Andalusia is slated to have a new, 62,000 square- foot sporting goods store, thanks in part to an agreement approved by the Andalusia City Council Tuesday.

Dunham’s will locate in the Sanford Station Shopping Center located behind Southern Independent Bank on the east side of Andalusia in space formerly occupied by Dirt Cheap.

The company will make a $5 million investment to open the local store, which is expected to employ 35 to 40 employees. Dunham’s, which first opened in West Bloomfield Township, Michigan, in 1937 as Dunham's Bait & Tackle, currently has more than 259 locations in 25 states.

The council entered an agreement with Watson and Downs Investment II, LLC, in which it agreed to rebate 2 percent of the city sales taxes collected there with a cap of $1.5 million.

“This will plug a leak in the local economy,” city administrator John Thompson said, adding that the store will offer many items not currently available here.

The closest Dunham’s location is Ozark, he said.

Mayor Earl Johnson said he visited that store, which is smaller than the one planned here. Johnson said he was impressed with the store.

“It’s like a sporting goods store on steroids,” he said. “They have clothing, shoes, boots, hiking boots, you name it, they have it.”

Johnson said the store fills a retail niche that will help draw shoppers to the local community.

In other business, the council:

• Agreed to surplus five vehicles

• Agreed to make a contribution to the Alabama High School Rodeo Association, which will hold state finals in the Covington Arena June 5-7.