Jeff Branscome writes about Spotsylvania County.
Cafaro Company and the Tax Incentives
When the Board of Supervisors in 2006 approved the rezoning for the Spotsylvania Towne Centre, it included a tax incentive package for the mall. But it was all based on the mall building the Harrison Road Connector, and we know how that turned out.
On Monday, Cafaro Company officials and attorneys discussed the tax incentive EDA deal with county officials, but local officials are not talking yet.
County Attorney Jacob Stroman said there is not much he can say at the moment.
"I think it is an issue that the Cafaro Company raised," Stroman said. "I wasnt quite sure what the topics of that conversation were going to be. I think … the board wanted to revisit that issue in light of the fact that the obligation to build the road has gone away. I think that the board will be revisiting that in the near future, and perhaps as early as its next meeting."
The deal is worth up to $18.1 million in industrial development grants over 22 years. The agreement states that before collecting, the Cafaro Co. must build the $80 million open-air “lifestyle center,” spend $12 million to renovate the existing mall, and spend another $40 million on transportation projects, including the connector road.
The grants are equal to one-half of Spotsylvania’s share of the additional sales- tax revenue generated by the new stores. Cafaro can receive one-quarter of Spotsylvania’s share of the additional sales- tax revenue if any of the mall’s anchor stores— JCPenney, Sears, Belk, Macy’s and Costco—expand.