Wahpeton officials work out deal to keep J.C. Penney store

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WAHPETON (AP) - City officials say they have worked out a deal to keep the J.C. Penney store here open.

Mayor Jim Sturdevant said Wednesday that Penney officials agreed to stay if the building's ownership is transferred to the Wahpeton Community Development Corp., if repairs and upgrades are made to the building and if a multiyear lease can be worked out.

The community development corporation took over the building from Wahpeton developer Jerry Meide. Sturdevant said the store likely will be closed for remodeling before a grand reopening promotion.

City officials said earlier that J.C. Penney Corp. was planning to close its Wahpeton store in November because of the deteriorating condition of the building.

"They were surprised about how quickly we reacted to their closing announcement," Sturdevant said Wednesday. "Once they found out that we were serious in keeping the store open, they became real receptive to our plan."

The exact number of employees at the Wahpeton store is not known. J.C. Penney has been in Wahpeton since 1914. City officials said the store has a good sales record.

After getting confirmation from his regional supervisors, store manager Mike Berseth told employees that the Wahpeton store would remain open. He said it's good news for downtown Wahpeton.

Five different committees discussed the matter with J.C. Penney corporate officials, Wahpeton Economic Development Director Jane Priebe said.

"I am very pleased with the local team effort," Priebe said. "From the day we learned they'd close to today's announcement, we've had many hours of meetings and phone calls and resources used to get to this point."

The city's Community Development Corp. plans to buy from Meide what amounts to five buildings that now house the store, for a price still being negotiated.

The Wahpeton Economic Development Commission recommended sales tax money be used to buy the buildings, and the City Council voted to waive guidelines for a revolving loan fund so the work could get under way.

"It was all a time issue," Priebe said.

The city's offer includes a partial rent abatement during the first year and a two-year lease commitment from J.C. Penney.

City officials expect it to take three or four weeks to make repairs to the buildings, including roof work, wiring and insulation. The work is expected to begin later this month.

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