CEDAR FALLS -- Target Corp. plans to build a new retail store in Cedar Falls within the next two years as well as a previously announced cold-storage warehouse, according to documents to be presented to the City Council Monday night.

A proposed development agreement requires Target to build both the cold storage warehouse, called a "perishable foods distribution facility" and a 127,000-square-foot, $5 million retail store, operational by July 31, 2009. A location for the new store is not specified.

"The bottom line is that Cedar Falls will likely have a new Target retail store in addition to the Target Corporation Perishable Foods Distribution Facility," city community services manager Bob Seymour wrote in a memo to Mayor Jon Crews and council members.

The City Council is expected to approve the agreement Monday during its regular meeting. The agreement is specifically for a 425,000-square-foot perishable foods distribution center, to be located south of the existing distribution center. The $80 million project is expected to bring another 125 to 150 full-time jobs to the area over the next three years.

Both the store and new warehouse would be in addition to the present Target warehouse. Under the original development agreement for that facility, Target estimated it would need up to 900 employees. However, increased automation for material handling has reduced that figure to less than 600, less than the job-creation goal stated.

To address that employment issue, Target would receive a 250-employee credit from the new distribution center and a 150-employee credit from the retail store that would go toward the original 900-employee figure.

City officials said the construction of a new distribution center will also make Cedar Falls the first city in the United States to house both a general merchandise and perishable foods distribution center, valued at nearly $200 million.

The council meeting is scheduled to begin at 7 p.m. at City Hall.

Contact Emily Christensen at (319) 291-1570 or emily.christensen@wcfcourier.com.