Pomona : Tax Rebate for New Store

Smith’s Food and Drug Centers Inc. will build a $12-million grocery and drug store at the northeast corner of Garey and Philadelphia avenues with the help of a $739,000 tax rebate from the city.

Under an agreement approved this week by the City Council, Pomona will pay Smith about $50,000 a year for 20 years or more, until the total reaches $739,000, plus interest. The interest, figured as though Smith had loaned the city $739,000, will be based on the Bank of America prime rate, plus 1.5%, adjustable every six months, with a 12% ceiling.

Although the city redevelopment agency will rebate most of the property-tax revenue generated by the project, the city will gain $140,000 a year in sales taxes and 250 new jobs, said James G. Funk, deputy city administrator. Funk said construction is expected to start within two months and be finished by December.