Kmart was one of our largest sales tax producers so this loss is significant. The loss of any business hurts the City’s finances, particularly businesses such as Kmart and Scotts Valley Sprinklers.
The City Council considered this matter in December 2019 and appointed the Vice Mayor to spearhead the retail replacement and economic development strategy. The City is working to identify a desirable replacement that will add to Scotts Valley’s retail amenities. This is significant in that the City did not have to act as the transaction is one between private parties. The City, however, did not want to be on the sidelines and so elected to get involved to help shape an outcome positive for the community.