Office of the City Manager
Reference: Olive Garden Holdings, LLC Incentive Agreement
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Robin Martinez, Director Brighton EDC
Date Prepared: 7/20/2023
PURPOSE
Presentation of Olive Garden Holdings, LLC Incentive Agreement
STRATEGIC FOCUS AREA
Strong Local Employment Opportunities, sales tax generation and amenities
BACKGROUND
The EDC has been working with Olive Garden Holdings, LLC for over 10 years in an effort to attract Olive Garden Italian Restaurant to Brighton. The most recent conversations began in 2021. Olive Garden Holdings, LLC 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. Olive Garden Holdings, LLC expects to create 80 net new jobs at a wage commensurate with adjacent restaurants.
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. At the direction of the City Manager in early 2023, Brighton EDC staff engaged in discussions with Olive Garden Holdings, LLC site selector to negotiate an incentive package. The EDC and site selector have tentatively agreed to a Sales Tax Rebate not to exceed $200,000, plus a 50% rebate on the Use Tax. The Sales tax reimbursement period would be 8 years.
? Use-tax rebate is estimated at $32,500 based on construction costs of $5,200,000. The City agrees to rebate up to 50% of the one percent received by the City in Sales Tax General Fund collections or otherwise stated as 25% of the City's General Fund Sales Tax collections, up to a maximum of $200,000 (Two-Hundred Thousand Dollars) for a period not to exceed eight (8) years from the date of Opening, whichever comes first.
? The Company shall ...
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