The tax deal that would bring a Texas Roadhouse to Zanesville is dead.

Members of the Zanesville City Council elected not to pass an ordinance Monday night that would grant a Tax Increment Financing (TIF) District to a Cincinnati-based developer.

“I guess I will ask the obvious, or maybe not so obvious question, and that is if … if this TIF is voted down tonight, does that immediately kill this deal?,” asked council member Rob Sharrer of developer Matt Daniels.

“Yes, sir,” Daniels answered.

That response solidified Sharrer’s vote.

“I don’t bully well, and that felt like a bully move,” said Sharrer following the meeting.

Minutes later, council unanimously voted to kill the proposed legislation that would grant a 75 percent urban renewal TIF to Meridian Realty Capital, LLC for a period of 15 years.

“There’s no next,” Daniels said while leaving City Hall. “I just had a 100 percent turn down on a vote. That’s why that downtown core is not going to change for a long time.”

According to Daniels, the establishment of a Texas Roadhouse on Zane Street, adjacent to downtown, would have brought more business, including potential for entertainment venues, to the area while growing those already in existence.

“That entertainment would come very quickly,” said Daniels.

Restricted by confidentiality agreements, Daniels could not expand on any specifics regarding entertainment, but gave a couple examples of potential developments including high-end theaters and bowling alleys with bars and restaurants.

Daniels explained before council that the days of malls and big-box developments like those seen on Zanesville’s north end are over.

“The urban core is where all the development needs to come back to, because you lose your urban core, you lose your city,” Daniels told council.

After the meeting, Daniels further explained that young people are more attracted to the urban core.

“So then residential guys come in and build really nice apartments and condos because they can service their people to those things,” said Daniels. “Right now, you have old hotels and old restaurants.”

The idea that downtown could become a destination of choice is one that council member and chair of the Community Development Committee Mark Baker said has been heard for decades.

“We have to take that, I think, with a grain of salt, whether that actually will come into fruition,” said Baker.

Council members, especially those serving on the Community Development Committee, have been weighing their options for some time, including during two special meetings specifically for the proposed project.

Leaving their last meeting less than a week ago still unsure on how to vote, the committee members decided to send the ordinance to council with no recommendation.

“I think it’s kind of obvious that everybody up here would like more businesses to move downtown and to bring economic development to that part of the city, particularly,” Baker told council.

However, Baker said there are still questions as to whether a tax incentive for the developer would be the right move for Zanesville.

First, baker said the TIF District with a 75 percent tax cut for 15 years is simply too high, especially for a site that would offer little to the city in terms of infrastructure or other improvements of the like.

“The flip side of that is that there is going to be some environmental remediation that could count as that, which would certainly make the land desirable and, a, able to establish a business on it,” said Baker. “The only problem is we haven’t actually seen the environmental impact study that has been done by the owner, and we haven’t seen any documentation for that.”

When asked directly about those results, Daniels said he only had access to an older report which indicated plumes may be present on the site, but without indication that the project would move forward, the company couldn’t investigate further.

However, Daniels did say the possible pollution would be eradicated if proved present.

Another concern Baker noted he had regarding the development was the question of fairness to local business owners that did not get their start with tax incentives.

Baker said some of those businesses have struggled for decades to keep their doors open but were also good members of the community that support charitable and civic organizations.

“They’ve been there when the city has needed them, and now to give tax incentives to a business that would come in and perhaps take a piece of that pie and make the piece of pie that each business receives, so to speak, that much smaller, that’s problematic as well,” said Baker.

Council members, both at Monday’s meeting and last week’s community development meeting, have indicated receiving correspondence from local business owners who don’t believe the tax incentive is fair.

Sharrer raised the same question, while also questioning whether the TIF Districts would end with Texas Roadhouse.

“To those of you that argue against the TIF, 75 percent is a big number and 15 years is a long time. We do set precedent for future development,” said Sharrer. “Will the businesses that follow Texas Roadhouse require that same sacrifice for them to relocate or to open up in Zanesville? What about all of the current businesses that did not receive such an incentive, will that put them at an economic disadvantage? Is that fair?”

When Sharrer directed those same questions at the developer, Daniels explained that urban redevelopment projects can’t be financed the way they once were, saying they require community investment.

Outside of council chambers, Daniels said the perception that a big business like Texas Roadhouse would hurt local business is not true.

“That’s thinking from the 80s,” said Daniels. “No, world class retail drives sales for everybody.”

Throughout the night, Daniels continually emphasized that a TIF District is not a tax abatement, meaning Texas Roadhouse would pay 100 percent of their taxes to the city and county.

Council member Andy Roberts challenged those statements.

“You’re saying it’s not an abatement, but my statement has been that it’s an abatement in TIF clothing,” said Roberts.

Further, Roberts explained that even though property taxes will be paid to the county, that money doesn’t end at City Hall or the schools.

“What the city takes in we’re going to turn around, we’re going to write a check back to the developer,” said Sharrer following the meeting.

Daniels clarified upon Roberts’ statement that the taxes would not be returned to Texas Roadhouse, but instead in the hands of bond holders, which, in this case, would be the developer.

Roberts ended by saying he believes tax incentives like the one requested by the developer should be offered for large-scale, industrial type businesses.

Earlier in the meeting, Sharrer said he believes Texas Roadhouse would make money in Zanesville with or without a tax incentive.

“I sincerely, sincerely hope that the outcome of this vote does not determine whether or not you invest in our community,” said Sharrer. “Zanesville would love to see you come to our community.”

Without the TIF District, Daniels said he doesn’t know how else to bring Texas Roadhouse and future development to Zanesville through his company.

“I don’t know how to come at it because, you know, otherwise it’s tax abatement, which is perceived worse, it’s actually not, but it’s perceived worse,” said Daniels.

Daniels said Texas Roadhouse was attracted to the site due to its location along the river and near I-70.

“They loved the idea of being against that river. They had a big patio planned on the river to see it,” said Daniels. “They like the idea of being at the interchange, and they like the idea that more development could happen around it.”

Even if council had voted in favor of the creation of a TIF District for the development of Texas Roadhouse, the final decision would have come down on the Zanesville City School District.