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Council approves $875,000 performance grant plan for Sprouts anchor, with leasing milestones for follow-up payments
Summary
Council approved a performance grant structure for Project Sprouts—$350,000 payments for the first two milestones and $175,000 for a third payment—tied to Sprouts opening and subsequent multi‑tenant building leasing milestones (50% leased year 2; 75% leased year 3). Council noted the additional multi‑tenant tenants are not yet identified and that the agreement does not include revenue or jobs guarantees beyond leasing thresholds.
Economic development staff presented Project Sprouts, a planned commercial development anchored by Sprouts Farmers Market at the SH‑130/US‑79 area, and the EDC’s recommended performance grant to support its buildout. Janie Gamboa explained that the first milestone triggers on Sprouts obtaining a certificate of occupancy or beginning operations; subsequent grant payments are tied to two 12,000‑square‑foot multi‑tenant buildings being built and leased at a 50% (year 2) and 75% (year 3) threshold respectively. She said the total grant schedule would be two $350,000 payments and a final $175,000 payment, subject to milestone verification.
Several councilmembers asked about accountability measures; staff confirmed the agreement requires the buildings to be constructed and leased to the stated thresholds, but that the specific tenants for the multi‑tenant spaces are not identified in the agreement and there are no explicit job or revenue targets tied to those unnamed tenants. Council approved the EDC-backed incentive by a 5–2 vote after discussing the structure and protections in the contract.
