continued “We’re actually in some cases actually making a negative cash flow, because our services are more expensive than what we are getting in revenue,” Koetzle said.
The town is estimated to pay around $225,000 to fix drainage issues at the Target property, according to town officials.
After the presentation, resident Dorie McArthur questioned why the town agreed on Target if it was such a “bad deal.”
Koetzle said it is better to have a new store than a “decrepit old blight” at the town center. He said once the PILOT agreements expire, the development will “start to pay off,” but it could take 10 to 12 years.
“There is a lot of good news,” Koetzle said. “It just ain’t all today.”
Councilman John Pytlovany added the store would increase the amount of traffic and could spur additional businesses to be attracted to the area.
Koetzle blasted the sales tax distribution agreement recently negotiated and approved by the county and city, which lasts eight years until Nov. 30, 2020.
Towns receive a total distribution of about $7.8 million annually, which is unchanged from the previous four-year agreement ending soon. Those funds will be proportionately split up between each municipality based on real property value.
Metroplex Development Authority’s sales tax revenue given locally could provide an increase if growth is experienced. From the county’s current 4 percent sales tax, Metroplex directly receives 0.5 percent of the revenue generated. Thirty percent of that portion is given directly to towns and villages, with the remainder retained by Metroplex to help fund economic development projects.
The county, though, isn’t required to distribute any sales tax revenue to the towns, so receiving any funds is seen positively by some.
“The town has brought a lot more revenue in sales tax than it did four years ago, but we are not getting anything more for it,” Koetzle said. “The county is confiscating … the sales tax to offset the need to raise property taxes.”