An Unwise Use of Sharebacks

In May of 2013 city council approved an economic development plan. The plan provides for incentive agreements to attract desirable businesses to Littleton. One month after the plan was approved by council, the recently fired city manager, Michael Penny, went before council asking for the approval of a $300,000 incentive package for the already approved Breckenridge Brewery (March 2013.)

The deal was made, the brewery was sold and now Anheuser Busch is the recipient of a sales tax share back agreement. I guess they needed the money more than the City of Littleton even though council is considering asking the taxpayers for more tax dollars in order to maintain our infrastructure.

At the time councilwoman Brinkman said, “This $300,000 investment is not money out of our pockets.  Quite honestly, this is money that hasn’t even come to our pockets.”  She could not be more wrong.  The sales tax shareback is indeed money that belongs to the City.  The City will collect the sales tax and then write a check back to the brewery for their portion of the shareback agreement.

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