City and Love’s Travel Stop agree to 5-year sales tax rebate
The City of Guthrie and Love’s Travel Stops & Country Stores, Inc. have agreed to a sales tax rebate pertaining to the construction of a sewer line that will run underneath I-35 for the new Love’s facility near Highway 33.
Love’s will fund the construction and extend the sewer line from their current store’s location on the west side of I-35 to the new facility on the east side. In return, the City will provided rebate funding for a portion of the infrastructure extension.
According to City officials, the agreement provides a sales tax rebate of no more than $150,000 over a span of five years through sales tax deposited solely by Love’s . The contract further says no more than $30,000 would be rebated over a span of one year.
Love’s is projected to generate $500,000 over five years. With the projection, the rebate is estimated at 17 percent on revenues.
In addition, the agreement allows for the development of a pro-rata agreement to anyone seeking to tap the sewer line installed by Love’s can do so by agreeing to a tap fee of no more than $100,000. The tap fee will be transferred to Love’s for their initial construction of the line. However, if the City opts to tap into the line they would be exempt from any of the tap fees.