Kelley Automotive Group and Menards jointly will spend upwards of $60 million on business expansion, relocation and infrastructure improvements, the companies announced March 7.

Kelley Automotive will move five dealerships currently located in the 14/69 Auto Mall – BMW, Volvo, Cadillac, Buick, GMC and the Kelley Superstore – to Illinois Road, adjacent to Menards. Also moving will be the parts and service departments, car wash and the Kelley Automotive body shop currently located in the 14/69 Auto Mall. The investment will total $45 to $50 million.

Menards plans a $5-$6 million project that will enhance customer pickup for residential and commercial consumers at both the 6310 Illinois Road and 5511 Meijer Drive locations. Each location also will debut a new mezzanine level that will feature additional products and improve the customer shopping experience.

Menards will partner with Kelley Automotive to improve traffic flow by establishing new entrances and additional access points to both Menards and the new Kelley Auto Mall on Illinois Road. Together, the two companies will invest $12-$13 million to improve the infrastructure.

Together, the investments are expected to generate an incremental $45 to $50 million of tax revenue for the city of Fort Wayne, which will work with the developers on public infrastructure improvements that will be needed for the development.

Witwer Construction will be the developer for all infrastructure and the Kelley Automotive construction project.

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