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Commission approves PPA for Shoe Dept Encore expansion at North Plains Mall with capped reimbursement
Summary
The commission unanimously approved a project participation agreement to support Shoe Dept Encore’s expansion at North Plains Mall; Clovis Economic Development said eligible project costs total $1,370,904.56 with a maximum 50% reimbursement cap (up to $685,452.28) paid only on gross receipts above $1,000,000 over up to 10 years.
The Clovis City Commission unanimously approved a project participation agreement (PPA) between the City of Clovis and North Plains Mall Management LLC to support Shoe Dept Encore’s expansion in the former Dillard space at North Plains Mall.
Miss Jook of Clovis Economic Development described the expansion as a relocation into the remaining Dillard footprint that will double the store’s size and, the applicant expects, double revenue. “Their land and building and site improvements come out to $1,370,904.56,” Jook said. Under the local incentive (LITA) terms presented, reimbursements are limited to gross‑receipts tax paid above $1,000,000; at a 50% maximum reimbursement rate, the stated maximum eligible reimbursement would be $685,452.28 and reimbursement eligibility extends for up to 10 years, after which any remaining reimbursement right would terminate.
Commissioner Paula asked whether the land cost was the applicant’s basis or fair market value; Jook said the applicant prorated their purchase cost for the pro forma and that applicants must submit receipts and GRT reports to receive reimbursement.
Commissioner Jones moved to approve the PPA and Commissioner Paula seconded; the council voted unanimously to approve the agreement. City staff said they will process proof of costs and GRT documentation before reimbursements are forwarded to the applicant under the agreement.
