HomeMy WebLinkAbout1993-04-27 - AGENDA REPORTS - HOME DEPOT DEVELOPMENT (2)NEW BUSINESS
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SUBJECT:
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BACKGROUND
AGENDA REPORT
April 27, 1993
City Manager Approval
Item to be presented y'.
Lynn M. Harris
REIMBURSEMENT AGREEMENT FOR HOME DEPOT DEVELOPMENT
Community Development
On December 18, 1992, plans were approved for Home Depot Development, a 102,000 square foot
building fronting on Golden Triangle Road atthe intersection of Golden Triangle Road and the
future extension of Ruether Avenue In the Canyon Country community. As a result of this approval,
conditions were placed on the project specifying specific public improvements. These
improvements include full construction of Ruether Avenue and Golden Triangle Road fronting the
development, complete with medians and appropriate traffic signallzation at the intersection of
Ruether and Golden Triangle. The Home Depot public improvements are expected to cost
approximately $1.06 million.
The City was approached by Home Depot for participation in an economic development Incentive
program. Both Home Depot and City staff met over a period of several months to determine
feasibility In providing specific Incentives for the Home Depot. A draft agreement has been
prepared that proposes the City would reimburse the retailer a portion of the $1.06 million public
Improvements (to a maximum of $690,000), discounted at 7%. The agreement would be In effect
for a maximum of seven years, at the end of which all debt would be relieved. The City would
reimburse on a schedule up to a maximum of 50% of sales tax revenue generated per year: Further,
the proposed reimbursement agreement outlines the responsibilities of both the City and Home
Depot. This agreement Is attached for the City Council's review.
When completed, the Home Depot outlet, along with its neighbor Mountasia Entertainment Center,
would be a significant national development In the City's central area. Home Depot expects to
employ 125 persons as a result of new business.
RECOMMENDATION
Staff recommends that the City Council approve the Home Depot reimbursement. agreement,
authorizing the City to reimburse Home Depot a maximum of $690,000 over a seven year period.
Draft agreement on file in the City Clerk's reading file.
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