9/4/2015 - Lidl buys site in Southpoint II

European discount grocery chain Lidl will open one of its first U.S. stores in Massaponax.

The company closed on a two-acre parcel in Southpoint II last month, said Bill Vakos III, president and chief operating officer of W.J. Vakos & Co.

The property is across Southpoint Parkway from Lowe’s and the new Indian Motorcycles dealership, and adjacent to 7–Eleven.

“Lidl is in the early stages of preparation to operate in the United States,” company spokesman John Froman wrote in an email. “We are taking steps toward that effort. However, we are not able to comment further at this time.”

The chain paid $2.1 million earlier this summer for an 82-acre parcel in Spotsylvania County. The land is next to Luck Stone Quarry and was known as the Coleman family farm. Lidl plans to invest $125 million in building a distribution center there that state officials expect to create 200 jobs.

Lidl is part of the Germany-based Schwarz Group, the largest retailer in Europe and one of the largest in the world. The company operates nearly 10,000 stores in 26 countries throughout Europe, and is the chief competitor of German discount grocery chain Aldi, which already has multiple stores in the Fredericksburg region.

Gov. Terry McAuliffe has approved $5 million in grants from the Governor’s opportunity fund to assist Spotsylvania and Arlington, where Lidl will build its U.S. headquarters. He also approved $2 million in funds from the Virginia economic development incentive grant, a self-funded program of performance-based incentives the state awards to exceptional economic development projects.

Additional funding and services to support the company’s employee training activities will be provided through the Virginia jobs investment program and Spotsylvania. The county’s Board of Supervisors unanimously approved a $9.7 million incentive package for Lidl in July.

The company also will receive personal property tax rebates of up to $5.7 million over 17 years and sales tax rebates of up to $1.8 million over the same time period.

In addition, the incentives include a $450,000 grant to extend water and sewer lines to the distribution center and a $300,000 grant to cover the cost of construction permits and other county fees.