Athens City Council on a 3–1 vote approved a resolution and an implementing ordinance allowing the mayor to pay back to Olive Garden Holdings LLC 100% of the city sales-tax proceeds the city actually receives from the restaurant in arrears for up to six years or until $600,000 has been paid to the company.

The council’s resolution (item T) described the project as expected to create approximately 80 jobs, involve about $6.5 million in private investment and generate roughly $4.5 million in annual taxable sales. The subsequent ordinance (item U) authorizes the mayor to make the payments under the terms of a project agreement between the city and the company.

Councilmember Harold Wells, who presented the item, called Olive Garden “a quality restaurant” and argued the incentive is designed to grow sales tax and spur downtown and interstate-area development. “If we’re not growing sales tax, we’re not growing our city,” Wells said during debate.

Public commenters and some council members urged caution. Amanda Scholte, who identified herself and asked for clarification, noted the Texas Roadhouse incentive the council approved previously had been paid to a developer rather than the operator and asked whether the Olive Garden payments would go to the company or to a developer. City staff responded that under the current proposal the payments would go directly to Olive Garden Holdings LLC.

Resident Billy Cannon and others questioned whether a national chain with large national revenues should receive local incentives. “I’m not totally convinced that they need our $600,000 to come here,” Cannon said during public comment.

The vote on the resolution and the ordinance was 3 yes, 1 no, with Councilmember Wayne Harper recorded as the lone no vote and three other members recorded as yes. City staff said the payments would be made only from sales tax actually collected from the project and only up to the stated cap/time limit in the agreement.

The council approved the items after a brief discussion; the measure will be implemented according to the project agreement the mayor is authorized to execute.