Alabaster discussing Ulta incentives Feb. 23
By NEAL WAGNER / Managing Editor
ALABASTER – Alabaster residents will have a chance to voice their opinions on an incentives package to draw a high-end beauty supply store to the South Promenade shopping center during a Feb. 23 City Council meeting.
During its Jan. 27 meeting, the City Council announced it will hold a public hearing on the proposed incentives package during its Feb. 23 meeting, which will begin at 7 p.m. at Alabaster City Hall.
During the public hearing, the council will accept feedback on an incentives package to bring an Ulta Beauty store to the city’s South Promenade shopping center.
Ulta Beauty, which currently has stores in Hoover’s Patton Creek shopping center, off U.S. 280 in Brook Highland and in Tuscaloosa, is preparing to open a location in the former maurices location between Dicks Sporting Goods and Best Buy.
The Highway 31/11 LLC development company, which owns the Dicks Sporting Goods property, also owns the former maurices property. The developer is preparing to expand the existing building on the property “by about two-and-a-half times,” making it a 70-foot-wide by 145-foot-deep building, Henry said.
Through the proposed incentives package, Highway 31/11 LLC will receive a rebate on a portion of the sales taxes Ulta generates over $15,000 per year for the first five years the store is open.
Based on average yearly sales tax submissions for similar stores in the area, and because the Ulta store will be considered a redevelopment, the developer will not receive any tax rebates on the first $15,000 in sales taxes Ulta generates each year.
After Alabaster receives $15,000 in sales taxes from the store each year, the developer will be rebated 90 percent of sales taxes the store generates in its first three years, 80 percent in the store’s fourth year and 75 percent in the store’s fifth year up to a total value of $516,000.
The Ulta store is predicted to generate about $120,000 in sales taxes per year.
If Ulta or a similar-sized business does not occupy the building for at least 10 years, Highway 31/11 LLC will be required to repay all sales tax rebates.