The city of Fulshear will not move forward with a revised performance-based incentive agreement with Home Depot.
At a Sept. 15 meeting, Fulshear City Council voted 4-3 to deny a Chapter 380 economic development agreement with Home Depot. Mayor Pro Tem Sarah Johnson and council members Richard Russell and Kimberly Bow cast the dissenting votes, meaning they supported moving forward with the agreement.
The council denied an earlier Chapter 380 agreement at an Aug. 4 meeting due to traffic concerns, Community Impact previously reported.
The details
The proposed 134,000-square-foot Home Depot store near FM 1093 and FM 1463 represents roughly a $38 million investment from the company and is expected to generate at least 40 full-time jobs, according to agenda documents.
The proposed agreement is for one-quarter of 1% of the city's local sales tax generated by the development for five years, or until a revised maximum reimbursement of $950,000 is attained. Additionally, the agreement contains several project enhancements to be paid for by Home Depot.
Though the limit is set at $950,000, the total rebate is expected to be closer to $500,000 based on estimated taxable sales, per agenda documents.
What’s changed
Assistant City Manager Kelsee Lee said that since Aug. 4, Home Depot has lowered the incentive agreement cap from $2 million to $950,000 and completed a traffic impact statement.
Lee said a traffic impact statement is based on studies conducted by other entities, such as the Texas Department of Transportation, when FM 1093 and FM 1463 were constructed. However, the statement does not take into account traffic counts after construction to establish new base levels.
A traffic impact analysis examines how a surrounding area can manage the increased traffic introduced by a project, according to the Texas Department of Transportation.
Clay Trozzo, a broker for Property Commerce, said a traffic impact analysis was not done due to its cost and six-month completion time.
Zooming in
Bow said a study needs to be completed because she believes semi-trucks will not clear certain street corners near the proposed store. Council member Abhijeet Utturkar also said a traffic impact statement is “missing something” when considering how traffic operates near the proposed site.
However, Cassie Permenter, a project manager whose firm was hired by Home Depot, said her firm has completed studies, has been able to get trucks through the area and plans to do a live study.
Council member Camron Miller said although he likes the idea of a sales tax, he questioned why a business the size of Home Depot needs a Chapter 380 agreement in the first place.
“It seems like the [Chapter] 380 agreements should be focused on smaller, mid-sized corporations that need the help,” Miller said.
However, Johnson said the city will not receive any sales tax if Home Depot does not come to Fulshear. Lee said with the Chapter 380 agreement, over a 10-year period, the city’s estimated sales tax amount would be approximately $4.4 million.
Trozzo said without a Chapter 380 agreement, Home Depot will not come to Fulshear.
Trevor Hamilton of the accounting firm EY added that Home Depot has Chapter 380 agreements with other municipalities, including Katy.
Also on the agenda
Fulshear City Council also approved Home Depot’s master sign plan for the on- and off-property signage based on the planning and zoning commission’s recommendation.
The outparcels follow the sign regulations in the Fulshear code of ordinances, according to agenda documents.
