Evans City Council members hope sales tax incentives for the retailer Sam's Club will make the city more than a place to sleep -- but also a place to shop.
The council unanimously approved an incentive agreement that would waive an estimated $37,443 in building permit fees and return more than $1.6 million in sales tax revenues to the membership retailer through more than four years -- a shareback of nearly $400,000 per year.
Evans has used similar incentives to attract retailers such as Walgreens and McDonald's -- and several council members said they hope it can lure others in the future.
"I think this goes a long way toward dispelling the notion that Evans is just a bedroom community," said Evans councilman Gregg Rhoads. "Long story short, I think it's just a perfect hand-in-glove fit."
The new store -- a popular spot for shoppers to buy in bulk -- is expected to generate about $1.75 million to $2 million in annual sales tax revenues for the city.
Even with the incentive program, the city would still keep at least 75 percent of all sales taxes generated by Sam's Club. A portion of the sales taxes are required to be kept by the city for services such as police and fire.
Councilman Fred Lambert said the money refunded to Sam's Club would have to be used for improvements that could benefit people who don't pay for a membership to the store, such as restrooms, a snack bar and parking lots.
He also emphasized that incentive agreements such as the one adopted by the city are used by virtually any city and town to attract retailers.
"I think it's important for the public to know that we're implementing a pre-existing incentive program," Lambert said of the program, which has existed in Evans since 1990.
Plans for Sam's Club in Evans:
- Estimated sales tax rebate during just more than four years: $1.645 million, or nearly $400,000 per year
- Estimated building permit fees waived: $37,443
- Estimated sales tax revenues for the city: $1.75 million to $2 million per year
- Estimated building permit fees for the city: $715,000
- Planned location: 3103 23rd Ave.
- New jobs expected: More than 200
