Dick’s Sporting Goods deal approvedPublished 8:36pm Monday, May 6, 2013
By NEAL WAGNER / City Editor
A new Dick’s Sporting Goods store is “100 percent coming” to Alabaster’s South Promenade shopping center, and is looking to open before Christmas 2013, according to state Sen. Cam Ward, R-Alabaster.
“(Dick’s) has accepted the deal, so everything is ready to go,” Ward said after a May 6 Alabaster City Council meeting, during which the council unanimously passed an incentives package for the sporting goods retailer. “(City Attorney) Jeff (Brumlow) and I just have to take it to court to get everything verified. That just makes sure all of the legal bases are covered.”
During the meeting, the City Council agreed to an incentives package totaling up to more than $1.9 million to attract the about 50,000-square-foot building, which will be constructed next to Alabaster’s Target store.
The developer also is looking to bring an outparcel business to the currently vacant lot between the McDonald’s and O’Charley’s restaurants.
The incentive package is tied to the city’s sales tax, and uses a tiered system over a 10-year period.
Alabaster currently charges a 4 percent city sales tax, with 1 percent going to the city’s school fund to support the upcoming Alabaster school district. The incentive package will only apply to 3 percent of the city’s sales tax collected at Dick’s and any outparcel development built between McDonald’s and O’Charley’s, leaving the 1 percent earmarked for the school fund intact.
Alabaster will reimburse the developer for 90 percent of the 3 percent city sales tax collected at Dick’s and the outparcel development during the first year the Dick’s store is open.
The city will keep 5 percent more of the sales tax revenue collected at Dick’s and the possible outparcel development each year through the 10th year the Dick’s store is in operation.
The total maximum value of the incentive package is capped at a little more than $1.9 million. If the cap is reached in fewer than 10 years, the incentive deal will end. If the cap is not reached in 10 years, the incentive deal will still end.
“The city of Alabaster puts up no money up front, which is a good thing,” Ward said. “It’s a win-win.”
Because the land the Dick’s store will be on was owned by Target, it took “much negotiation” to finalize the deal to bring the sporting goods store to Alabaster, Ward said, noting the store will be a “large sales tax generator” for the city.
“This is the first time Target has ever done this,” said project developer Bill Leitner. “This will be the one and only Dick’s store under construction in Alabama in 2013. It’s hopefully going to be a great success.”