KINGMAN — On January 29, Hobby Lobby secured one of the first permits necessary for its development of a new Kingman location on Stockton Hill Road. The project is the product of a development agreement between the retailer and the City of Kingman, which was officially approved by the City Council on December 2.
Hobby Lobby Stores, Inc. entered into a lease agreement with the property owner, Sunstone Arroyo, LLC, on September 4. According to the development agreement with the city, Hobby Lobby required a 50,000-square-foot space, but there is currently no property in Kingman that meets the physical requirements. However, the property in the Frontier Shopping Plaza, which presently includes a Dairy Queen and Tractor Supply Co., was chosen because it could meet the company’s needs if they could make certain modifications.
On January 29, Hobby Lobby acquired a Tenant Improvement Permit, granting it the ability to begin making the necessary modifications to the former 99 Cent Store property.
The Site-Specific Economic Development Agreement negotiated between the City of Kingman and Hobby Lobby is several years in the making.
Talks with Hobby Lobby were facilitated by the city’s business headhunter, The Retail Coach, whose analysis found that the City of Kingman was missing out on as much as $1 million per year in “leakage.” Leakage is lost sales tax revenue that now goes to neighboring cities with Hobby Lobby locations, such as Bullhead City.
“We know based off our analysis that this deal—the return to Kingman is much higher than the actual incentive amount,” said Kaleb Wilson, who represented The Retail Coach at the December meeting.
According to the terms of the agreement, Hobby Lobby would receive a rebate of up to $250,000 over the course of ten years. The company will be eligible for the rebate in two years. Up to 30% of the 2.5% General Fund Sales Tax would be included, but this does not include construction sales taxes or sales taxes on leases.
The agreement also places certain obligations on Hobby Lobby to receive the rebate. The retailer must employ a yearly average of at least 12 full time employees who each earn $40,000 per year on average. The company also must have at least 11 part time jobs and must comply with these job requirements within six months of receiving certificate of occupancy.
“We are very excited,” says Vice Mayor Cherish Sammelli, who has been involved in this process. “We hope this is just the beginning of more retailers choosing Kingman as a location. We want everyone to know that we are open for business.”
Kingman leadership chose Hobby Lobby because it was the third-most-requested retailer by Kingman residents, according to the city’s 2025 Kingman Retail and Restaurant Survey. The two most requested retailers in the survey were Sam’s Club and Costco.
City representatives attended the International Council of Shopping Centers (ICSC) event in Las Vegas last year, which brings together retail developers, brokers, and retail industry experts.
Other retailers requested by Kingman residents in the city’s survey included grocers (Trader Joe’s, ALDI, and Sprouts), casual dining (Olive Garden and Texas Roadhouse), and quick-serve restaurants (Chick-fil-A and Panera Bread).
The date for Hobby Lobby’s grand opening is not yet known but could be as early as the fourth quarter of this year.
