Silt will lend $170,000 to help Dollar General store
Post Independent Staff
Glenwood Springs, CO Colorado
SILT, Colorado – The town government has agreed to lend $170,000 to pay for infrastructure related to a planned Dollar General store on Main Street, as part of its urban renewal strategy.
There still is no certainty that the store will be built, or when construction will start, said Mayor Dave Moore.
“I would say that their intent and motive, and all the paperwork, would merit a commitment,” Moore said of the Dollar General company. “There has been a commitment made, yes.”
Town administrator Pamela Moore wrote in an email to the Post Independent that she expects the sale to close in March, and construction on the store to begin in the spring.
Earlier in February, the Silt Board of Trustees opened up an alley to make way for the store, which is targeted for the 300 block of Main Street.
On Tuesday, the trustees voted unanimously to transfer $170,000 from the town’s Water and Wastewater Activity Enterprise fund to a newly created Economic Development Revolving Fund. The revolving fund, according to the authorizing resolution passed by the trustees, is then to loan the $170,000 to the Silt Urban Renewal Authority.
The money is to be used to install utility lines, stormwater drains, curb and gutter, and other infrastructure.
In addition to the fund transfer, the trustees agreed to kick in $10,000 in town funds to the Dollar General Urban Renewal Project, mainly to pay for legal and engineering fees and for staff time spent on the project.
The $170,000 loan to the authority, for a period of up to 15 years, is to earn 3 percent interest. It is to be repaid from sales and property tax revenues generated by the store.
According to town documents, the new store has projected annual sales of $1 million, which is expected to generate $30,000 in annual sales tax receipts. The town also expects to receive more than $14,000 in annual property tax revenues, based on the expected $900,000 value of the Dollar General building.
In addition, the town expects the store will generate roughly $20,000 per year in tax increment financing, or TIF, payments, based on the increased taxable value of the property as a result of the efforts of the urban renewal authority.
Moore said the trustees’ action on the fund transfer traces back more than a year, when the board first began discussing ways to improve Silt’s underdeveloped downtown area.
In January, the Garfield Board of County Commissioners agreed to kick in $1 million to help with Silt’s revitalization, with the money strictly limited to spending on site development and infrastructure, but not for a building.
“Anything that we do has to align with the funds that we’ll receive,” Moore said of the $1 million grant. The grant has not been disbursed yet, he said.
Attorneys working for the county and the town are working on an intergovernmental agreement that lays out the ground rules for using the county funds.
Support Local Journalism
Support Local Journalism
Readers around Glenwood Springs and Garfield County make the Post Independent’s work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Each donation will be used exclusively for the development and creation of increased news coverage.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User
Glenwood Springs Police Chief Joseph Deras lamented his department’s inability to maintain a constant presence downtown during a virtual public forum Monday night.