ST. JOSEPH — A new $1.5 million gas station and convenience store is one step closer to being built in St. Joseph.
Developers from Wortman-Keller Development met with the St. Joseph finance committee this week on Dec. 3 to discuss a revised sales tax incentive agreement.
Previously, the developers told the village that the cost of developing the property would be too high for them without the agreement.
The new proposal is for a six -year agreement and is based on $5 million in sales.
The village and the developers would split the first $45,000 of sales tax equally. After $45,000 the developers would receive a percentage of the tax money.
In the first and second years the developers would receive 85 percent of their sales tax money back, not to exceed $25,500. In the third year the developers would receive 80 percent of their sales tax money back, up to $24,000. In the fourth year they would receive 60 percent of their sales tax money back, up to $18,000. In the final two years of the project the developers would receive 30 percent of their sales tax money back, up to $9,000 per year.
The developers sales tax incentive calculates to $246,000 and the village portion of sales tax totals $204,000. At the beginning of the seventh year all sales tax generated from the site would be retained by the village. The rebate will begin Jan. 1, 2015.
The proposed gas station and convenience store would go on the corner of U.S. 150 and Third Street.