San Marcos City Manager Jim Nuse said Thursday that the city has not rebated any money to the developers of StoneCreek Crossing from a $6 million incentive agreement reached in 2008.
Nuse indicated that the shopping center probably didn’t generate enough sales to be eligible for a city sales tax rebate under the Chapter 380 development agreement.
The shopping center has been listed for the February foreclosure sale at the Hays County Courthouse. County records show that StoneCreek Crossing, LP, executed a promissory note in 2007 that has matured. The promissory note is payable in the original principal amount of $38,642,443 to lender Amegy Bank National Association, which requested that all real property, fixtures, and personal property on the approximately 95 acres at StoneCreek be sold for cash to the highest bidder.
“The City of San Marcos has not made any payments on the $6 million incentive agreement to Stone Creek approved in 2008,” Nuse said in a statement issued by the city. “Under the agreement, the city receives the first $500,000 in sales tax revenues annually and Stone Creek would have to generate more than that to be eligible to start receiving the incentive. At this time, our staff is working on the calculations to see if they qualify for any refund.”
The agreement provided for the developer to be eligible for a refund of 80 of property tax revenues generated by the increased value of the property for up to five years.
Amy Madison, President and CEO of the Greater San Marcos Economic Development Corporation, said earlier in the week that she wasn’t sure if the stores at StoneCreek Crossing had generated enough revenue to trigger the rebates.
The amended Chapter 380 development agreement passed by the city council in October 2008 said the developer would receive the first $1 million in sales tax revenues it generates “less $500,000,” plus half of sales taxes generated above $1 million per year. The agreement was to run for five years or until StoneCreek was rebated $6 million.
City officials said the city staff is evaluating the legal status of the Chapter 380 agreement.Email | Print