Scooter Store owes money to City of New Braunfels

City demands $1.3 million in incentives be repaid

Author: Tim Gerber , Reporter,
Published On: Feb 21 2013 06:14:22 PM CST   Updated On: Feb 21 2013 06:39:29 PM CST

One day after being raided by federal and state investigators, workers returned to The Scooter Store in New Braunfels Thursday.

As the federal government investigates possible Medicare fraud, the city of New  Braunfels is trying to get the company to repay them more than $1 million in incentives tied to jobs.

Back in 2009, the Scooter Store went to city leaders seeking incentives. The company was ready to expand its headquarters and add hundreds of new jobs. The city agreed to give the company $3.4 million but they didn't get what they paid for.

"Last Friday, we did issue a demand letter for $1.3 million to be repaid by the Scooter Store," said Bob Gray, vice president of the New Braunfels Industrial Development Corporation.

Gray said in the Spring of 2009, the 4B Board agreed to give the Scooter store $3.4 million in incentives based on the company's plans to hire 500 new workers. 

The Scooter Store never hit the 500 mark, they only created 401 and new jobs.

Last summer, Gray said the city learned through informal audits that the company wasn't creating more jobs and in fact they were cutting jobs throughout the corporation.

Now the city wants to reclaim $1.3 million from the company.

Gray said the city is not trying to collect the full amount because the company did create some jobs and some of the money was spent on telecommunications and electrical infrastructure that is benefiting the community.

While the city understands the company has its hands full with the federal investigation, they still want their money.

"We will pursue and hope to reclaim that money, but at the same time, they are one of our largest employers in town, and we would like to work with them through this process," Gray said.

Scooter Store representatives were scheduled to attend a meeting of the 4B Board Thursday night to give them an update on the company and its plans to repay the incentive money, but after Wednesday's raid, they canceled. 

No new date has been set for the company to address the board members.

For a list of recent stories Tim Gerber has done, click here.