City Council voted Monday to approve a document clarifying the payment terms for economic incentives the city is set to deliver to Walmart and Inland Southeast Darien.
The document doesn’t change the terms of the original agreement, but the resolution accompanying the document said it “will assist the long-term process and eliminate any potential disputes” over cash flow.
In April the city agreed to pay $2 million each to Walmart and Inland in the form of a rebate on sales tax collected once the Darien Walmart expands into a super-sized store. The companies requested the incentive to help offset costs associated with the development.
Walmart and Inland will collect sales tax that the Super Walmart generates beyond a base of $882,628, which is roughly what the city gets from Walmart now. The rebate will be capped at $300,000 annually for Walmart and $200,000 for Inland.
According to the document outlining how the incentive will work, Walmart will be paid before Inland. Once Walmart maxes out at $300,000 for a given year, the city will start paying Inland.
In one example, Super Walmart generates $1.35 million in sales tax. The city gets $882,628, Walmart gets $300,000 and Inand gets $167,930.
City attorney John Murphey said a similar table appeared in the original agreement with Walmart and Inland but was removed. At Inland's request, Monday's vote puts it back in.
The document said that it is an “illustrative example only.”
To see all of the examples, click the document in the photo box above.