Montgomery Approves Tax Incentive for Sam's Club Development
Village will pay for site improvement costs if construction begins by Nov. 15.
The Montgomery Village Board approved a tax incentive agreement Monday night to bring a Sam’s Club store to the Ogden Hill Development.
The agreement, which will have the village reimbursing Sam's for site improvements, will cost the village about $4.5 million in anticipated tax revenue. The amount cannot exceed $7.5 million, according to the agreement.
Trustees approved the plan in a 5-1 vote. Trustee Andy Kaczmarek was the lone no vote.
If improvements begin by Nov. 15, the village will pay 75 percent of sales tax revenues received from the store back to Sam’s Club through August 2028, or until the final improvement costs are repaid.
The estimated cost to improve the site is $4.5 million. The $7.5 million “has been calculated as the value that is needed to be paid in the future to cover these costs today,” according to a board memo from Jeff Zoephel, acting village administrator.
Zoephel has said the village stands to gain about $750,000 annually in sales tax revenue from the store, of which $562,000 would be repaid to Sam’s each year of the agreement.
The store, which will include a gas station, is expected to bring about 170 new jobs to the area.
Editor's note: The original version of this story has been edited for clarity.