Hoover council extends timeline for Stadium Trace Village tax rebates

The Hoover City Council tonight agreed to extend the time period for the developer of Stadium Trace Village to recoup sales tax rebates from 10 years to 15 years.

This will increase the likelihood that the developer will be able to recoup the maximum amount of sales tax rebates allowed by the agreement, which is $20 million, said Greg Knighton, Hoover’s economic developer.

Under the current tax rebate agreement, the developer likely would not recoup the full $20 million, Knighton said. With this extension, the developer likely will recover the full $20 million in 12-13 years, according to his projections, or right around year 15, according to city projections, Knighton said.

In turn, the developer plans to spend another $6.5 million on infrastructure improvements at Stadium Trace Village, said Pat Lynch, a representative for the Broad Metro development company. This rebate extension should help Broad Metro go to the bond market and leverage capital to complete those Village Green improvements, City Administrator Allan Rice said.

Also, the city attached several conditions to the amendment of the rebate agreement. The developer will have to:

• Move all the utilities necessary for construction of the amphitheater in the Village Green entertainment center that is planned
• Create 200 additional parking spaces in Stadium Trace Village to accommodate crowds expected for the amphitheater and entertainment district
• Provide a graded site ready for construction of the amphitheater, with utilities extended to it
• Set aside at least one parcel in Stadium Trace Village for a hotel

City officials believe an on-site hotel is important for the success of the Stadium Trace Village entertainment district and amphitheater so people can be within walking distance of a hotel when they attend events there, Rice said.

It’s also significant that Broad Metro developer Will Kadish is willing to give up the opportunity to put a sales tax-producing business on the property because he will not get any rebate on lodging taxes, Rice said. Nevertheless, the developer recognizes the benefit of having a hotel on the site, he said.

Hoover Councilman Mike Shaw said some people have had issues with incentive agreements in the past, but he thinks everybody is pleased with this one. He said it’s a great example of what a developer can bring to the city.

Council President John Lyda said it’s easy to look at incentive agreements and say that’s a lot of money for the city to provide as a rebate, but he looks at incentive agreements such as this very much like a company paying its top sales people a lot of money.

“We want Broad Metro to max out on this incentive agreement,” Lyda said. “When they are maxing out, the city of Hoover is maxing out.”

Lyda said he appreciates any private entity coming to the city with innovative ideas that bring the community amenities it doesn’t have today.

Wes Keith, a partner in the company that plans to run the Village Green entertainment hub, said the 2.5-acre complex is scheduled to include an outdoor amphitheater that can accommodate 1,200 people comfortably, an artisan market, art gallery with space for working artists, wine tasting room, food and beverage vendors, playground and outdoor game area, and studio room for classes such as yoga, pilates and martial arts.

The Village Green will be divided into two main parts: the green (for the amphitheater) and the village (for everything else).

The amphitheater, which should take up about 1.5 acres, is being designed to accommodate everything from intimate concerts from national touring artists and local groups to other performing arts, movie showings, sports viewings (on a big video screen), corporate events, group and family gatherings, weddings and parties.

Read more about the Village Green here.

Councilman Curt Posey, the council’s liaison to the Hoover Arts Council, said the council is very excited about what the Village Green will do for the arts in Hoover.

In other business tonight, the City Council:

• Approved a resolution to support the federal government’s potential expansion of programs at the National Computer Forensics Institute. The expansion being considered would require another 50,000 square feet, Rice said.
• Approved a resolution authorizing the mayor to use city assets for commercial filming purposes. Rice said several private film companies have expressed interest in filming on certain city properties and/or using city property, such as a police vehicle, in a movie scene. This agreement would allow that to happen, with the city being paid for such usage of city property.
• Approved a license for Plenty of Vino to sell alcoholic beverages at 1650 Montgomery Highway.
• Agreed to pay Screenworks $22,000 to rent a truck-mounted LED video screen.
• Agreed to pay Bound Tree Medical $102,468 for medical supplies for the Hoover Fire Department
• Authorized Mayor Frank Brocato to serve as the city’s voting delegate at the Alabama League of Municipalities annual business meeting
• Combined two part-time positions at Aldridge Gardens into one full-time position
• Declared a house at 4547 Highland Crest Circle as a public nuisance to high weeds and/or grass.