What happened
After a Facebook post from Hutto Mayor Mike Snyder about the possibility of a Sprouts coming to Hutto drew significant online attention, developer Endeavor Real Estate presented the proposal to City Council.
Adam Zimel presented the details of the proposed development on behalf of Endeavor Real Estate at the meeting, three days after giving a presentation to Hutto Economic Development Corporation's boar of directors on July 14.
The development plans to have Sprouts as its lead tenant.
“One thing that we have continued to hear is that grocery is a much needed use in these areas,” Zimel said.
Endeavor's plans include a 23,000-square-foot building to house Sprouts. Another 24,000 square feet would be dedicated to multi-tenant space, including “fast-casual” restaurants and other services. The development as a whole would cost around $28 million.
Council voted 5-2 for the city to provide a $875,000 grant to help fund the construction, paid out over three years.
The conditions
Council’s vote stipulates the be grant be paid out as follows:
- $350,000 at the completion of the Sprouts building
- $350,000 when one 12,000-square-foot building is 50% leased
- $175,000 when the second 12,000-square-foot building is 75% leased
Zimel said that Endeavor will also commit to bring a full-service restaurant to the development. Sprouts will aim for a 2027 opening, according to Zimel.
The discussion
Place 1 City Council member Brian Thompson and Place 6 City Council member Aaron King raised concerns about paying incentives for a “specialty” grocery store, and its viability in the market.
“I’m just trying to figure out how to respond to residents that say, ‘This deal is a handout to a corporation with the guaranteed return being suspect,’" Thompson said.
Snyder expressed interest in moving forward with the deal, even if other grocery stores would be more desirable, because it will bring both tax revenue and a grocery option to the city.
Place 4 City Council member Peter Gordon said after seeing community discourse on Facebook, he feels the store won’t add to grocery options because it’s not a store people will go to.
“I’m watching what the citizens are saying and the citizens are saying this is not it,” Gordon said.
Place 2 City Council member Dan Thornton said he thinks the city should bring in the Sprouts, and that there can be more full-service grocery store options in the future.
“We can't bring anything that's going to please everybody,” Thornton said. “Am I thrilled about the amount of the incentive? No. The alternative is not having anything there. I don't think it puts us out. I think it's a net positive quicker than some of the other deals we've made.”
