SHAWNEE — Shawnee Marketplace, an $18 million retail development under construction along Interstate 40, will benefit from $5 million in economic incentives from the city and Pottawatomie County in a bid to keep local shoppers from spending their money elsewhere.
“When we lose sales tax dollars to the west, that affects the quality of life for our residents,” said Tim Burg, executive director for the Shawnee Economic Development Foundation. “We’d like to keep some of those sales tax dollars at home.”
Architectural elevations for the project show national retailers including Hobby Lobby, PetSmart, Ulta and Staples as tenants in the new development, which is being built on the southwest corner of Interstate 40 and Kickapoo Street in Shawnee.
Shawnee Marketplace will generate an annual economic impact of $35 million in retail sales in Shawnee, and create about 500 new retail jobs in the first five years, according to a study commissioned by the Shawnee Economic Development Foundation. The study estimated the development will generate an estimated $900,000 in new, annual sales tax revenue for Shawnee.
The City of Shawnee has inked a sales tax rebate deal with Dallas-based developer Hunt Properties Inc. to help offset development costs from Shawnee Marketplace.
Hunt will recoup up to $3.75 million in new sales tax revenue from the city generated by retailers in Shawnee Marketplace as part of the deal. Hunt has struck a similar deal for economic development incentives with Pottawatomie County for up to $1.25 million that will help to offset construction costs.
“City and county incentives were vital to making the project financially feasible,” Hunt Properties President Jeff Williams said.
Construction began last week on the first, 150,000-square-foot phase of Shawnee Marketplace, and the first retailers are expected to open in spring 2015, Williams said.