The Copperas Cove Economic Development Corporation boards approved giving Bill French Jewellers $12,000 for expanding its facility.
The city benefits by entering into such a deal, said Polo Enriquez, Cove EDC’s executive director.
Because of the jewelry store’s operations area expanding, the Copperas Cove Economic Development Corporation expects the city to experience larger property and sales tax gains.
While renovations have already taken place at a cost of about $145,000, the EDC contract is a way of helping the business offset some of those costs.
According to the contract, Bill French Jewellers will receive $12,000 during a three year period for more than $100,000 of renovations to the building it owns and operates and $45,000 it spent to improve store equipment.
About $24,000 of the sites renovations, are expenditures for which Cove EDC can appropriate funds, EDC documents stated.
Those expenditures are for infrastructure improvements that promote or develop new and or expanded business enterprises, such as street and road, water and sewer utility, electric and gas utility and site improvements, states the contract.
Site improvements to stores must include 1,200 additional square feet to retail areas and 600 square feet to backroom operations. Twelve parking spaces were also built at Bill French Jewelers.
For receiving the funds, Bill French Jewelers has to maintain at least two fulltime and two part-time employees, states the contract. The store must also increase collected sales tax by 10, 20 and 25 percent during the first-third years of the agreement.
“It is the exact same formula we used for Black Meg,” Enriquez said. “It focuses on new employees and new inventory that can be taxed.”
Black Meg received similar funding from the EDC after its lease space was bought by CVS in late 2012 and the local restaurant change was forced to move their flagship site.
The hamburger eatery was approved for about $40,000 based on improvements to its newer location. However, it collected a smaller amount because of changes to Black Meg’s floor plan after it moved to the new facility.