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Board approves Chapter 380 sales‑tax rebate for Providence Restaurants LLC, excludes $200,000 upfront payment
Summary
The board approved a Chapter 380 economic development agreement with Providence Restaurants LLC limited to a sales‑tax rebate (approximately $300,000 at 50% over six years) and declined the requested $200,000 upfront payment, citing encumbrance and accountability concerns.
The Weatherford Economic Development Board approved a revised Chapter 380 economic development agreement for Providence Restaurants LLC on Jan. 17 that limits the city’s commitment to sales‑tax rebates rather than an upfront cash payment.
Staff described the proposed agreement as including $200,000 up front to support façade and ADA renovations and an additional $300,000 delivered as a 50% sales‑tax abatement over a six‑year period. Board members discussed the budgetary impact of encumbering $200,000 up front and noted the draft agreement included clawback language if the business fails or relocates within a year.
After discussion, S1 moved to approve the Chapter 380 arrangement limited to the sales‑tax rebate component (approximately $300,000 repaid at 50% over six years) and to exclude the $200,000 upfront payment. The motion passed unanimously. Staff said the agreement contains clawback provisions for the upfront incentive in the draft but the board chose to proceed only with a performance‑based rebate structure.
The board asked staff to finalize the agreement language and coordinate any final legal review; the item was approved with direction to keep staff communication open with the applicant and to ensure documentation of triggers for the rebate and any clawback conditions.
