BRENHAM SHOPPING CENTER PROJECT SUFFERS DELAYS DUE TO PANDEMIC
Progress on the Baker Katz shopping center project in Brenham is still coming along, but has slowed significantly.
The retail development located on 35 acres of land at the Highway 290-Chappell Hill Street intersection was originally planned to open its first stores by spring of 2021, but that timeline has been pushed back to spring of 2022.
Brenham City Manager James Fisher said the city is still working with Baker Katz on amending the economic development agreement between them, but the two are essentially “pushing everything back a year”. He said the developer intends to resume construction on the 200,000 square-foot shopping center in the fall or winter, and will be turning buildings over to tenants by December of 2021.
Fisher said concerns about the economy have somewhat shaken the confidence of some prospective tenants, but overall interest in the project is still strong.
Because of market volatility, tenants are careful in announcing what projects they are participating in. However, Fisher said people should start figuring out what businesses are coming to town around this time next year.
Utility extensions for the project, according to Fisher, are nearing completion. He said completing the regional lift station, located in the proposed Brenham Family Park, is the biggest piece remaining with utility work, adding that water and gas lines have all been laid and wastewater lines are being put in place. The city will be working with Bluebonnet Electric Cooperative to bury electric lines underground.
Fisher said progress has been a bit slower on the widening of South Chappell Hill Street and design of traffic signals at the intersection, due to TxDOT being slowed down by COVID-19, but the projects are still on track to be completed prior to the shopping center’s opening.
In 2019, Baker Katz entered into a sales tax abatement with the City of Brenham and Washington County for the project. The agreement will reimburse the developer $6 million in sales taxes over a 12-year period, with the city contributing $4 million and the county putting forward $2 million. The city will also contribute roughly $2 million for traffic and infrastructure improvements.
With some of the larger spaces’ rents likely to be in the mid five-figure range per month (not including utilities, wages / salaries, insurances, and other costs), it’s no wonder that the project is on hold. With the current state of the economy, and the likelihood that it will remain that way for at least the next 4 to 6 months, it would be difficult for a retailer that provides non-essential goods and services to make a go of it. That is not to say that the city should give them everything free so that they have no tax expense–– unless the city is going to give every business already in place the same deal. Sadly, a retail center like this does not usually cause a large number of people to relocate, as the wages are not enough for families to buy new homes, and many of the jobs are merely hourly wage positions. As well, retail outlets seemingly open and close every few months. Whatever the case, you can bet that the developers are not going to lose any money on the project, regardless of how long the land sits vacant; the taxpayers and the city, well…
The sales tax rebate should not exceed the sales tax that the businesses generate. Rebates should be reimbursed annually and not exceed the previous years sales tax generated at the shopping center. Reimbursement should not exceed $500,000 ror the annual amount or the twelve years.
Doesn’t anyone else smell that smell????! Seems like another cover up and lie to the citizens of Brenham…. When will the so called leaders of Brenham be honest????First was t was letting the land settle…. Now this??????
Every voting citizen needs to stick to their guns & vote for change. This mess won’t be forgotten & if we don’t get new leaders w/backbone & business smarts we’ll pay the price. County no different…. Maybe 1 or 2 commissioners make good decisions but it needs to start w/Judge. Wish Ed Emmett former Houston Judge would move here & run. The man knew the job & did it well. Look what a mess Houston has now all because bad votes & a person w/no knowledge of running a County in office..Let’s not get there .
You are spot on , we all smell the rat, the fumor from the continual failure to be forthcoming is sickening.
We know how many of the original businesses have pulled out of the project due to the depressed economics in Brenham , there are certain businesses and individuals here that wish to keep wages depressed and outside companies from the area to prevent salary competition from invading their little gold mine.
Until this stigma has been removed from Brenham participants will be reluctant to invest in growth because depressed wages initiated by a certain company has always kept Brenham in a depressed state.