Evergreen seeks 'opportunity' for empty big-box buildings

Big-box stores have been closing their doors across the country, kneecapped by disastrous financial strategies and outperformed by online retailers like Amazon.

So it's no surprise that Evergreen, the unincorporated community on the northeast edge of Kalispell, lost two big-box stores in 2019 – Shopko in the spring, followed by Kmart in December.

The question now is: What will replace them?

Gary Mahugh, president of the Evergreen Chamber of Commerce, has heard rumors and rumblings about potential buyers and tenants over the past year, but so far no deals have materialized. He would like to see the buildings repurposed, perhaps divided into smaller, leasable spaces.

"Something that fits in with the Evergreen community and the Evergreen vibe," Mahugh said. "They're excellent buildings in excellent locations. It's just a matter of time until the right business ends up in both of those."

Across the country, former big-box stores have been converted into churches, gyms, office buildings, community centers, trampoline parks, indoor go-kart tracks and a variety of other businesses. The former OfficeMax in Evergreen, for example, was transformed last year into a Cash&Carry grocery store.

Elsewhere, such buildings have been demolished and replaced. A former Kmart in Everett, Washington, sold this year for a reported $18 million; developers plan to build 400 affordable-housing units on the 10-acre property.

But the costs of knocking down or renovating such buildings don't always pencil out for developers.

The vacant Shopko and Kmart properties in Evergreen, with their spacious parking lots and easy access from U.S. 2, might seem like an easy sell.

The Shopko building, built in 1994, measures about 98,000 square feet, and the Kmart building, built in 1974, measures about 88,000 square feet, according to county property records. Each sits on more than 8 acres of land. For tax purposes this year, the county valued the properties at $4.3 million and $3 million, respectively.

Big, empty buildings aren't desirable in a community, as they can signal a lack of economic activity and drag down neighboring property values. But Evergreen's population has grown in recent years, and Mahugh said the Shopko and Kmart buildings have presented few issues, except for some litter and unkempt greenery in the parking lots.

Mahugh said community members he's heard from "don't look at it as blight or just unfilled buildings. They look at it as opportunity. We hear a lot of, 'Gee, it would be nice if such-and-such ended up there.' "

He added that "whatever does ultimately end up there will definitely be a real plus for the Evergreen area in general."

Reporter Chad Sokol can be reached at 758-4434 or csokol@dailyinterlake.com