WASHINGTON CO. JUDGE TALKS ABOUT DEAL FOR NEW SHOPPING CENTER

  

Washington County Judge John Durrenberger has issued a statement regarding the economic development agreement the County Commissioners approved Tuesday with the developer of a retail shopping center in Brenham.

In a 3 to 1 vote Tuesday, the County agreed to join the City of Brenham in an agreement with Baker Katz for a new shopping center near Chappell Hill Street and US Highway 290 on the south side of Brenham.

Judge Durrenberger, whose background is in business, says he viewed the proposal as a business deal for the County…a true investment…not truly an abatement.

Durrenberger explains that there is no upfront investment required by the County, and no infrastructure costs.  There is a guaranteed revenue stream from the project’s sales taxes that will be used to make the abatement payments to the developer.

The agreement estimates the center will generate $200,000 in sales taxes annually, of which the County will return 90%.  The shopping center property is expected to produce $96,000 in property taxes annually for the County, whereas the current raw land only produces $6000 a year.

Durrenberger goes on to say that the agreement has a maximum term of 14 years, and a maximum payment of $2 million, whichever comes first. With the increase in property taxes, he says it’s a guaranteed profit for the County.  Looking at it from a business perspective, Durrenberger asked “What businessperson would not do this deal?”

The City of Brenham has agreed to provide infrastructure improvements for the new shopping center, and to abate $4 million in sales tax over the 14 year agreement.