Burnham County Market Development Agreement Concluded

In 2006, the City Council approved a development agreement with Neimann Foods for development of the grocery store space associated with the Burnham Redevelopment project.  The agreement provided for the reimbursement of local sales and food and beverage taxes for a period of 5 years beginning from the date of operation or up to $715,000, whichever occurred first.  This capped amount of reimbursement was determined based upon the annual total sales projections and the associated sales tax generation over a 5 year period, or $143,000/year.

This store opened for business on February 19, 2009, making the agreement termination date February 19, 2014.  Over the years, sales and taxes generated at this location have slightly exceeded the original projections.  In October 2013, the total maximum reimbursement amount of $715,000 was achieved, approximately 4 months ahead of schedule.  The City’s last payment pursuant to the agreement will be made on January 30, 2014.