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Council approves EDC grants and chapter 380 incentives for Northway Retail Center and Project Capstone
Summary
Council approved an EDC infrastructure grant and multiple chapter 380 incentive agreements tied to an HB grocery/fuel/car wash project at Northway Retail Center and approved reimbursements and tax‑rebate packages for Project Capstone (Cadence Development), including an encumbered $2 million EDC infrastructure reimbursement and multi‑year sales- and property-tax rebate terms.
The Orange City Council approved several economic-development incentive measures on final readings and first readings that staff characterized as necessary to land large retail projects. For the Northway Retail Center project tied to HB corporate, the council approved an EDC infrastructure grant and related performance incentives intended to support demolition and redevelopment of a dated retail center. Staff emphasized the EDC funding is restricted and will not affect the general government fund.
“For a project of this magnitude we are going to enhance the property tax base,” an economic-development staff member identified in the record as Mr. Trey told council, saying the grant and subsequent performance agreement aim to create jobs and boost sales tax. Council approved a chapter 380 sales‑tax rebate equal to 33% of the EDC portion (0.5% of city sales tax) for a 10‑year performance period and a property-tax rebate equal to 50% of incremental ad valorem taxes on improvements for 10 years.
Council also approved incentives for Project Capstone, a mixed retail proposal by Cadence Development Partners on I‑10 West, describing a reimbursable infrastructure commitment that staff said is currently encumbered at $2,000,000 and anticipated tenant anchors (disclosed earlier at the EDC meeting) such as Burlington/Ross and Five Below. Mr. Trey told council the total capital investment could be in the tens of millions and that EDC incentives and chapter 380 rebate structures are intended to make the projects financially viable for developers while protecting existing tax bases.
Why it matters: The actions create multi‑year commitments to rebate portions of future sales and property taxes and to reimburse infrastructure work, which staff said are designed to generate new investment, jobs and sales tax base growth. Because the EDC funds are restricted, staff said there is no direct impact to the general governmental operating fund; however, the incentives represent future revenue foregone in the form of rebates tied to new development.
What happens next: Agreements are subject to developer performance and, in some cases, corporate acceptance; staff said final agreements and any future amendments will be returned to the EDC board and council for approval.
