Celina City Council members approved a performance-based agreement between the city, the Celina Economic Development Corporation and Lowe’s Home Centers LLC during a special-called Sept. 23 meeting.
Lowe’s is a home improvement goods store that sells tools, appliances and more.
What you need to know
The Lowe’s will be built on a roughly 14-acre site at the corner of Ownsby Parkway and Preston Road inside the Crossing at Moore Farm, a master-planned hub that will soon include a Costco. The Lowe’s store is 94,000 square feet, according to meeting documents.
The details
As the store is being built, all of the construction materials will be sourced for sales tax coming into Celina, 50% of which will go back to the developer through a 10-year reimbursement program.
There is a $1.8 million limit on the reimbursement, which is split between the CEDC and the city, CEDC Director Anthony Satarino said.
- $1.2 million from the city
- $600,000 from the CEDC
To receive the incentives outlined in the performance agreement, the developer must close on the property Feb. 28, 2025 and obtain a certificate of occupancy by March 31, 2027.
Other requirements include:
- The developer must fill at least 120 full-time equivalent positions by the time the store opens, which must happen no later than April 30, 2027
- The developer will construct the facility and invest at least $25 million, $1.8 million of which that must be spent on infrastructure
“It’s agreements like this that allow us to provide these incentives to other businesses as we’re continuing to grow this city,” council member Wendie Wigginton said.
The takeaway
Incentivizing a large retail building to open in Celina means residents will be able to keep their shopping within the city, Satarino said.
“Our residents are having to go to other communities to check all the boxes for their weekly shopping needs,” Satarino said. “As we expand our retail offerings here in the city, that leakage will decrease.”
It also shifts the tax burden off of Celina as residents from neighboring communities start coming into the city to spend money, he said.
The Lowe’s is projected to bring in $46 million in sales during its first year open and $55 million in sales by its eighth year. According to a meeting presentation, 85% of the store’s sales is taxable for Celina.
By the time the Lowe’s has been open for 10 years, the city expects to see a 156% return on their investment, which will bring millions of dollars back to Celina, Satarino said.
“Those increased sales tax revenues allow the CEDC to provide more incentives to small businesses,” he said. “As our sales tax base grows, we’re then able to use those funds and divert them into small businesses.”
