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Johnstown to consider incentives for new Kroger center

Ecommerce fresh food distribution center could create 160 jobs and open by June 30
Johnstown, Colorado.

The Johnstown Town Council will decide Monday whether to provide economic incentives to bring an ecommerce fresh food distribution center to the town.

Kroger, parent company to King Soopers, is building a 55,000 square foot spoke facility at the Trade @ 2534 Industrial Park in Johnstown, northeast of Longmont, that could create over 100 jobs and begin operating by June 30.

According to the town council’s packet, the facility, known as the Kroger Fulfillment Network, will be used as an ecommerce fresh food distribution center, the first in Colorado that will work with Kroger’s existing “Hub” fulfillment center near the Denver Metro.

Kroger’s estimated capital investment will be over $3.5 million with an operation start date by the end of the first quarter of this year, the packet said. The facility is expected to employ up to 160 employees over several years depending on market demand and growth.

If approved, Johnstown will offer a personal business property tax rebate of up to 50% for 10 years and a one-time 75% on building permit fees paid for the construction of this project. In return, Kroger commits to an operational start date no later than June 30, and a minimum creation and hire of 100 employees no later than June 30, 2024.

The Johnstown council is expected to vote on the agreement Monday evening. Town staff has recommended approving the economic incentive agreement.