An incentive deal aimed at landing a new Academy Sports + Outdoors is now moving forward in Magnolia after City Council approved a Chapter 380 economic development agreement with Capital Retail Properties at its Feb. 10 meeting.
What we know
City leaders described the agreement as performance-based and tied to new sales tax revenue from the project. Located on an approximately 7-acre tract near the intersection of FM 1488 and Spur 149, at least 50,000 square feet of retail space will be set aside for the store, according to the agenda packet.
The stipulation is that the project create and maintain at least 40 jobs, and the incentive is sales-tax-based and capped at $750,000 over 15 years, Magnolia Economic Development Executive Director Rachel Steele said.
“If sales taxes are not generated, then the development does not receive the benefit of that economic ... incentive,” City Attorney Leonard Schneider told the council during the meeting.
City staff said the request is capped at $750,000 and is “split” through sales tax revenue, calling it “a very low amount for this type of project.”
Staff also told the council the structure is time-limited over a 10-year period. If the amount is reached within the first five years, the contract is finished.
The developer’s representative said the agreement is “condition expressly upon delivering 50,000 square feet ... [and] 7 acres for an Academy.”
The representative added that if key benchmarks aren’t met—sales tax is not generated and jobs are not created—then no incentives would be received.
