MITCHELL – A national retail store could be moving into the former Shopko building on the north side of Mitchell.
The city’s Planning and Zoning Commission on Monday approved a Tax Increment Financing (TIF) District, which will facilitate future development inside the former Shopko building that Frank Krohmer, owner of Krohmer Plumbing, purchased in the spring to move his plumbing business into.
During Monday’s Planning and Zoning Commission meeting, Krohmer said the retail business that’s eyeing to open in Mitchell would occupy a portion of the building. Krohmer Plumbing will occupy about half of the 71,846-square-foot building, Krohmer said.
“We’re really working hard to get a national retailer on the north end of town and expand the market since Shopko left. That was our biggest goal to get this done,” Krohmer said. “We’re hoping we can fill it in with two of them (retailers).”
Krohmer did not disclose the name of the retail business that’s considering moving into the building.
Krohmer’s attorney, Don Petersen, said the eligible project costs that can be funded by the TIF are for the retail business eyeing to move into the building. The TIF could cover a total of $527,250 in project costs, which would primarily entail renovation work for the new retail store.
According to the TIF project plan, Krohmer plans to bring over $2 million in renovations to the building.
“There is enough room in the building to develop two potential retail spots. They are in negotiations now with a national retailer, and they have made some of the projections on what they have to have in their building to come,” Petersen said.
The increase in property taxes from the building improvements and new retail businesses within the TIF boundaries is referred to as the “tax increment,” which the city would pass on to the developer as it generates over a 20-year window.
When the renovations are complete, it would position Krohmer Plumbing to expand its local workforce by 32 new employees. Krohmer Plumbing’s showroom would also expand inside the large commercial building.
The local, family owned plumbing company has been in business since 1984 and continues to expand its footprint throughout the state.
Krohmer purchased the building, located at 1900 N. Main St., for $1.8 million. The building has sat vacant since Shopko closed in 2019 after the company filed for bankruptcy. A Native American tribe purchased the property in 2022 with plans to turn the building into a medical marijuana growing facility, but the tribe opted to sell the property to Krohmer.
Krohmer’s goal to bring large retail stores to the north side of Mitchell has been met with strong support among city leaders considering the north side of the city has been grappling with a loss of businesses and vacant buildings once occupied by retail stores.
In hopes of attracting the retail business in talks of going into the building, the Mitchell City Council approved a new tax incentive grant on Jan. 2. The tax incentive will allow any retail business that generates over $2 million in annual sales to capture 2% of the sales tax that would have typically gone to the city.
While the tax grant incentive is available for any new retail business that meets the city’s qualifications, Mayor Bob Everson said the retail company considering opening in the north side of Mitchell was a key factor that prompted the city to roll out the incentive.
Sam Fosness joined the Mitchell Republic in May 2018. He was raised in Mitchell, S.D., and graduated from Mitchell High School. He continued his education at the University of South Dakota in Vermillion, where he graduated in 2020 with a bachelor’s degree in journalism and a minor in English. During his time in college, Fosness worked as a news and sports reporter for The Volante newspaper.
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