WASHINGTON CO. COMMISSIONERS HEAR FROM BAKER KATZ ON SHOPPING CENTER PROJECT
Washington County Commissioners met with representatives of Baker Katz today (Monday) to discuss the retail development project planned on Highway 290 in Brenham.
Commissioners spoke to Kenneth Katz and Neal Wade of Baker Katz in workshop session, regarding a sales tax abatement for the project. Baker Katz has purchased around 50 acres of property on Highway 290 and Chappell Hill Street, and is planning to build a new shopping center there. The commercial real estate firm entered into a sales tax reimbursement agreement with the City of Brenham in January.
This agreement specifies that Baker Katz will receive $6 million in sales tax reimbursement from its development, in the form of annual grant payments. The firm requested that the county participates in that same agreement. The agreement is set to expire in 2033, or once the firm has hit the $6 million reimbursement cap.
Katz said if the county participates in the agreement, it would contribute roughly $2 million compared to the city’s $4 million, or “50 cents to every dollar”. He assured commissioners that the county would not be responsible for any infrastructure.
When asked by commissioners what kind of retailers would be a part of the shopping center, Katz said that no agreements had been reached with any vendors, but they have been in contact with many “major” retailers. He said the center is planning to house “junior” anchors up to much larger retailers facing Highway 290, in addition to smaller retail stores and restaurants along the highway frontage.
Katz also noted that this development project was not dependent on the county signing up to help reimburse the firm. County Judge John Durrenberger added to that, saying the city has assured the county that it had a contingency plan, and would be moving forward with the project with or without the help of the county.
Commissioner Kirk Hanath reiterated how important it is for commissioners to decide on the best things for their constituents, as well as staying responsible towards taxpayers. He said many people in the county are wanting higher wages, and doubted that this new retail growth would provide that.
Commissioner Candice Bullock responded that this plan is trying to address the sales tax leakage and add to the county’s tax base. Hanath said, while shoppers do often leave the county to shop elsewhere, many of the new stores coming with this development will not be full-sized stores, so leakage will still occur.