IDAHO SPRINGS, Colo. — An Idaho Springs shop says the Interstate 70 Floyd Hill construction project that began in early October is deterring tourists from stopping by the mountain town, impacting the city's sales tax revenue.
While the holiday season is usually one of the better times for business, inside The Spice And Tea Exchange of Idaho Springs, owner Sadie Schultz said shops are struggling.
"Now, for the first time, we're seeing a reduction in our sales tax dollars," said Schultz.
Schultz said for October, sales tax revenue was down about 2%. She projects November to be even worse.
The business owner said potential visitors don't want to stop in Idaho Springs anymore after sitting in traffic due to the rock scaling and blasting from the I-70 Floyd Hill Project.
"People are not stopping. They're just continuing to go. So it's definitely decreasing the amount of traffic we're seeing Monday through Thursday," said Schultz.
Schultz, who also is the director of Business and Community Promotions for Idaho Springs, said many shops are reporting a decline in weekday business by 20%.
"When an economy is completely based off of sales tax, we all start to get a little bit worried because that impacts a lot," she said.
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Idaho Springs' tax revenues saw an all-time high in July 2022. But there is hope on the horizon to bring tourists back.
"It's long-term pain for long-term gain... is really kind of the game in Idaho Springs right now," said Schultz.
Eventually, a transportation hub will be built near I-70 to improve mass transit for visitors. There are also plans for a 250-spot parking structure behind TommyKnocker Brewery.
The City of Idaho Springs received $2.4 million in funds from a Rebuilding American Infrastructure with Sustainability and Equity Planning grant. Also, according to Schultz, a promotional campaign is set to start on Jan. 1, 2025, in hopes of drawing visitors to Idaho Springs shops and attractions.
In the meantime, shop owners are asking visitors to make the stop and support small businesses in this "Gateway to the Rockies".
"We're talking about the mobility hub, additional parking and a beautiful redesign of our downtown district that's really going to set us apart from the small mountain towns," said Schultz.
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