stores, after years of struggling to turn these stores around. Target currently has 25 distribution centers in 21 states.

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