City prepares to receive Old Stoney recapture

The City of Sundance is set to receive a financial boon from Old Stoney in return for its help to manage and sponsor the grant that made possible the first phase of the renovation.

With the basement and main floor now done, said Clerk Treasurer Kathy Lenz, the Old Stoney Committee is currently looking into funding avenues for the final phase, which would see the auditorium on the top floor rejuvenated.

In the meantime, she said, “They also have an obligation to the city for a recapture plan.”

The recapture plan was built into the structure of the Wyoming Business Council grant. The city would administer the grant and, in return, would benefit from a recapture agreement that was set at $10,000 per year for the first three years the building creates revenue.

“They had three years to start making money, but they gave them a grace period because of COVID-19. On the third year, their net revenue was predicted to be $10,000,” said Lenz.

“I have watched their revenue and their books and they have not met that revenue yet this year, but when they do, that 25% recapture comes back to the city and that goes into your economic development fund.”

The grant is almost identical in structure to the one that the city completed with Croell Redi-Mix for its new headquarters. In that case, the city sponsored the infrastructure grant with the Wyoming Business Council because a business was unable to apply alone; though Sundance paid no money into the project, staff at City Hall did help to manage the grant.

“That’s fairly standard,” commented Mayor Paul Brooks, reminding the council that the city received a chunk of land from Croell Redi-Mix when it sponsored the company’s grant for infrastructure associated with its new headquarters within the city and the surrounding industrial park.