Board approves sales-tax rebate for Genesis Drive drive-through after trustee objections
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Summary
The village approved an economic incentive for a restaurant at 201 Genesis Drive that will rebate up to $175,000 of drive-through construction costs from future sales tax, drawing objections from trustees who wanted the village to take a smaller share of the cost.
At the Aug. 18 meeting, the Northwell Village Board approved an ordinance authorizing an economic incentive for a tenant at 201 Genesis Drive that will rebate sales tax receipts to help finance a drive-through.
Staff said the tenant27s lease for Unit B depends on building a drive-through. The total drive-through cost was described in the meeting as about $300,000 and the total project investment at the property, including purchase and improvements, was described as roughly $1,400,000. The incentive approved would reimburse up to approximately $175,000, paid from sales-tax revenue generated by that business over the next 10 years. The terms described in the meeting were that 100% of sales tax from Unit B would be used toward repayment and 25% of sales tax from a future Unit A would also contribute; the incentive would end when $175,000 is paid or after 10 years, whichever comes first.
One trustee told the board they were disappointed the village did not negotiate a smaller contribution and proposed a counteroffer that would cover only 25% of the drive-through cost so the business shares more risk. Staff responded that the estimate and 10-year term were based on sales projections and that reducing the village27s share would either extend the repayment period or reduce the total amount repaid. The board voted to approve the ordinance; two trustees voted no.
Why this matters: the agreement involves use of future local sales tax to subsidize tenant-specific building improvements and transfers financial risk and potential future tax receipts to repay a private investment.
What the board did: approved the economic incentive ordinance for 201 Genesis Drive, authorizing repayment of up to approximately $175,000 from Unit B sales tax over a 10-year period and capturing 25% of future Unit A sales tax toward the cap.
What remains: contract and incentive documents will determine exact repayment mechanics; staff will monitor sales-tax receipts for reimbursements.