The Hoover City Council is set to vote on a $28 million economic incentive package for the second and third phases of the Stadium Trace Village development. The development, located at the intersection of Interstate 459 and John Hawkins Parkway, is being led by Broad Metro development company.

Incentive Package Details

According to City Manager Brian Muenger, the incentive package includes up to $23 million in incentives tied directly to the 147 acres yet to be developed in phases two and three. The developer, William Kadish of Broad Metro, is also seeking to expand the amount of tax rebates he received for phase one from $20 million to $25 million and to give him an extra four years beyond his existing agreement to capture that extra $5 million.

The only upfront cash outlay the developer is seeking is a $4 million payment to help with stormwater improvements that will help solve a problem of sediment erosion into nearby Scout Lake. The rest of the proposed incentives involve tax rebates, including 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. 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.

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. 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.

Original reporting: Hoover Sun — read the source article.