Town attorney to review Howdy contract
Hennessey’s Board of Trustees wants to go forward on a contract with Howdy Truck Stop’s 24-hour plaza planned on the north U.S. 81 curve, but tabled it so the town’s attorney can review it.
Board members received copies of the eight-page economics development contract at their Thursday night meeting. All agreed to have a special meeting to approve the contract as soon as possible.
Town Administrator Tiffany Tillman told the board she’d only received the contract at 3 p.m. that afternoon.
“The owner needs this in writing for his banker,” she said.
Howdy plans to pay an estimated $509,000 to have water and sewer lines run to their planned location, the document shows. The property is inside the town limits, but the town doesn’t have funds to pay for the extended lines. The town will pay Howdy each quarter for the town’s four percent sales tax that the new business generates.
“It will take the town about four or five years to pay it off,” Tillman said.
The eight-page contract states that copies of Howdy’s monthly sals tax report will be provided to the town. Tillman said the company will give the town their sales tax passwords so they may confirm their numbers.
Howdy plans to build a 24- hour travel plaza to be located north of S.H. 51 on the west side of U.S. 81. The plaza will “provide food and fuel sales for automobiles and truck trailers plus ancillary services including a trucker’s lounge, shower and laundry,” the contract states.
The contract also shows: “Howdy will maintain commercial general liability insurance during the construction of the pipeline construction (naming Town and Authority as ‘additional insureds’) to include occurrence and at least $2 million aggregate for damages caused by the negligence of Howdy’s officers, agents, employees and representatives.”
The agreement expires Dec. 31, 2024 “if Howdy fails to spend at least $250,000 on the pipeline extension.”
“What if they go out of business?” asked Trustee David Jones, who was elected to the board last month, and was given the oath of office at the start of the meeting.
“Good question,” said Mayor Bert Gritz, who said he wouldn’t be able to make a special meeting the coming week, but the board has his go-ahead on the contract if they meet then.
All members of the board were present: Vice Mayor Clif Vogt, Trustees Richard Simunek, Harold Shaw, Jones and Gritz.
Town Clerk Kati Walters served as minutes clerk, and also present was Treasurer Shelley Burch, who is also a town hall clerk. Other staff at the meeting were Acting Police Chief Aaron Pitts and Wastewater Superintendent Bryan Burch.