Photo courtesy of Hoover Beautif
Stadium Trace Village
The Hoover City Council on Monday night unanimously approved a four-year extension on a tax rebate incentive for the first phase of Stadium Trace Village that allows the developer to recoup $25 million in sales tax rebates instead of $20 million.
The City Council originally gave the Broad Metro development company 10 years to recoup $20 million in sales tax rebates for the first phase of the development but in 2021 extended the time period to 15 years to give the company more time to max out its rebate potential.
Now, developer Will Kadish was asking for four more years and the ability to recapture an extra $5 million in sales tax rebates, and the council agreed.
Council President Casey Middlebrooks said it will take an inordinate amount of resources for the developer to develop the second and third phases of Stadium Trace Village due to the topography and old coal mine shafts underground.
But because phases two and three will be less retail-oriented than phase one, it made sense to help the developer recoup some of those costs by letting him use more sales tax proceeds from phase one, Middlebrooks said.
The developer could have put more retail in phases two and three but is trying to work cooperatively with city leaders to fulfill their vision for more entertainment and health care amenities for the city, Middlebrooks said.
“I think that’s a smart move to have less retail and have more quality-of-life items in phases two and three,” he said.
City Administrator Brian Muenger said the city has reworked tax incentive agreements with other developers in the past, including developers of the Riverchase Galleria and Patton Creek shopping centers, so there is precedence for revisiting and revising such agreements.
The City Council on July 13 approved a separate agreement that included $23 million in economic incentives for the second and third phases of Stadium Trace Village, so this puts the total value of new incentives approved this year at $28 million.
The incentive package approved two weeks ago included giving Broad Metro a $4 million upfront payment to help developer William Kadish pay for stormwater improvements that will help solve a problem of sediment erosion into nearby Scout Lake, plus up to $19 million in breaks related to sales and lodging taxes and construction permit fees.
The tax breaks included a rebate of 60% of sales taxes received from new development in phases two and three, 75% of lodging taxes from phases two and three and 75% of construction-related sales taxes and construction permit fees.
The city should be able to recapture the $4 million upfront cash outlay by the fifth year, and the total amount of revenue the city should receive from the development over 20 years is $27.1 million, City Administrator Brian Muenger said. After 13 years, the city should expect to get 100% of sales and lodging tax revenues, which should amount to about $1.9 million a year, Muenger said.
Additionally, Hoover City Schools should get $24.6 million in new property taxes over 20 years because the value of the land will increase dramatically with all the site improvements and development, Muenger said. And the combined amount of revenue going to all governments (the city, Jefferson County, state and Hoover schools) is projected to be $63.8 million over 20 years.
The extra four years and $5 million related to phase one of Stadium Trace Village initially was considered part of the package to be voted on July 13, but there was an error in advertising that portion of the incentive package, so the council delayed a vote on the phase one extension for two more weeks.
In other business Monday, the City Council:
- Appointed Don Lilly to the Hoover Health Care Authority. Lilly retired in April 2024 as the chief network and affiliate officer for the UAB Health System.
- Approved several changes to the 2026 budget, including adding $200,000 for additional fuel, $100,000 for additional fleet repair and maintenance and $100,000 for 100 automated external defibrillators for the Hoover Police Department
- Agreed to pay $1.8 million to Mastin’s for replacement of generators at the Riverchase and Inverness wastewater treatment plants
- Approved a $30,278 increase in the price paid for the new Fire Station No. 1 in Green Valley, putting the total price at $5,279,678. Changes in the contract actually increased the price higher than that, but the construction company had to pay $88,500 in liquidated damages back to the city because the project was so late in getting completed, records show.
- Agreed to pay a one-time bonus to retired city employees totaling $143,318
- Agreed to be a part of Shelby County’s community development block grant program for urban counties
- Authorized the mayor to terminate the city’s relationship with USI Insurance Services and negotiate an agreement with Randy Jones and Associates to serve as the city’s insurance broker
- Agreed to pay $39,079 to Motorola Solutions to replace the city’s public safety camera equipment and maintain it over the next five years
- Accepted a $4,000 grant from the Jefferson County Community Service Fund to upgrade the landscaping and signage at the entrance to Aldridge Gardens. This is money from the state Legislature designated for Aldridge Gardens by state Rep. Mike Shaw.
- Agreed to dispose of at least 25 vehicles and other equipment deemed no longer needed by the city
- Agreed to hire JRH Inc. to do weed abatement work for the city, cutting weeds and overgrown vegetation on private property and then filing a lien against the property owners to recoup the costs
- Agreed to share geographic information system data with Central Alabama Water so that both agencies can maintain the most accurate records possible
- Agreed to accept ownership of a stormwater drainage easement on the Riverchase Village shopping center property after confirming that stormwater system repairs had been properly completed on the property
- Approved an agreement with Regions to increase the city’s commercial credit card limit from $70,000 to $120,000
- Approved an agreement with Hoover Mall Limited for the city’s 9/11 Remembrance Ceremony held at the Riverchase Galleria
- Agreed to annex a single-family residential property at 1904 Mayflower Drive
- Declared properties at 237 Russet Woods Drive, 2152 Larchmont Drive and 3469 Birchtree Drive as public nuisances due to high weeds and/or grass
- Declared property at 547 Turtle Creek Drive a public nuisance due to excessive storage of items outside the residence in the yard
