The city will be writing the first check to Shoney’s as part of an agreement that helped get the restaurant to town.
At a special meeting Wednesday afternoon, council members approved a $21,438.23 payment to Shoney’s. It reflects 2.5 percent of the sales at the restaurant for the first and second quarter of the year.
Restaurant owner Dog Wadley had approached the Henryetta Economic Development Authority a year ago asking for the rebate for a five-year period. A $200,000 cap was put on the rebate amount.
That payment was not without controversy.
The council first had to agree that the funds would be based on all taxable sales. A dispute arose because, according to mayor Jennifer Clason, the contract was, “vague” and an attorney’s opinion was needed to clarify it. At issue was whether or not the city should be paying the rebate based on the total of 9.5 percent sales tax paid to the state or the 4.75 that is returned to the city.
“This is all new ground,” Clason said. “In the future we need to have legal council review all contracts.”
She said this is the first time that such an incentive has been paid to a business to open in Henryetta, pointing out such incentives are commonplace across the state. “You have to get them (businesses) a tax incentive to open.”
Council member Bill Goodner was opposed to the idea of payments based on the total taxes collected.
He pointed out that a number of businesses have opened in Henryetta in the recent past but none have been paid any rebates.
Shannon Scott said those businesses should have approached the city for such a break. He said failing to offer incentives to recruit business has been, “the way the council thought for 30 to 40 years. That’s why we don’t have a Walmart distribution center.”
The council voted 4-1 in favor of allowing Shoney’s to get the rebate based on all taxable sales. Goodner cast the dissenting vote.
In the next item of business, approving the $21,000 payment to Shoney’s the council supported it unanimously.
Payment of $29,783 was approved to Doty Concrete Construction for fencing at the firing range at Nichols Park.
That fence was necessary to prevent accidental incursion into the range by ATV riders on their way to the off-road park. “It meets the requirements for our insurance,” Clason said.