A rendering of Number 38’s planned Littleton location. (Courtesy Number 38)
Littleton has put a number on how much it wants Number 38: $400,000.
That’s how much the restaurant and music venue, which already operates in RiNo, could get under a tax incentive agreement the Littleton City Council approved on Tuesday night.
Andrew Palmquist, co-owner of Number 38 and chief operating officer of parent company Numbers Holding Co., said the company applied for the incentive after it purchased the 0.92-acre site at 7390 S. Broadway in April 2023 for $1.35 million.
“Without the incentive we likely would not be able to finish our capitalization of the project,” Palmquist said. “It didn’t necessarily impact our decision to acquire, but we certainly knew Littleton was open for this incentive.”
Under the terms of the “shareback” deal, after the business hits $30,000 in annual sales tax revenue, it will be allowed to keep 50 percent of its sales tax. The deal is good for five years, or up to $400,000.
“This wasn’t the only thing we talked about, but the one that made the most sense as a win-win for the city and for us,” Palmquist said.
Littleton has a policy that allows the city to offer incentives like this on a case-by-case basis. In 2013, the city entered a six-year shareback deal with King Soopers related to the redevelopment of the company’s store at Littleton Boulevard and South Broadway. The following year, Littleton gave Breckenridge Brewery a $300,000 sales tax shareback and waived some building and review fees for its 12-acre production facility and restaurant.
According to an economic analysis presented to council members, Littleton expects Number 38 to generate between $191,746 and $207,552 in tax revenue.
Number 38 plans to build a 8,440-square-foot venue and bar on the Littleton Village lot it purchased, which is between Starbucks and Culvers. Unlike its original RiNo location, which opened in 2020, Palmquist said the venue will not hold live music events outside.
Palmquist said the group hasn’t started construction yet, and still needs a few permits approved. He anticipates the venue opening in 2025.
Cindie Perry, Littleton’s director of economic development, said during a council study session last week that it has been difficult to attract developers to that area of the city, but the venue will likely help.
“If we can catalyze quality investment in Littleton … it’s going to pique other investors and developers of these types of uses that we want to attract here,” Perry said during the session.
The councilors agreed, and noted the funds given back will come from whatever Number 38 generates in tax revenue — not the city’s general fund.
“There’s no risk to the city on this,” Councilman Robert Reichardt said. “We’re not fronting any money, we’re not taking a loan. What we’re doing is sharing the revenue they’re raising for us, in a place where there’s no revenue being raised for us right now.”
Mayor Kyle Schlachter agreed that “some sales tax is better than none, which is our current situation.”
“It’s also about adding an amenity we just do not have here,” Mayor Pro Tem Stephen Barr said. “Beyond the monetary benefit, it’s also adding a facet to the things we offer as a city that we don’t have.”
A rendering of Number 38’s planned Littleton location. (Courtesy Number 38)
Littleton has put a number on how much it wants Number 38: $400,000.
That’s how much the restaurant and music venue, which already operates in RiNo, could get under a tax incentive agreement the Littleton City Council approved on Tuesday night.
Andrew Palmquist, co-owner of Number 38 and chief operating officer of parent company Numbers Holding Co., said the company applied for the incentive after it purchased the 0.92-acre site at 7390 S. Broadway in April 2023 for $1.35 million.
“Without the incentive we likely would not be able to finish our capitalization of the project,” Palmquist said. “It didn’t necessarily impact our decision to acquire, but we certainly knew Littleton was open for this incentive.”
Under the terms of the “shareback” deal, after the business hits $30,000 in annual sales tax revenue, it will be allowed to keep 50 percent of its sales tax. The deal is good for five years, or up to $400,000.
“This wasn’t the only thing we talked about, but the one that made the most sense as a win-win for the city and for us,” Palmquist said.
Littleton has a policy that allows the city to offer incentives like this on a case-by-case basis. In 2013, the city entered a six-year shareback deal with King Soopers related to the redevelopment of the company’s store at Littleton Boulevard and South Broadway. The following year, Littleton gave Breckenridge Brewery a $300,000 sales tax shareback and waived some building and review fees for its 12-acre production facility and restaurant.
According to an economic analysis presented to council members, Littleton expects Number 38 to generate between $191,746 and $207,552 in tax revenue.
Number 38 plans to build a 8,440-square-foot venue and bar on the Littleton Village lot it purchased, which is between Starbucks and Culvers. Unlike its original RiNo location, which opened in 2020, Palmquist said the venue will not hold live music events outside.
Palmquist said the group hasn’t started construction yet, and still needs a few permits approved. He anticipates the venue opening in 2025.
Cindie Perry, Littleton’s director of economic development, said during a council study session last week that it has been difficult to attract developers to that area of the city, but the venue will likely help.
“If we can catalyze quality investment in Littleton … it’s going to pique other investors and developers of these types of uses that we want to attract here,” Perry said during the session.
The councilors agreed, and noted the funds given back will come from whatever Number 38 generates in tax revenue — not the city’s general fund.
“There’s no risk to the city on this,” Councilman Robert Reichardt said. “We’re not fronting any money, we’re not taking a loan. What we’re doing is sharing the revenue they’re raising for us, in a place where there’s no revenue being raised for us right now.”
Mayor Kyle Schlachter agreed that “some sales tax is better than none, which is our current situation.”
“It’s also about adding an amenity we just do not have here,” Mayor Pro Tem Stephen Barr said. “Beyond the monetary benefit, it’s also adding a facet to the things we offer as a city that we don’t have.”
