BUDA, Texas (STPNS) -- Cabela?s sporting goods store has returned $87,500 to Buda and Hays County after falling short of job creation targets laid out in the local contract that helped entice the Nebraska retailer to town.

For the second year in a row, Cabela?s also reimbursed the state of Texas for not achieving employment targets in a separate state contract.

In 2005, Cabela?s opened the 185,000 square foot store at the intersection of IH-35 and Main Street with financial help from the city, county and state.



Both Hays County and the City of Buda participated in a tax increment financing zone (TIF) in which they would forfeit for 20 years the incremental property tax, or difference in assessed tax between the cow pasture and finished store.

Buda also committed 56 percent of its one-cent sales tax collected within the development zone for 25 years, and the county offered one-third of its half-cent sales tax to be capped at $4 million. Buda?s Economic Development Corporation (EDC) pitched in 85 percent of its half-cent tax.

In return, under the terms of the city contract Cabela?s agrees to maintain 225 ?full-time equivalent? positions, or repay $5,000 for each job shy of the target.

When the numbers were compiled this January, Cabela?s had 207.5 full-time equivalent employees, 17.5 short of the target. After the city determined the repayment breakdown between city, county and EDC, Cabela?s returned the funds last week.

Based on participation in the TIF, Buda received about 45 percent of the repayment, the EDC took back 33 percent and Hays County got 22 percent.

In the state contract, Cabela?s agreed to maintain 400 full-time employees between the Buda and Fort Worth stores, with no allowances made for part-timers.  

At the start of 2006, Cabela?s was docked $28,552 of the initial $400,000 development grant from the Texas Enterprise Fund for being 86 employees short of target during 2005. Cabela?s also forfeited $200,000 it could have received by exceeding contract terms through 2008.

This year, the retailer was down 126 jobs and returned $41,000 for the 2006 period, a spokesperson from the governor?s office said.  

The Enterprise program, created by the legislature in 2003, offers grants to companies based in part on how many jobs they?ll bring to the state. Contracts include financial ?clawback? clauses if the companies don?t live up to their part of the bargain.

?That?s how incentives work,? said EDC Executive Director Warren Ketteman. ?Incentives are a two-way street.?

Cabela?s issued its initial public offering (IPO) in 2004, during the midst of contract negations with the city and state.