Oswego Approves Sales Tax Incentive for Steakhouse
Aug 16, 2016 09:36PM ● Published by Steven Jack
Darden Restaurants Inc. provided this drawing for their proposed Oswego location.
The Oswego Village Board has approved a sales tax sharing agreement that will pave the way for a LongHorn Steakhouse to locate along Route 34 between Fifth Third Bank and Panda Express.
Trustees voted unanimously to give a .50 percent sales tax rebate for 10 years up to a total of $180,000 to LongHorn developers Darden Restaurants Inc. Construction will begin on the restaurant in February, according to village documents.
Village Administrator Dan DiSanto said even though the village will return $180,000 back to Darden, it will collect an estimated $650,000 in sales tax over the 10-year period.
Darden is seeking the incentive because the type of restaurant they plan to build in Oswego is estimated to cost the company about $500,000 more than their typical location, said Rod Zenner Community Development Director.
Darden originally came to the village seeking over $450,000 in financial incentives, but the figure was eventually negotiated to the agreed upon $180,000.
Trustee Ryan Kauffman sought to clear the air about the incentive, saying he believes many people may be under the impression that the plan amounted to a $180,000 net loss to the village.
"I want to make clear that this is a huge win for the village," he said. "This is going to bring us $650,000. ... in addition to filling a niche and creating 50 new jobs locally."
Trustee Karin McCarthy Lange said she originally opposed such an economic incentive, but she said she grew tired of losing potential retailers and restaurants to neighboring communities.
She specifically referenced the recent news that Binny's Beverage Depot would be locating in Montgomery next to JC Penny's and Sam's Club. According to reports, an incentive agreement of over $1 million is involved in bringing the alcohol giant to Montgomery.