Warr Acres EDA reviews TIF and incentive options for Golden Corral site, asks prospective tenant to apply

Warr Acres’ Economic Development Authority heard a briefing Nov. 25 on tools the city can use to recruit businesses and redevelop underused properties, and directed a prospective tenant to submit a full application for vetting.

Jeff Sabin of the Center for Economic Development Law told trustees the city’s project plan contemplates four TIF districts (two activated) and carries an $8 million project budget, including $2 million for public improvements and up to $5 million for assistance and development financing. "TIF works is when you enact the TIF district...as you make projects happen within that area and the valuation increases, the taxes...applied to that increased value is captured separately and deposited into an apportionment fund that you all can use to pay the project costs," Sabin said.

City staff reported recent fund activity and investment income. Unidentified Speaker (S6) read figures for 2023: "we for 2023, we brought in 47,185, spent 75,512 for a net reduction of 28,327 which brought the fund balance down to $1,746.50." Sabin emphasized that spending principal reduces future investment income and urged trustees to adopt clear policy criteria and vetting procedures before granting incentives.

Sabin summarized three categories in the existing incentive policy: development project assistance (the policy uses a roughly $250,000 minimum project threshold as a guide), retail recruitment incentives (designed for larger-scale retail projects with projected annual sales of about $1,000,000 or more), and small-business enhancement grants (back-end reimbursements of up to $1,500, typically covering 50% of eligible costs).

On the Golden Corral property and an adjacent 9-acre lot, trustees discussed two paths: (1) use sales-tax reimbursement or other city-controlled incentives, which would require council appropriation, or (2) amend and activate a TIF district for the site. Sabin outlined the amendment steps, including a review committee of taxing jurisdictions, planning commission review and two public hearings, and estimated the process could take two to three months and cost roughly $10,000–$15,000 in professional fees.

Trustees raised competitive concerns. One trustee said the Northwest Expressway corridor already has multiple pizza and chicken restaurants and worried subsidizing a similar business could "cannibalize" existing local merchants; another said modest, targeted assistance could be appropriate when a project helps clean up blight. Sabin and others noted that incentive agreements can include performance benchmarks, milestone-based payouts and clawback or reporting requirements to protect the city.

Trustees instructed staff to ask the prospective tenant (referenced in discussion) to submit a full application with financials and market studies so staff and the consultant can vet the proposal and recommend whether and what form of assistance is appropriate. The EDA also discussed whether consultant, engineering or planning costs to process an application could be paid from EDA funds.

A motion to adjourn was made by Unidentified Speaker (S5), seconded, and approved by voice vote.