Hoover – The Hoover City Council this past week voted unanimously to approve a $23 million economic incentive package for the next two phases of the Stadium Trace Village development along Interstate 459 at John Hawkins Parkway.
Broad Metro development company has already invested $150 million to develop Stadium Trace Village and plans to spend $200 million more for phase two. That’s a combined investment of $350 million that should eventually generate a combined $123 million in annual sales activity and $2 million a year in property taxes for Hoover schools each year. It also will have created an estimated 750 permanent jobs, and phase two is expected to create 300 or more temporary construction jobs.
The City Council agreed to give Broad Metro a $4 million upfront payment to help pay for stormwater improvements that will help solve a problem of sediment erosion into nearby Scout Lake, and up to $19 million in breaks related to sales and lodging taxes and construction permit fees.
The tax breaks approved this past week included a rebate of 60% of sales taxes received from new development in phases two and three, 75% of lodging taxes from phases two and three and 75% of construction-related sales taxes and construction permit fees.
According to City Manager Brian Muenger, the city should be able to recapture the $4 million upfront cash outlay by the fifth year, and the total amount of revenue the city should receive from the development over 20 years is $27.1 million. In 13 years, the city should expect to get 100% of sales and lodging tax revenues, amounting to nearly $2 million a year.
Additionally, Hoover City Schools should get $24.6 million in new property taxes over 20 years because the value of the land will increase dramatically with all the site improvements and development. The combined amount of revenue going to all government levels is projected to be $63.8 million over 20 years.
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