The long-anticipated Target distribution center in Hudson will not open this year or next, and town officials say the delay carries significant financial implications – particularly when it comes to property tax revenue.
At the center of the issue is the project’s lack of a certificate of occupancy (CO), a required approval that confirms a building is complete and safe for use. Without that certification, the massive facility cannot legally operate – and more importantly for the town, cannot be fully assessed as an active commercial property for taxation purposes.
Local officials have indicated that the project remains incomplete, with construction and final approvals still outstanding. As a result, the facility is not yet generating the level of property tax revenue that had been anticipated when the project was first approved.
Because the building has not received its CO, it is being taxed at a lower, incomplete-construction value. That means Hudson is missing out on what would likely be millions in annual tax revenue from a fully operational distribution hub.
The delay appears to be long-term, pushing back both economic activity and tax benefits that were expected to support municipal services and help stabilize the local tax rate.
The slowdown comes as Target navigates a challenging financial period.
The retailer reported declining sales in 2025, with net sales falling about 1.7 percent and earnings also dropping from the previous year. Comparable sales have declined for multiple consecutive quarters, reflecting cautious consumer spending and increased competition in the retail sector.
Despite those challenges, the company has signaled plans for a turnaround, including investing roughly $1 billion in 2026 to improve stores and operations while projecting modest sales growth of about two percent.
Still, the recent financial pressures may be contributing to a more cautious approach to large-scale projects such as distribution expansions.
For Hudson residents, the impact is twofold. First, the absence of anticipated commercial tax revenue can place greater pressure on residential taxpayers to fund town services. Second, economic benefits tied to the facility – including jobs and local business activity – remain on hold.
The distribution center was originally viewed as a major economic driver for the region, bringing both employment opportunities and a significant expansion of the town’s commercial tax base. Without it online, those benefits remain unrealized.
Town officials have not provided a firm timeline for when the project might be completed. Until a certificate of occupancy is issued, the facility will remain inactive – and its financial contribution to the town limited.
For Hudson, the delay represents not just a stalled project, but a widening gap between expected and actual revenue that could affect the town’s financial outlook for years to come.