Theisen’s department store in Newton to move into new building by 2022

In addition to moving into a new space along First Avenue in Newton, Theisen’s Home-Farm-Auto department store will be expanding its merchandise selection to customers and has been approved for a $50,000 economic development grant and a five-year tax increment finance (TIF) rebate with the city.

Chris Theisen, CEO and president of Theisen’s Home-Farm-Auto, said the store will be transitioning from an approximately 20,000-square-foot space to a 54,000-square-foot building. Theisen said the current store — which opened in 2006 — will remain operational until staff are ready to move into the new building.

During the Dec. 6 council meeting, the city was allowed to amend its urban renewal plan for the East-Mart Urban Renewal Area, which permitted the grant and property tax rebates to Theisen Real Estate, LLC for its redevelopment project. The new department store will be located at 3021 First Ave. E.

Currently operating at 3362 U.S. Highway 6 E. in Newton, the store technically resides outside city limits. The move will directly place the retailer in the southern building currently occupied by Underwriters Laboratories (UL), which is within city limits. Theisen is enthusiastic about the move.

“We’re looking forward to offering (customers) additional products and services to fit their needs and their lifestyles,” he said.

TRADING SPACES

When the previous owners of the building chose to not renew their lease, Theisen said they contacted his Dubuque-based company, who had shown interest in the property about 10 years ago. With its larger space and visibility to First Avenue commuters, the building served as an ideal location for a retailer.

The company officially closed on the building Nov. 1. Theisen told Newton News in a phone interview Dec. 14 that the property is under renovation and has undergone a lot of interior demolitions to clear out the office space. The company is also removing floors and plans to add new roof and HVAC system.

“We’ll try to get that stuff done over the winter months,” Theisen said. “When the weather gets warmer again we’ll be able to attack the exterior, which is really in pretty good shape. There’s really no addition or significant facade changes other than cleaning it up and making it look like a Theisen’s store.”

Supply chain shortages may affect the timeline of the project. Theisen said a shortage on fixtures — which are needed to display merchandise — may delay those installations until the third quarter of 2022. The company’s goal is to open by the end of the third quarter, but Theisen noted there’s nothing set in stone.

SHOP ‘TIL YOU DROP

The current location is limited on products it offers. Theisen said most departments in the new store will expand not only the physical space but the product offerings; in particular, the clothing and footwear. With the added space, Theisen expects customers will have access to the store’s full line.

“We will expand sporting goods considerably,” he said. “We’re just very, very limited at what we can do there in the store (now). The seasonal departments inside the store or in the lawn and garden season, we’re going to do a lot more with a greenhouse and the parking lot out there.”

The expansion will also improve the store’s ability to display products properly. Currently, there are certain inventory items that are only available through special order, which Theisen said is directly caused by space restrictions.

“We will not have that anymore with the expanded store,” he said.

LET’S MAKE A DEAL

Under the development agreement, Theisen Real Estate agreed to a minimum assessment of $1.5 million in exchange for the $50,000 grant and TIF rebates that would rebate 100 percent of the increment that could be legally rebated in the first three years, then 65 percent in year four and 60 percent in year five.

The tax rebates in the agreement are not to exceed $210,000, city documents stated. Currently, the Theisen’s department store is assessed at $771,160; when the project is completed, its assessed value will have almost doubled. The grant, which required a one-to-one match, is for curb appeal improvements.

Newton Mayor Mike Hansen told council members on Dec. 6 he was excited about the move. The community, too, is talking about it and what the expansion will offer customers, he said. Council member Evelyn George agreed and said it is exciting for all of Jasper County’s citizens.

“It will be exciting to have more offerings within our county,” she said.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com