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Del City approves sales-tax rebate to bring Boot Barn, caps incentive at $400,000
Summary
The Del City Council approved a six-year sales-tax rebate agreement with LS2 Land Company LLC to incentivize a Boot Barn store; the rebate is 1.35% of Boot Barn–generated sales tax and the aggregate rebate is capped at $400,000. Seward Investment representatives spoke in support.
The Del City Council voted to enter into a sales-tax rebate agreement with LS2 Land Company LLC to attract Boot Barn to a Del City shopping center.
City staff described the incentive as a six-year agreement providing 1.35% of sales tax generated specifically by Boot Barn, with an aggregate cap on rebates of $400,000. City staff said the rebate applies only to the new sales tax generated by the incoming tenant and does not reallocate existing city revenue. The proposal was presented as a routine economic development tool to help defray build-out costs and encourage private investment.
Council members discussed the mechanics and fiscal impact. One councilmember noted the city would still retain the majority of the new sales tax and that issuing a partial rebate on newly generated revenue is common practice for recruiting retailers. After discussion, the council moved, seconded and approved the agreement; the motion passed with recorded ayes from Councilman Dean, Councilman Finch, Councilman Brown, Councilman Tatum and the mayor.
Leland Clark of Seward Investment, speaking on behalf of LS2 Land Company LLC, identified himself to the city clerk and thanked the council for supporting Boot Barn as a tenant. Clark said the company expects Boot Barn to be a strong retail fit for the community.
The agreement authorizes the mayor to endorse the rebate documents. The council did not specify an implementation schedule in the meeting record; details on timing and the effective start date of rebates were not given in the discussion and were listed as "not specified."
