Long-vacant Glenwood Springs Safeway to be redeveloped despite denied tax incentive
Jaymin Kanzer/Post Independent
The long-vacant Safeway building in Glenwood Springs is set to become home to an ARC Thrift Store and a Harbor Freight. The property at 2001 Grand Ave. has been empty since 2019, when Safeway closed after more than 50 years at the location.
Despite securing tenants and moving forward with renovations, the project hit a roadblock Thursday when Glenwood Springs City Council denied a $2 million tax incentive request.
The renovation will divide the former Safeway into two separate retail spaces. ARC Thrift Store, a Colorado-based nonprofit with more than 65 locations statewide, provides support for individuals with intellectual and developmental disabilities. Harbor Freight, a nationwide tool and equipment retailer, operates more than 1,500 locations across the U.S. Both businesses have signed 15-year leases and will bring about 60 full-time and part-time jobs to Glenwood Springs.
Before council debated the proposal, Glenwood Springs Community Development Director Hannah Klausman introduced an economic analysis on the potential impact of the new businesses. The data compiled showed that thrift stores often take business away from existing ones, with about 68% of new sales shifting from other stores in the first year. At the same time, demand for thrift stores in Glenwood Springs remains high.
“We did see about a 68% cannibalization from existing stores within that opening year,” Klausman said. “It’s shiny. It’s new. People go there. But that did really level off after that first year.”
She noted that hardware stores were expected to have less of an impact, as many residents currently leave the area to buy certain products.
Millco Investments, the property developer, requested a 50% sales tax rebate over 15 years to help cover building upgrades and stormwater improvements required by the city.
Robert Miller, president of Millco Investments, told council members the property had been in disrepair for years and required significant investment.
“I need help, and I’m pretty transparent,” Miller said. “The seller gave me no breaks, despite this property being on the market for five or six years, however long it was. My luck was, I came around when there was competition on it. And if it weren’t me, I suspect the hospital would have likely bought the property… which would have likely resulted in zero sales tax revenue, perhaps some freeze or forgiveness on real estate taxes as well.”
Miller explained that the purchase price alone was $6.5 million, and renovations — including roof repairs, parking lot improvements, and structural updates — would add to the cost.
“The percentage of the sales tax revenue that we’re asking for is half, and I understand that that’s somewhat customary on similar incentives that have been agreed to and approved through the municipality,” Miller said. “Again, this is coming based upon the sole success of the property. We’re not asking for any additional money or revenue that otherwise, you know, was not created from the actual development and project that we are creating ourselves.”
Council members debated whether the request fit within the city’s economic incentive policies. Some expressed concerns about the impact on local businesses, while others questioned whether a tax rebate was appropriate for a development that was already moving forward.
Sumner Shacter said the incentive was too large and lacked a formal policy framework.
“This is a big ask,” Shacter said. “And yeah, if you look at the numbers, there’s potentially a payback. But it looks like, based on the projections and the unknown cannibalization, the payback period — albeit we have zero sales tax now — the payback period is pretty long for the size of the ask.”
Councilor Mitchell Weimer questioned whether the city should offer financial support to a project that would compete with existing businesses.
“You know, at the end of the day, we’re talking about a hardware store and a thrift store, and the town is chock-a-block with both already,” Weimer said. “Businesses have worked really hard to get to where they are, and hardware stores and thrift stores that are within almost a stone’s throw of the Safeway building. I think we owe it to our existing partners and our local business owners to prioritize them versus newcomers.”
Councilor Marco Dehm proposed a smaller rebate focused only on stormwater improvements, but the council ultimately voted unanimously to deny the request. Mayor Ingrid Wussow and council members Jonathan Godes and Matthew Simms were not in attendance.
Even without the tax incentive, redevelopment of the former Safeway will continue as planned.
Williams Construction, the project’s contractor, confirmed that permits have been secured and work will begin immediately.
“We start construction on Monday,” Williams Construction co-owner Mike Lamb said. “The city’s building department has been great to work with, and we’re excited to transform this site into something beneficial for the community.”
Lamb said the project includes significant structural work beyond simple remodeling. Upgrades will include roof repairs, a full interior rebuild, façade improvements, and a 2-millimeter asphalt overlay for the parking lot. A new stormwater treatment system will also be installed to prevent runoff from reaching the Roaring Fork River.
“We’re putting in an elaborate stormwater treatment plan,” Lamb said. “As a fisherman who loves the Roaring Fork River, I want to make sure it’s taken care of.”
Although the tax incentive was rejected, city officials said Millco Investments could reapply for a smaller Tier 1 sales tax rebate, which is capped at 20% and applies only to system improvement fees.
Miller, while disappointed, said the project remains on track.
“We’re here for the long haul,” Miller said. “This property has been sitting empty for too long, and we’re excited to bring new energy and jobs to Glenwood Springs.”
