City of Washington and Franklin County officials have signed off on an amended development agreement for the Phoenix Center II retail center in Washington.
City council members passed an ordinance Monday night authorizing the mayor to enter into the amended agreement. Franklin County commissioners took action on the matter at their meeting Tuesday.
Under the initial development agreement approved in 2006, the city and county agreed to rebate 50 percent of the sales tax revenue generated by businesses in the development to help finance public improvements.
Later, a Community Improvement District (CID) was established which authorized an additional three-quarter-cent sales tax on purchases made at stores in the center.
Both the CID tax and the city and county sales tax commitments were established for a specific number of years.
The amended agreement extends the time period that the CID tax can be levied and reduces the length of the city and county sales tax contributions.
Because of that, the city will pay out about $700,000 less in sales tax contributions by the end of the term’s agreement, according to City Administrator Jim Briggs.