Home Depot considers new store in Tumwater

Company has option on land in growing commercial district

SCOTT WYLAND THE OLYMPIAN

TUMWATER -- Home improvement buffs might soon have another place to buy their lumber, tools and plants.

Home Depot has presented preliminary plans to the city of Tumwater for a 112,000-square-foot store and garden center near Bloomingdale Lane, between Interstate 5 and Littlerock Road.

If built, the store would add to the growing retail nucleus in that portion of the city.

"We think Home Depot is a good fit with what's already there, with Fred Meyer and Costco," said Chris Carlson, Tumwater city planner. "A synergy."

The Atlanta-based retail giant has an option to buy 10.7 acres near I-5 from Kingswood Capital Inc., which is based in Vancouver, British Columbia.

The Tumwater store would be Home Depot's second in Thurston County. It has a store on Fones Road in Olympia.

Home Depot spokeswoman Kathryn Gallagher said it was too early to discuss the proposed Tumwater store.

The South Sound market has shown that it can support more than one Home Depot, as seen in its bustling Olympia store, Gallagher said Thursday.

"We are looking at options in the market to relieve sales pressure on this store," said Gallagher, from the company's Southern California office. "But at this point, we don't have anything narrowed down. We're just looking."

Other site rejected

Last year, Home Depot scrapped plans to buy a 15-acre, city-owned property in west Olympia that once was a garbage dump.

Company officials had expressed displeasure with the $2.15 million price tag. Home Depot officials said building a store on a former landfill cost more than expected.

By opting out of that lot, Home Depot lost $100,000 in earnest money.

"They forfeited the earnest money and walked away," Olympia city attorney Mark Erickson said.

Home Depot has 1,103 stores in North America. In fiscal year 2001, the company's net income rose 17 percent to $3.04 billion.

If Home Depot decides to build in Tumwater, the store would add substantially to the city's tax base, said Gayla Gjertsen, city finance director.

A store similar in size to the one in east Olympia would generate $200,000 in yearly revenue from business and sales taxes, Gjertsen said.

Home Depot also would pay a 6 percent utility tax and property taxes of $2.77 per $1,000 of assessed property value, she said.

The company would have to extend Tyee Drive 1,100 feet southwest to Littlerock Road to ease access to the store, Carlson said.

Home Depot also might build an east-west thoroughfare called Kingswood Road, which would run from I-5 to Littlerock Road, Carlson said.

The store would have about 500 parking stalls, he added.

A booming business

South Sound is reaping rewards from the booming home improvement industry, which is fueled in part by low 30-year mortgage rates.

Aside from its proposed store, Home Depot is preparing to build a 500,000-square-foot distribution center in Lacey that will import goods from Pacific Rim countries and employ up to 100 people.

Also, the company's rival, Lowe's Home Improvement, is in the midst of building a store and garden center on Martin Way.

If Home Depot builds a store in Tumwater, other retailers might follow, Carlson said.

There are still more than 100 acres of land between Trosper Road and Airdustrial Way zoned for commercial development, Carlson said.

"This may be a catalyst that attracts more development," Carlson said.

Scott Wyland is a business reporter for The Olympian. He can be reached at 360-357-0748 or swyland@olympia. gannett.com.

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