On August 10, the Hoover City Council gave the green light to a tax‑rebate incentive that will return up to $1.9 million in sales‑tax revenue to the developer of the former Big Lots building at Riverchase Crossing. The agreement, which runs for ten years, promises the developer 50% of the sales tax collected from two new tenants – HomeSense and Shoe Dept. – until the cap is reached, which the developer expects to happen by year seven.
Project details and investment
The Tennessee‑based firm, NRE Riverchase, plans to pour almost $10.5 million into the 5.1‑acre parcel at the east end of the shopping center. Of that amount, $8.8 million will cover land acquisition and building renovations, while $1.7 million is earmarked for “soft costs” such as professional services, permits, taxes and fees, according to Hoover Economic Development Director Ken Grimes.
The 37,793‑square‑foot former Big Lots space will be split into two separate stores: a 27,278‑square‑foot HomeSense outlet and a 10,515‑square‑foot Shoe Dept. location. HomeSense, an affiliate of T.J. Maxx, will be the first of its kind in Alabama, offering discounted home furnishings and décor. Shoe Dept. will be the first Shoe Dept. store in Hoover.
Why the rebate matters to Hoover
Grimes emphasized that the rebate is a win for the city because it helps fill one of Hoover’s oldest shopping centers with new, recognizable brands, revitalizing a space that has been vacant since Big Lots closed in February 2025. The vacant space generated no tax revenue for the city during its downtime.
Visitor traffic at Riverchase Crossing has already shown a strong upward trend, climbing from 812,778 visitors in 2024 to 1.2 million in 2025, and surpassing 1.5 million over the most recent twelve‑month period, according to Grimes.
Context of past redevelopment efforts
This isn’t the first time Hoover has used tax incentives to spur redevelopment. In a previous council decision, a Georgia developer received up to $1.7 million in rebates to revitalize the former Bed, Bath & Beyond site at the same shopping center. That project split the 38,000‑square‑foot space into a Trader Joe’s (16,000 sq ft) and a Sierra store (22,000 sq ft), with the developer investing more than $11 million in renovations.
The current incentive follows the same logic: by sharing a portion of future sales‑tax proceeds, the city reduces the developer’s upfront financial risk, encouraging private investment that creates jobs, expands the tax base, and enhances the shopping experience for residents.
Looking ahead
While the rebate applies only to the two new tenants, the broader impact is expected to ripple through the surrounding businesses, including the existing Napa Auto Parts store and other retailers on the east side of Riverchase Crossing. The council’s decision reflects Hoover’s ongoing commitment to proactive economic development, leveraging targeted incentives to attract national brands and keep the city’s commercial corridors vibrant.
Residents can anticipate the new HomeSense and Shoe Dept. stores opening later this year, further diversifying retail options and reinforcing Hoover’s reputation as a thriving suburban market.
Original reporting: Hoover Sun — read the source article.
