IKEA Denies Buying Land for Second Joliet Distribution Center

Caption: IKEA is committed to building a Midwest distribution center in Joliet, similar to an existing facility in Tacoma, WA.

Despite Mayor Tom Giarrante’s announcement to the contrary, Sweden-based international retailer denied that it has purchased land for a second distribution center in the Laraway Crossings industrial park.

IKEA purchased 72-acres in the industrial park for a midwest distribution center in 2007. The Joliet City Council approved the retailer’s updated plans in February. IKEA is currently applying for building permits.

Joliet will serve as IKEA’s Midwest distribution point, servicing ten stores in Illinois, Michigan, Minnesota, Kansas and Ohio. IKEA has two Chicago-area stores in Bolingbrook and Schaumburg.

RELATED: IKEA Might Build 2nd Warehouse in Joliet on Newly Bought Land

Giarrante announced last month that IKEA had recently negotiated the purchase of acreage immediately west of where the home furnishings retailer intends to break ground for a 1.4 million-square-foot distribution center this fall.

“Word we’re getting is [IKEA] is going to build two [distribution centers],” the mayor said. “The economic development director has been in touch with IKEA.”

Giarrante, who’s in a heated mayoral race as he seeks a second term in office, said that IKEA officials have not yet confirmed when the second site will be operational, but the deal is in the works.

“Consider it official,” the mayor said.

Joseph Roth, public affairs manager of U.S. expansion and property for the IKEA group, said that any additional land purchases for a second distribution site in Joliet are “not exactly true.”

“We always evaluate opportunities for the future,” Roth said. “We haven’t committed to anything other than the land we already own.”

RELATED: IKEA Says Construction on Joliet Distribution Center Could Start This Fall

The Swedish home furnishings retailer inked a 849,691-square-foot warehouse lease in Minooka to serve its needs over the next few years, Crain’s Chicago Business reported in February.

IKEA is looking to have the Joliet distribution center it has committed to fully operational by 2017. The project is expected to generate construction-related jobs positions at the distribution center, in addition to property tax revenue generated for local governments and schools, the retailer states.

Roth would not comment on staffing at the distribution center once it’s completed, but a similar distribution operation in the Middle East employs about 230 workers, according to Gulf Business.

Meanwhile, IKEA cannot help but look at the land that the mayor claims the retailer has purchased.

“It’s sitting in front of us.” Roth said.