Durant council approves incentive package to attract Ollie’s Bargain Outlet to former Clifton’s building

Durant — The Durant City Council unanimously approved an economic-development agreement to incentivize renovations at the former Clifton’s Furniture building and secure Ollie’s Bargain Outlet as an anchor tenant.

Cathy Moore, the city’s economic developer appearing by Zoom, told the council the 34,000-square-foot former Clifton’s space has been marketed for about 20 months and that multiple national retailers explored deals but withdrew because the building’s configuration and required improvements made projects unworkable. “So what we have today is Ollie’s Bargain Outlet is actively engaged and willing to anchor the site,” Moore said, describing a proposed tenant-improvement budget of roughly $1,400,000.

Moore said Ollie’s would contribute about $1,000,000 and the landlord/tenant would contribute roughly $430,000 toward improvements; the city would provide a performance-based rebate from the city’s unobligated 2% discretionary sales tax. The rebate is capped at $215,000 and the agreement’s term would be no greater than seven years. The agreement requires construction to start on Jan. 1 and be finished by June 30, 2026, and includes several clawback provisions tied to performance and store opening.

Brandy Rundle, representing the property owner, said the proposed Ollie’s lease is for 10 years with two five-year options, creating a possible 20-year commitment if options are exercised. Rundle emphasized landlord contributions for tenant improvements and mechanical work and explained that some national tenants include "kick-out" clauses that let them reduce rent or terminate if anchor stores remain vacant for long periods.

Council members questioned the projected sales and payoff timeline. Staff and presenters described projected annual sales of about $4.3 million for the site; at a 2% sales tax rate that projects roughly $86,000 in sales tax annually, of which the city said no more than half would be used to repay the incentive (about $43,000 per year). At that rate a $215,000 cap would be repaid in approximately five years if sales meet projections.

The council moved and seconded approval of the economic-development agreement (Contract 2025-76); the clerk called the roll and recorded unanimous "yes" votes from Council members Miller and Shear, Vice Mayor Similescu and Mayor Tucker.

The agreement is performance-based and includes clawback provisions if the conditions for construction, spending and opening are not met. Council discussion noted the council’s aim to stabilize the retail node, retain existing anchors such as Boot Barn and Harbor Freight, and address safety and blight behind the center.

Next steps are administrative: the approved contract will be executed per the terms on file and staff will monitor compliance with construction and performance milestones.