Office of the City Manager
Reference: Darden Incentive Agreement Amendment
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Robin Martinez, Director Brighton EDC
Date Prepared: 6/18/24
PURPOSE
Incentive agreement amendment for Olive Garden in Prairie Center
STRATEGIC FOCUS AREA
Strong local employment opportunities, sales tax generation and amenities
BACKGROUND
The EDC has been working with Darden for over 10 years in an effort to attract Olive Garden to Brighton. Darden would like to build a new Olive Garden restaurant in Prairie Center, investing approximately $5.2 million into the project and generating over $5,000,000 in sales annually. Darden expects to create 80 net new jobs at a wage commensurate with adjacent restaurants.
At the direction of the City Manager in early 2023, Brighton EDC staff engaged in discussions with Darden's site selector to negotiate an incentive package. The original agreement was approved in July 2023 for a maximum rebate of $200,000 in Sales Tax over an 8-year period, and 50% rebate on the 1.25% Use Tax collected by the City.
Due to the high cost of development fees, water, and overall construction costs in Colorado, there is a deficit in the cost of the project and the company's ability to meet their financial threshold to make this project happen in Brighton. Through a workable partnership between Darden, THF Realty, and the City, the project will be able to move forward. THF has agreed to front end the cost of the project by reducing the cost of the land, Darden increased their project budget and will reimburse THF a portion of the land reduction cost with the sales tax rebate received by the City. The amended incentive agreement is needed to ensure Olive Garden can build in Brighton.
The City agrees to rebate up to 100% of the one percent received by the City in Sales Tax General Fund collections, which is 50% of our General Fund Sales Tax revenue, up to ...
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