Alabaster delays closing date for Dick’s Sporting GoodsPublished 1:18pm Tuesday, July 2, 2013
By NEAL WAGNER / City Editor
The developer of a proposed new Dick’s Sporting Goods store in Alabaster now has until Sept. 1 to approve its agreement with the city after the City Council agreed to extend the deadline during its July 1 meeting.
Highway 11/31 II, the project’s developer, originally had through July 1 to finalize the agreement with Alabaster, but requested more time from the city to acquire property for the development.
“This gives them an opportunity to get financing and get everything closed,” said Ward 4 Councilman Rick Walters.
In May, the Alabaster City Council approved an incentive package for the development, which could total up to about $1.9 million over the next 10 years.
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.
If Highway 31/11 II does not move forward with the project by Sept. 1, the incentives package will be nullified.