Hoover approves tax abatements for McLeod headquarters expansion
Published 2:23 pm Tuesday, August 8, 2023
By DONALD MOTTERN | Staff Writer
HOOVER – The Hoover City Council approved the provision of tax abatements that will result in the expansion of the McLeod Software Corporate Headquarters in Hoover, through a resolution passed on Monday, Aug. 7.
The resolution grants tax abatements to Software Guys 2.0 LLC, a McLeod affiliated corporation and will allow them, and McLeod, to grow their operations and proceed with a renovation of the five-story Meadowbrook 300 Building that will expand McLeod Software’s corporate headquarters.
“Our company has grown 400 percent over the last decade, while we have increased the level of investment in our products and people proportional to that growth,” President & CEO of McLeod Software Tom McLeod said. “Moving into our Hoover-based headquarters in 2018 gave us the opportunity to consolidate our operations and expand our staff in a great location that has helped us on both the recruiting and retention front. We are now in a position to expand on the same campus, a big advantage for us over the next few years as we grow into this new building.”
The 101,527 square-foot building has sat empty since 2012, but will now see McLeod Software serve as the primary tenant with additional space possibly available to other technology companies.
“We hope to attract some additional tenants, some additional businesses, into the Hoover area,” McLeod said. “And then over time, likely the next five years, grow into that facility as well. It’s in great shape, although it’s been empty, but it was built over thirty years ago. So, we’re going to have to invest substantially in rewiring for modern computer systems and refurbishing in a number of areas.”
The expansion will produce an estimated increase of 150 employees working daily in the area, all while McLeod will continue to occupy its current space at the adjacent Meadowbrook 100 Building. This move is yet another step in-line with Hoover’s knowledge-based economics development efforts.
“I am very pleased that McLeod has doubled down on their commitment to Hoover and our growing innovation ecosystem,” Mayor Frank Brocato said. “This project is another example of growth in Hoover’s STEM (Science, technology, engineering and mathematics)-based industries. I am also pleased that this public/private partnership will allow for the redevelopment of an existing empty office building and bring more high-earning daytime workers to Hoover.”
An industry leader in the realms of logistics technology and management, McLeod has held its national headquarters in the Meadowbrook 100 Building for more than five years and currently has more than 650 employees.
The abatement, made possible by the Tax Incentive Reform Act of 1992, contains portions of city, county and state sales use and property taxes that are not educational in nature.
The total estimated value of all abatements (non-educational city, county and state taxes) to Software Guys 2.0 LLC is $935,290.