HB Enterprises, LLC, an Arizona Limited Liability Company, doing business as Potato Barn, a family-owned furniture store, has selected Goodyear for the location of their first West Valley store. Staff is recommending the adoption of a Resolution and approval of a Job Creation Agreement with HB Enterprises, LLC.

ADOPT RESOLUTION NO. 2022-2243 AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO EXECUTE THE JOB CREATION AGREEMENT BETWEEN THE CITY OF GOODYEAR AND HB ENTERPRISES, LLC, AN ARIZONA CORPORATION PROVIDING FOR THE CITY MANAGER OR HER DESIGNEE TO EXECUTE THE JOB CREATION AGREEMENT. (Lori Gary, Economic Development Director)

The city proposes to waive/reimburse 100% of plan review and permit fees, including the expedited portion of plan review fees up to a maximum of $132,951.15. The city further proposes to fund 100% of development impact fees for the Goodyear facility up to $492,916.25. If approved, the $492,916.25 will be funded from the FY2022 Economic Development Opportunity Fund budget. Plan review and permits fees of the amount paid to date will be reimbursed and the remainder will be waived.

Estimated Direct Revenue to the City: $2,413,408.00
Maximum waived, reimbursed, and funded from City: $625,867.40

Potato Barn, is a family-owned Arizona furniture store featuring unique collections and one-of-a-kind pieces imported from around the world. Potato Barn’s corporate headquarters is located in Mesa, Arizona. The company currently operates stores in Mesa, Chandler, and Scottsdale. The Goodyear location will be the first Potato Barn store in the West Valley.

Potato Barn has purchased 7.97 acres in Goodyear and plans to open a 100,000 square foot retail facility. Potato Barn will soon begin construction of the Goodyear facility and anticipates it will receive a final or temporary Certificate of Occupancy by the late 2022 or early 2023 and, within three (3) years of the Effective Date of this Agreement, Potato Barn will have invested, or will cause to have been invested a minimum of $15,300,000 in acquisition and improving the property, constructing the building, and equipping the property for the Goodyear Facility.

There were no previous items that went to Council related to this agreement.

Potato Barn has identified the city as its preferred location for its first store in the West Valley that will accommodate its immediate and long-term expansion plans and otherwise meet its business needs, and will construct a 100,000 square foot building generally located west of the southwest corner of W. McDowell Road and N. Pebble Creek Parkway in Goodyear, Arizona.

Benefits to the community of Potato Barn in Goodyear over the course of five (5) years include:
 

• Creating up to 45 full-time jobs in Goodyear
• Full-time employees will be paid a cumulative average wage of at least $22.78 an hour
• Total investment is expected to be at least $15.3 million in purchasing property and constructing a new 100,000 square foot building and equipping the facility.
• Significant economic impact including tax revenues from operations, its employees, vendors, service providers, etc.

 
Staff supports the development agreement and recommends its approval.