Englewood City Council gave unanimous approval July 1 to a package of reimbursement incentives for the development planned at 5001 S. Broadway, the site of the former Larry Miller Nissan dealership.
The incentive, in the form of a total of $250,000 in tax rebates, will reimburse the developer for making public improvements on Broadway to include installation of a traffic signal and realignment of road lanes.
“I think this a a good negotiated use of the city’s incentive program to help foster development,” Council Member Joe Jefferson said before the approval vote.
Mayor Pro Tem Jim Woodward voted for the incentives and said the planned development will be a major business addition to the south end of Broadway.
“Providing incentives for this project will bring dividends for Englewood,” he said. “This will be a long-term plus for our community.”
Cadence Capital Investments plans to demolish the former Larry Miller building and, on the 3.7-acre site, will construct a project that will include a 27,000-square-foot building for Sprouts Farmers Market, an 8,075-square-foot site for Advance Auto Parks and about 8,000 square feet that will be leased to a retail business or a restaurant.
Alan White, community development director, noted the incentives will be provided by rebating taxes that would have been paid to the city.
The agreement calls for the company to receive a rebate of 50 percent of the building use tax paid on materials used in the construction, and 50 percent of the taxes collected on furniture, fixtures and equipment. The rebate is not to exceed $68,000.
In addition, the developer will receive a 50 percent rebate of sales taxes collected not to exceed $182,000 or for three years, whichever comes first.
The money is to repay the company for funds used to make used public improvements on South Broadway, including the traffic-signal installation. The incentives are to cover the actual cost of the improvements but are not to exceed $250,000.
According to information provided to council members, it is estimated that Sprouts will do $20 million in business the first full year of operation, with about $4 million of the total receipts being subject to sales taxes. That is because sales taxes are not collected on grocery items.
It is estimated that the remaining retail spaces in the development will do about $3.85 million in business the first full year of operation, which will mean the companies will pay Englewood about $275,000 in sales taxes. The sales tax collections to the city are expected to increase to about $326,000 in three years.