Map courtesy of city of Hoover
This is the first phase of the Stadium Trace Village development off John Hawkins Parkway between Interstate 459 and Stadium Trace Parkway.
The Hoover City Council on Monday is slated to consider whether to give the developer of Stadium Trace Village a four-year extension on a tax rebate incentive for the first phase of the development and allow him to recoup $25 million 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 is asking for four more years and the ability to recapture an extra $5 million in sales tax rebates.
Just two weeks ago, on July 13, the City Council voted unanimously to approve a $23 million economic incentive package for the second and third phases of Stadium Trace Village. That incentive package included giving Broad Metro a $4 million upfront payment to help 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 approved July 13 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.
See the full agenda and supporting documents for Monday’s Hoover City Council meeting here.
