Johnstown considers incentives for a Kroger fulfillment center

JOHNSTOWN — The Johnstown Town Council tonight will consider whether to extend incentives to the Kroger Co. (NYSE: KR) to establish an ecommerce fresh food distribution center.

The center, described as a 55,000-square-foot facility in the Trade@2534 development that United Properties Development LLC is building at 4151 Ronald Reagan Blvd., would be “the first in Colorado that will work in conjunction with its [Kroger’s] existing ‘hub’ fulfillment center near the Denver metro area,” documents in the town council’s meeting packet said.

Kroger has spun off the development into its Kroger Fulfillment Network LLC division. 

The capital investment for the project will be $3.5 million, and a start date for operations was forecast to be the end of the first quarter of this year.

The company predicted that it would hire 160 workers and promised as part of the proposed incentive deal to have hired at least 100 workers by June 30, 2024.

The town, if the council approves, will offer a 50% personal property tax rebate for a term of 10 years and a one-time 75% rebate of building permit fees paid during the construction period.

The topic is item 16 on tonight’s agenda.

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