The city of Katy approved a $6 million sales tax abatement agreement with American Furniture Warehouse during its regular City Council meeting June 25. The store will bring about 350 jobs to the Katy area, Katy Mayor Chuck Brawner said.

According to city documents, American Furniture Warehouse will open a warehouse showroom store in The Village at Katy, an 84-acre planned development district, or PDD, located in the northeastern corner of I-10 and Pin Oak Road.

The agreement provides $6 million in sales tax abatements to American Furniture Warehouse over 18 years, according to city documents. Brawner said the abatement is performance-based, requiring American Furniture Warehouse to generate a certain amount of sales tax revenue.

According to the agreement, more than $500,000 in sales tax must be generated by the furniture retailer before any rebates are given. The amount of the abatement is capped at $6 million. Brawner said the city expects to earn $36 million in sales tax over the next 18 years in addition to property and inventory taxes from the new retailer.

The new development will include two drainage ponds to assist with stormwater retention, according to concept artwork provided by the city.

Other possible businesses at The Village at Katy include office complexes, commercial or service centers, shopping centers, hotels, medical facilities, a recreation center and self-storage with at least 70 percent of the street-facing portion being glass and masonry, according to the city’s zoning requirements.

Brawner said the residents surveyed about the development had indicated they wanted the center to be presentable because many consider Pin Oak Road to be the main entrance to the city from I-10. Brawner said restrictions in the PDD will ensure the shopping center is not an eyesore and offers something for everyone.

“I’m hoping [The Village at Katy] brings in some good restaurants and some other things that people will enjoy going to,” Brawner said.