Littleton staff recommends up-to-$350,000 tax rebate for Chachi’s
The proposal would return half of the restaurant’s sales tax, capped at $350,000 over five years, if City Council approves it.
Published at
Littleton staff recommends a sales-tax rebate of up to $350,000 for Chachi’s Italian-American at 2589 W. Main St. City Council is scheduled to consider the proposal Nov. 17; it has not been approved. The proposed agreement and staff recommendation cover the restaurant’s plans for the long-vacant site.
The deal would return half of the restaurant’s sales tax to the business for up to five years, or until rebates reach the $350,000 cap. Staff estimates the restaurant could generate about $1 million in sales tax over five years. If the full rebate is paid, roughly $650,000 of that estimated revenue would not be rebated. The city would also retain use and property taxes; staff estimates about $55,000 in use tax from building materials.
Staff says the city would pay rebates only as the restaurant earns them. The proposal does not specify the performance standards or repayment terms. Payments would end when the rebate reaches the cap or after five years, whichever comes first.
The owners project a $2.8 million investment, about 50 full- and part-time jobs, and an opening date of Feb. 1, 2027. Those are projections, not requirements in the proposed agreement.