Retail  November 22, 2024

Firestone braces for potential windfall with planned new Target store

An elevation shows the planned Target store in Firestone.
An elevation shows the planned Target store in Firestone. Source: Firestone planning documents.
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FIRESTONE — The long wait to stop the leakage of Firestone sales-tax dollars to Longmont is right around the corner. The Firestone Town Board this week approved a deal to bring a Target store to town that is expected to generate not only building and property taxes but also an estimated $1.5 million in annual sales tax revenue.

The board signed a development agreement with Firestone, its Urban Renewal Authority and Target Corp. (NYSE: TGT) that will reimburse the company $2.5 million for land acquisition costs, as well as grant them $2.8 million worth of water credits to bring the store to the Firestone City Centre.

“American Furniture Warehouse and Home Depot put Firestone on the map regarding big box commercial, but that was some years ago, 12 years at minimum,” said Firestone Mayor Don Conyac. “Target is now starting our renaissance of our commercial … it is going to usher in more commercial development. Who doesn’t want to be near a Target?”

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Target is coming to town via the Staenberg Group out of St. Louis, Missouri. The company will develop the Target on a 21-acre lot near Home Depot. Target will specifically build a 128,660-square-foot store on 11.46 acres there, and it will easily be seen from travelers passing Colorado Highway 119 and Interstate 25.

“It’s excellent, the intersection of I-25 and 119 is one of the busiest interchanges in Northern Colorado,” said Paula Mehle, director of economic development for the Town of Firestone. “It has the highest traffic count, and it’s anticipated to continue to grow, as an area.”

While it is impossible to tell exactly how much sales-tax leakage the story will prevent from seeping out of Firestone, Mehle calculated that with grocery sales taxes being exempted, the new Target could bring in upward of $1.5 million in sale taxes, based on National Retail Federation’s calculations of Target’s average annual store sales of about $54 million per store.

“Residents have been pleading, ‘Please bring us more retail,’” Mehle said. “Since Target is in Longmont on the west side, and Westminster’s is 14 miles away, there’s a great separation so they won’t be hurting other Target stores.”

That also means a new Target likely will draw from nearby Fort Lupton or Platteville and Mead, whose residents perhaps no longer wish to drive to Longmont to shop.

The development agreement between the Firestone Urban Renewal Authority and Target calls for a reimbursement of $1.25 million once Target is granted its certificate of occupancy; and another $1.25 million after the store is open for six months, which is intended to help offset the cost of land acquisition. The town also is granting the store 40 water credits for the store’s use, plus irrigation needs. That would have to be repaid at $70,000 per credit if the store doesn’t perform, or owners change their mind midstream.

“We know that will be paid back over time in revenue through sales taxes,” Conyac said. “It is going to be a windfall for the town, and it’s definitely going to help our revenue.”

Conyac said his list of needs will start with town infrastructure.

“Right off the bat for me, it would be area roads and streets,” he said. “Without a doubt, we need to think about upgrading Colorado Boulevard, eventually that’s going to need to be upgraded.”

The town not only has Target to celebrate, but many other smaller retailers have opted to locate into town.

“There’s another QuikTrip, Chick-fil-A, Discount Tire, and Panda Xpress just announced last week,” Mehle said. “There’s just more development happening. We’ve got a lot more residential coming in, we’ve got commercial land under contract.

“I anticipate now with Target, there will be more to come, because retail brings retail,” Mehle said. “We anticipate there will be more retail announcements coming.”

Target is expected to break ground in 2025, and open in 2026.

The long wait to stop the leakage of Firestone sales-tax dollars to Longmont is right around the corner. The Firestone Town Board this week approved a deal to bring a Target store to town that is expected to generate not only building and property taxes but also an estimated $1.5 million in annual sales tax revenue.

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Sharon Dunn is an award-winning journalist covering business, banking, real estate, energy, local government and crime in Northern Colorado since 1994. She began her journalism career in Alaska after graduating Metropolitan State College in Denver in 1992. She found her way back to Colorado, where she worked at the Greeley Tribune for 25 years. She has a master's degree in communications management from the University of Denver. She is married and has one grown daughter — and a beloved English pointer at her side while she writes. When not writing, you may find her enjoying embroidery and crochet projects, watching football, or kayaking and birdwatching on a high-mountain lake.
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