YTB International Inc. is planning a $6 million renovation of the former Kmart property so it can move its headquarters and more than 100 jobs to town, which is currently located at 1 Country Club View Drive in Edwardsville and has annual revenue of $30 million, is working with a local group, Hedgewood Development Co., and city officials in a effort to bring the company to town.
City Manager Jim Schneider said YTB's announcement comes on the heels of another development group's plans to demolish the former Kmart along Illinois Route 143 to make way for a $10 million to $12 million automobile dealership complex that will include Federico Chrysler-Dodge Inc. and Jack Schmitt of Alton Inc. (Alton Centers Nissan).
Mayor Fred Ufert said the new plan calls for the dealerships to instead build on land west of the Kmart property, at the intersection of 143 and Lakin Boulevard.
"We're just getting additional business, which is great for the city," Ufert said.
Andy Cauthen, chief operating officer of YTB, said executives with the company are thrilled about moving to Wood River. They liked their location in Edwardsville but the company was unable to find property large enough to accommodate the growing business.
"We simply outgrew our space and needed more room," Cauthen said.
He said after the company moved into its Edwardsville digs in 2005 it started to grow and within the first month the business, which had occupied two floors needed more room.
"We believe we will have enough room at the new location," he said. "There is nearly 100,000 square feet that we can renovate."
Ufert said the city was notified on Friday that YTB definitely plans to move its corporate offices to Wood River.
"We're excited about it," he said. "It creates construction jobs, which is something we like to see."
Ufert said the city did not offer the company any incentives to move.
On Monday night the City Council tabled an amendment of the economic incentive agreement it had voted on regarding the dealerships in June. The agreement calls for the city to rebate a portion of sales tax during the next 10 years. The amendment reflects the new location of the dealership complex.
Cauthen said the company liked the location and could renovate the old Kmart site for around $40 per square foot, which is significantly less than the $200 per square foot it would cost to construct a new building.
A company profile given to city officials show a projected three-year growth for YTB.
Cauthen said Lloyd "Coach" Tomer and his son Scott Tomer, along with J. Kim Sorenson, started the travel company in 2001 inside the First National Bank building on East Third Street in Alton with six employees. Since then, the business has grown into a financially stable and publicly traded company that develops, sells and supports on-line travel booking engine Web sites and has more than 35,000 referring travel agents nationwide.
The company operates three divisions: yourTravelBiz.com, REZconnect Technologies Inc. and YTB Travel Network. It currently employs 107 people, Cauthen said.
By June 2009 the company projects it will employee around 600 or more people and will earn more than $338 million in revenue.
Cauthen said the company's track record of growth during the next three to five years anticipates salaries of more than $35 million for the Wood River-based staff. He said more than 30,000 guests will tour the home office and spend $6 million or more on hotels and $3 million on meals and entertainment; and the company will spend almost $2 million on food services special events and training for the sales force.
Hedgewood purchased the 13-acre site where the Kmart building is located in 2003.
Don Brown, executive director of Hedgewood, said the development group had planned to redevelop the site, however it seemed too costly to rehab the former retail store until now. He said the project was a win-win situation for all involved.
Hedgewood also owns the 8-acre site where the dealerships will locate and another 11 acres across the road adjacent to Shop 'N Save.
Schneider said he believes the two projects will spur even more development along Illinois Route 143. He also envisions one day building a hotel in that area.
Hotel chain executives have talked with city officials about wanting to build on the east end near Illinois 255, Ufert said.
Schneider said YTB executives informed him that if a hotel were built in Wood River they would be able to guarantee a set number of bookings per month, which could be a nice incentive for a hotel chain.
Cauthen said each year between 8,000 and 10,000 people travel to the company from all over the United States for training and to learn more about the business.
"Most of the people who fly here stay for a few days and they usually have to stay outside of town," he said.
Once the final details are worked out, renovation of the building is expected get under way sometime this fall.
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