Idaho Springs business says I-70 Floyd Hill project is diverting tourists

IDAHO SPRINGS, Colo. — An Idaho Springs business says the Interstate 70 Floyd Hill construction project that began in early October is discouraging tourists from stopping by the mountain town, impacting the city’s sales tax revenue.

While the holiday season is typically one of the better times for business, owner Sadie Schultz of The Spice And Tea Exchange in Idaho Springs said stores are struggling.

“Now, for the first time, we’re seeing a reduction in our sales tax dollars,” Schultz said.

Schultz said sales tax revenue fell about 2% in October. She expects November to be even worse.

The business owner said potential visitors no longer wanted to stop in Idaho Springs after being stuck in traffic due to the rock-cutting and blasting of the I-70 Floyd Hill project.

“People don’t stop. They just move on. So that definitely reduces the traffic that we see Monday through Thursday,” Schultz said.

Schultz, who is also director of business and community promotions for Idaho Springs, said many stores are reporting a 20% drop in weekday business.

“When an economy is based entirely on sales tax, we all get a little worried because that has a big impact,” she said.

Idaho Springs tax revenue reached an all-time high in July 2022. However, there is hope of bringing tourists back.

“It’s about long-term pain for long-term gain … that’s really the game in Idaho Springs right now,” Schultz said.

Finally, a transportation hub will be built near I-70 to improve local transportation for visitors. There are also plans for a 250-space parking garage behind TommyKnocker Brewery.

The City of Idaho Springs received $2.4 million from a Rebuilding America’s Infrastructure with Sustainability and Equity Planning grant. Additionally, Schultz said an advertising campaign will launch on Jan. 1, 2025, in hopes of attracting visitors to Idaho Springs’ shops and attractions.

In the meantime, store owners are asking visitors to stop by and support small businesses in this “Gateway to the Rocky Mountains.”

“We’re talking about the mobility hub, additional parking and a beautiful redevelopment of our downtown district that will really set us apart from the small mountain towns,” Schultz said.