Retail Incentive Programs

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Retail Rehabilitation Grants

For more information, contact Development Services:

Chris Szymczyk, Economic Development Manager

Christopher.Szymczyk@cityofcarrollton.com

972-466-5741

Details on each of the programs can be found below:

Retail Rehab & Redevelopment Performance-Based Matching Grant

retail-rehab-dry-clean-1 The Program is sponsored by the City to provide financial incentives to existing retail shopping centers and other retail facilities for enhancements and/or redevelopment. Improvements must enhance the tax base related to the retail facilities and surrounding development. The Program is retention-based with the goal of rehabilitating the retail facilities for aesthetic or architectural appeal. Each application is determined on a case by case approach.

This is a matching grant program. The City may elect to make a grant in an amount up to 100% the cost of the improvements (refer to eligible expenses below). Such grant will not to exceed $1 million of public funds for each grantee.

1. Acceptable Categories of Improvements

The following are the eligible expenses:

Upgrade or enhanced landscaping improvement costs
Parking lot improvement costs
Signage upgrade costs
Center façade improvement costs
Center redevelopment; mixed-use/residential or office improvement costs

2. Eligibility Criteria for Eligible Retail Facilities

The retail facility or facilities must be older than twenty (20) years.
The property on which the retail facility or facilities is located must be in excess of 2 acres, unless a smaller acreage is approved by the City.
Potential impact of the reinvestment project on surrounding neighborhoods.

3. Application and Approval Process

An application for incentive must be submitted to the City's Office of Development Services by the land owner. The application should include a detailed description of the project including renderings or drawings of the finished project, a project budget including sources of funds and a project timetable. The application should describe how the project will enhance the ability of the shopping retail center to attract and retain tenants.
Project review of each application is required by staff including appropriate comments and recommendations for changes prior to submission to the City Council Redevelopment Committee.
All applications will be reviewed by the City Council Redevelopment Committee. Applicants may be asked to present their project before the Redevelopment Committee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.
City Council will review the recommendation of the Redevelopment Committee and vote to either approve or deny the grant application.
Grant incentives will consist primarily of cash payments payable upon successful completion of all facility improvements or redevelopment as outlined in an incentive agreement to be entered into between the City and the owner of the retail facility or facilities receiving the grant.

Retail Redevelopment and Rehabilitation Performance-Based Grant
(Historic Downtown Carrollton)

For the purpose of this policy, Historic Downtown shall be defined as an area bordered by:

Belt Line Rd. to the North
DART rail right-of-way to the East
Vandergriff to the South
IH-35E to the West

The Program is sponsored by the City to attract retail uses (including restaurants, retail and office uses) to Historic Downtown. It provides for financial incentives to retail facilities for enhancements and/or redevelopment. Improvements must enhance the taxable value of the property related to the other facilities and surrounding development. Each application is determined on a case by case approach, and approval of any project is not guaranteed. Nothing herein shall imply or suggest that the City of Carrollton is precluded from considering other options which would further the best interests of the City.

This is a matching grant program based on an agreement providing performance conditions. The City may elect to make a grant in an amount up to 100% of the cost of the improvements (refer to eligible expenses below). Such grant shall not exceed $1 million of public funds for each grantee. Improvement Costs shall include costs related to improvements which are permanent and fixed to the building or Property and are necessary to improve the building for the approved use, including, but not limited to facade improvements.

1. Acceptable Categories of Improvements / Eligible Expenses

Rent assistance for a limited time
Interior and exterior finish costs
Site Improvements
Development costs
Upgrade or enhanced landscaping improvement costs
Signage upgrade costs

2. Eligibility Criteria for Eligible Retail Facilities

The commercial facility must be located in Downtown Carrollton (as defined above)
The commercial facility must be older than twenty (20) years
The reinvestment project must positively impact surrounding development

3. Application and Approval Process

An application for incentive must be submitted to the City's Office of Development Services. The application should include a detailed description of the project including renderings or drawings of the finished project, a project budget including sources of funds, project timetable (if applicable) and a copy of the lease agreement.
Project review of each application is required by staff including appropriate comments and recommendations for changes prior to submission to the City Council TOD Committee.
All applications will be reviewed by the City Council TOD Committee. Applicants may be asked to present their project before the TOD Committee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.
City Council will review the recommendation of the City Council TOD Committee and vote to either approve or deny the grant application.
Grant incentives will consist primarily of cash payments as outlined in an incentive agreement to be entered into between the City and the applicant receiving the grant.

Specialty Retail & Restaurant

GENERAL PURPOSE
The City seeks to recruit new and retain existing unique, specialty retailers and restaurants that help to differentiate Carrollton from dining and entertainment venues in other communities within the Dallas Metroplex and to contribute to the City Council’s overall vision of enhancing quality of life for Carrollton’s residents. The proposed Specialty Retail & Restaurant Incentive Policy serves the community’s desires for attracting and retaining unique, quality retailers and restaurants that do not already have a strong presence in the marketplace.

ELIGIBILITY CRITERIA
Incentives are targeted to the following types of retailers and restaurants:

1. “Destination” retailers and restaurants that

Have the capability to attract customers from outside the community;
Do not have another existing location within a 5-mile radius; and
Fit well into the existing retail/restaurant economy to provide new and different shopping and/or dining and entertainment experiences.
Local, Regional, and National retailers or restaurants may apply if qualified under subsection (a), (b), and (c) above.

2. Expansion, second location and relocation of existing Carrollton retailers and restaurants:

Meet the criteria set in Section 1 above (subsection (1)(b) does not apply);
Expansion – added square footage must be a minimum of 50% larger than current space.

3. Developers and Shopping Center Owners leasing space to destination retailers and restaurants may apply.

* In order to qualify for incentives, specialty retailers and/or restaurants are required to sign a minimum 5-year lease with the Developer/Shopping Center Owner, no matter which party is the applicant and potential recipient of the incentive. Based on the value of the incentive requested, the City may require the tenant to sign a lease for a period longer than five (5) years but not to exceed fifteen (15) years.

REVIEW CRITERIA
Any request for incentives shall be reviewed on a case-by-case basis by the City Council. Their decision shall be based upon an evaluation of the following criteria, which each applicant will address in narrative form when submitting an Application for Economic Development Incentives:

Fiscal Impact

Anticipated direct sales tax to be generated.
Total number of full-time jobs brought to Carrollton.
Total payroll for all FTEs.
Ad valorem taxes to be generated.

Community Impact

Does the business satisfy/address the community’s needs for unique, quality retailers and/or restaurants?

Competitive Impact

The effect the project would have on existing businesses in Carrollton.
A list of specific businesses seen as direct competitors to the applicant. The City of Carrollton seeks first to retain existing businesses, and therefore will consider whether an applicant will compete or potentially displace an existing business

TYPES OF INCENTIVES

Matching Grants:
- The City may reimburse up to 50% of the costs of façade improvements (including signage, landscaping and lighting).
- The City may reimburse up to 50% of the costs of tenant improvements (not including FFE – fixtures, furniture and equipment).
Development Fee Rebates – The City may approve the rebate of all or a portion of certain permit and development fees.
Rent Assistance for up to 12 months is available to destination retailers and restaurants (not exceeding 3,500 SF) that do not have a strong presence in other locations in DFW and locate within a targeted site identified by the City:

Transit Center District
Shopping centers with occupancy rates below 70%.

Ad Valorem Incentives – the City may offer a tax rebate for up to five (5) years and up to 50% of the City of Carrollton taxes assessed upon value of Improvements.
Sales Tax Rebates – the City may rebate up to One Percent (1%) of Sales and Use Tax for up to ten (10) years.

This incentive applies only to national and regional retailers and restaurants. The sales tax rebate would be paid in annual installments within ninety (90) days of the end of each twelve (12) calendar month period following the issuance of the certification of occupancy for the facility, or other commencement date if no certificate of occupancy is required. Any sales tax incentive would be limited to the extent that the City has received sales tax from taxable sales by the applicant. The City’s obligation to pay the sales tax rebate in the Agreement would additionally be conditioned upon the applicant requesting and providing sales tax documentation from the Office of the Comptroller of the State of Texas.

In the event that the applicant files an amended sales and use tax return or report with the State of Texas, or if additional sales and use tax is due or owing, as determined by the State of Texas, affecting sales tax receipts for a previous twelve (12) calendar month period, the City will be making adjustments accordingly. The City of Carrollton reserves the right to conduct an audit at any time of the applicant’s books, papers and reports, and to ensure compliance with the Incentive Agreement. Furthermore, in the event of termination of the Agreement, the City has the right to recapture any and all rebated taxes for the calendar year in which any default occurred.

The sales tax incentive will be conditioned upon:

Generation of a certain level of sales tax – to be determined based on type of retailer/restaurant
Term of occupancy: a minimum 5-year lease will be required. The term of the sales tax rebate incentive shall not exceed the term of the lease. Should the applicant request and qualify for a sales tax rebate for the maximum allowed period of 10 years, a 15-year lease will be required.

SUMMARY OF INCENTIVES
The incentives provided under this policy are granted utilizing Chapter 380 of the Texas Local Government Code. It is the policy of the City of Carrollton to customize the provisions of economic development incentives on a case-by-case basis to result in a “Win/Win” agreement for the applicant and for the City of Carrollton taxpayers. This individualized design of a total incentive package is intended to allow maximum flexibility in addressing the unique concerns of each applicant while enabling the City to better respond to the changing needs of the community. The City Council reserves the right to make exceptions to this policy as deemed necessary. Furthermore, the City reserves the right to terminate any and all Incentive Agreements should the specialty retailer and/or restaurant cease operations at any time. All incentives are subject to availability of funding. Nothing herein shall imply or suggest a guarantee of approval of any incentive request.

Eligible Projects	Matching Grants		Development Fee Rebates	Rent Assistance	Ad Valorem	Sales Tax Rebate
Eligible Projects	Façade Improvements	Tenant Improvements	Development Fee Rebates	Rent Assistance	Ad Valorem	Sales Tax Rebate
Destination (Not National / Regional)	x	x	x	x	x
National/Regional	x	x	x		x	x
Expansion/2nd Location/Relocation	x	x	x		x

PROCEDURAL GUIDELINES

1. Applicant shall complete an “Application for Economic Development Incentive” as provided by the City.

2. Applicant shall submit a narrative addressing each factor highlighted in the Review Criteria together with a Business Plan.

3. Staff will review all documentation for completeness and accuracy. Additional information may be requested as needed.

4. The application package will be reviewed by the City Council Re-Development Sub-Committee (“Re-Development Sub-Committee”). Applicants may be interviewed by the Re-Development Sub-Committee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.

5. City Council will review the recommendation of the Re-Development Sub-Committee and vote to either approve or deny the grant application.

Back-Fill & Specialty Retailer Incentive Program for Vacant Grocery Store Anchors

The Redevelopment Subcommittee met on May 5, 2009 and made the recommendation that Council adopt the Back-fill and Specialty Retailer Incentive Policies. City Council adopted the Retail Redevelopment Grant Program in 2007 which provides grant monies to aging and underutilized retail facilities. These policies are an extension of that program in order to encourage retailers or specialty retailers to back-fill vacant grocery store anchors in excess of 50,000 square feet in the City. The back-fill policy is for those tenants who can fill more than 50 percent of the total anchor square footage; while the specialty retailer policy is for those tenants who cannot fill the required 50 percent of the total square footage, but must have a demised space of greater than 10,000 square feet.

Back-fill Incentive Program for Vacant Grocery Store Anchors
The goal of the program is to make grants of public money to promote and stimulate local economic development of vacant anchor stores of greater than 50,000 square feet.

1. Vacant Anchor Incentives:

The vacant anchor incentives could include grants for exterior tenant improvements:
- Façade improvements including: painting; lighting, awnings, doors, windows, etc.;
- Signage on storefront and perimeter signage;
- Landscaping; and
- Parking
The anchor must be in excess of 50,000 SF.
Demised space must be a minimum of 50 percent of the total anchor square footage.
This incentive offers eligible recipients an “Exterior Tenant Improvements Allowance” only which may include façade improvements, doors, windows, signage, painting, lighting, landscaping, awning, and parking.
The allowance is a one-time only grant and there will be a maximum amount that is eligible for funding.
The incentives offered would be determined on a case-by-case basis.

2. Eligible Types of Businesses

Retailer or specialty retailers.
There must be a public benefit to the neighborhood such as the provision of goods and services currently not available, new jobs, etc.
For profit, sales tax paying businesses.
The applicant may own the real estate in which the business is located. Alternatively, the applicant must have a fully executed lease, with a term of not less than five years.
Private investment must exceed the amount of the grant given by the City for tenant improvements.

Ineligible Types of Businesses:

This program is for specialty retailers only. The City of Carrollton may decide on a case-by-case basis to exclude other business activities which it believes does not benefit the health, safety, and welfare of the community and/or do not meet the objectives of this program.

3. Eligibility Criteria:

Prior to the property becoming vacant, the property must have been a grocery store for at least five years. This incentive is for the attraction of new specialty retailers who move into a vacant grocery anchor store. The tenants’ eligibility for funding will be determined based on factors such as:

Job creation
Private investment
Square footage of the retail or leased space
Ability to attract other traffic generators or retail stores
Uniqueness
Sector of market served
Minimum of a five-year lease

4. Eligible Tenant Improvements:

The applicant’s plans and permitting process could be expedited.
Exterior Tenant Improvements allowance: façade improvements, doors, windows, signage, painting, lighting, landscaping, painting, awing, and parking.
All grants will be made on an invoice-reimbursement basis only.

5. Funding Eligibility:

Funding for this program will be a maximum of $2-$5/square feet for the tenant space occupied (gross floor area), not to exceed the total square footage of the vacant anchor. These monies will be given to the owner/developer of the respective property for reimbursement of eligible tenant improvements. The allowance is a one-time only grant.

6. Application and Approval Process:

An application for incentive must be submitted to the City's Office of Development Services by the owner/tenant. The application should include a detailed description of the project including renderings or drawings of the finished project, a project budget including sources of funds and a project timetable. The application should describe how the project will enhance the ability of the shopping retail center to attract and retain tenants.
Project review of each application is required by staff including appropriate comments and recommendations for changes prior to submission to the City Council Redevelopment Committee (the "Redevelopment Subcommittee").
All applications will be reviewed by the City Council Redevelopment Committee. Applicants will be interviewed by the Redevelopment Subcommittee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.
City Council will review the recommendation of the Redevelopment Committee and vote to either approve or deny the grant application.
Grant incentives will consist primarily of cash payments payable upon successful completion of all facility improvements as outlined in an incentive agreement to be entered into between the City and the owner/tenant of the retail space or facility receiving the grant.

Specialty Retailer Incentive Program for Vacant Grocery Store Anchors
The goal of the program is to make grants of public money to promote and stimulate local economic development of vacant grocery anchor stores of greater than 50,000 square feet specifically for specialty retailers who back-fill less than 50 percent of the vacant grocery store anchor space.

1. Specialty Retailer Definition:

A retailer concentrating on selling one merchandise line of goods or services for a particular and usually selective clientele. Examples are stores selling sporting goods, organic food, electronics and movie theatres. Specialty retailers have a narrow but deep selection in their specialty.

2. Specialty Retail Incentives:

The specialty retail incentives could include grants for:
- Façade improvements including: painting; lighting, awnings, doors, windows, etc.;
- Signage on storefront and perimeter signage;
- Landscaping; and
- Parking
If the owner/tenant cannot back-fill 50 percent or more of the vacant grocery store, the owner/tenant may fill a portion of the vacant grocery store total square footage. However, the demised space must be a minimum of 10,000 square feet.
This initiative offers eligible recipients an “Exterior Tenant Improvements Allowance” only which may include façade improvements, doors, windows, signage, painting, lighting, landscaping, awing, and parking.
The allowance is a one-time only grant, and there will be a maximum amount that is eligible for funding.
The incentives offered would be determined on a case-by-case basis.

3. Eligible Types of Businesses:

Specialty retailers including home furnishings, electronics, sporting goods, movie theatre and organic, natural or gourmet food stores.
There must be a public benefit to the neighborhood such as the provision of goods and services currently not available, new jobs, etc.
For profit, sales tax paying businesses.
The applicant may own the real estate, in which the business is located. Alternatively, the applicant must have a fully executed lease, term not less than five years.
Private investment must exceed the amount of the grant given by the City for tenant improvements.

Ineligible Types of Businesses:

This program is for specialty retailers only. The City of Carrollton may decide on a case-by-case basis to exclude other business activities which it believes does not benefit the health, safety, and welfare of the community and/or do not meet the objectives of this program.

4. Eligibility Criteria:

Prior to the property becoming vacant, the property would have to have been a grocery store for at least five years. This incentive is for the attraction of new specialty retailers who move into a vacant grocery anchor store. The tenants’ eligibility for funding will be determined based on factors such as:

Job creation
Private investment
Square footage of the retail or leased space
Ability to attract other traffic generators or retailers
Uniqueness
Sector of specialty market served
A minimum of a five-year lease

5. Eligible Tenant Improvements:

The applicant’s plans and permitting process could be expedited.
Exterior Tenant Improvements allowance: façade improvements, doors, windows, signage, painting, lighting, landscaping, painting, awning, and parking.
All grants will be made on an invoice-reimbursement basis only.

6. Funding Eligibility:

Funding for this program will be a maximum of $2.00-$5.00/square feet for the tenant space occupied (gross floor area) not to exceed the total square footage of the vacant anchor. These monies will be given to the owner/tenant of the respective property for reimbursement of eligible tenant improvements. The allowance is a one-time only grant.

7. Application and Approval Process:

An application for incentive must be submitted to the City's Office of Development Services by the owner/tenant. The application should include a detailed description of the project including renderings or drawings of the finished project, a project budget including sources of funds and a project timetable. The application should describe how the project will enhance the ability of the shopping retail center to attract and retain tenants.
Project review of each application is required by staff including appropriate comments and recommendations for changes prior to submission to the City Council Redevelopment Committee (the "Redevelopment Committee").
All applications will be reviewed by the City Council Redevelopment Committee. Applicants will be interviewed by the Redevelopment Subcommittee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.
City Council will review the recommendation of the Redevelopment Committee and vote to either approve or deny the grant application.
Grant incentives will consist primarily of cash payments payable upon successful completion of all facility improvements as outlined in an incentive agreement to be entered into between the City and the owner of the retail space or facility receiving the grant.

Retail Redevelopment/Rehab Incentive Application

City of Carrollton, TX

Learn more about doing business in the City of Carrollton.

Retail Incentive Programs

Retail Rehabilitation Grants

Details on each of the programs can be found below:

1. Acceptable Categories of Improvements

2. Eligibility Criteria for Eligible Retail Facilities

3. Application and Approval Process

1. Acceptable Categories of Improvements / Eligible Expenses

2. Eligibility Criteria for Eligible Retail Facilities

3. Application and Approval Process