I don't like the Domain incentives, either. I don't like subsidies for retail. (But then I don't like subsidies for manufacturing plants or call centers or corporate offices, either.)
True, the city needs to maintain its tax base. But rebating the taxes from a new development is a piss-poor strategy for maintaining the tax base. Besides being self-defeating, it forces the rest of us to pay (even if just slightly) higher taxes, potentially displaces other prospective retailers, and encourages prospective retailers to engage in rent-seeking.