By Moses Leos III
A $210,000 deal from the Buda Economic Development Corporation (EDC) gives cash incentives and sales and property tax rebates for three projects.
The deal, unanimously approved by a 7-0 vote from the Buda City Council July 1, could generate $1 million in new revenue for the city over a ten-year period.
“The simultaneous and unanimous approval is indicative of how the EDC and city are working in partnership to make wise investments in the economic growth of our community,” EDC Executive Ann Miller said in a press release.
Miller said the EDC and the city worked with all three projects for more than a year. They involve Spohn and Associates, owners of Pinballz Kingdom, Fat Quarter Shop and the Buda Mill and Grain Company (BMG)
However, a slight delay occurred when the city and EDC worked on ironing out an incentive policy.
Both entities developed the Incentive Task Force in 2013 headed by Miller and city manager Ken Williams.
The task force critiques each applicant based on several factors, then scores their application on a 0 to 100 scale.
Miller said all three businesses scored above 50 points, making them eligible for 30 percent of the present value of the equivalent of the tax revenue impact for up to ten years
“The incentive policy that was adopted last year allows the city of Buda and the EDC to make strategic investments in Buda’s development, while being responsible stewards of taxpayer money,” Mayor Todd Ruge said in the release.
Miller said approved development locations and design standards led to all three earning incentives.
“For Buda Mill and Grain and Spohn and Associates, those created opportunities for tourists and residents,” Miller said. “Fat Quarter Shop had significant employee and capital investment.”
Fat Quarter Shop, an online specialty fabric store based in Buda since 2007, will retain 85 jobs and is expected to create 12 more within the next five years.
In addition, the EDC awarded Fat Quarter property tax rebates that span five years. It will go toward a new 60,000 square foot facility that could cost $4.5 million. Currently, the EDC and co-owners Kimberly and Kevin Jolly are in discussions regarding the location of their new facility.
Fat Quarter will also receive cash incentives from the city. Kevin Jolly said the funds would go toward furnishing IT systems, along with desks and warehouse equipment.
“We are very appreciative of the support from the City of Buda,” he said in a news release. “It will be exciting to see it develop in the next few year and we look forward to being a part of it.”
The BMG will get sales and property tax rebates from the city and the EDC over a ten-year period. They will be required to maintain ten full time positions. In addition, they must generate sales tax revenue; they are expected to generate $400,000 in sales tax over ten years.
Plans for the BMG’s future include retail and restaurant space, along with a possible brewery.
“We are very excited to be moving forward,” Saenger Ellis, co-owner of the BMG, said in a statement.
Spohn and Associates will gain over $60,000 in cash incentives from the EDC, which will go toward permitting along with interior and exterior renovations.
The group plans to open Pinballz Kingdom, a family arcade and entertainment complex. Darren Spohn, co-owner of Pinballz, has worked on renovating the former Dorsett 221 Truck Stop on the northbound service road of IH-35.
Spohn said a portion of the incentive will go toward landscaping and exterior work. He said Pinballz plans to open in early August.
“It’s going to be a multimillion dollar business. We have never opened anything this large,” Spohn said. “We appreciate the consideration and the grant from the EDC.”
Pinballz is projected to generate $100,000 for the city through the year 2020.
With the deals in place, the EDC now focuses on future projects.
“The Buda EDC is working with several other prospects and is also providing assistance with several companies that are in the process of expanding to Buda.”
