Big Name Stores & Tax Sharing for Proposed Shopping Development

Big Name Stores & Tax Sharing for Proposed Shopping Development

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Mobile, AL -

The City of Mobile and Mobile County could vote next week on a tax sharing plan for a new shopping development.

 

News-5 reported last month that a Costco Warehouse store would be the anchor of the new development. Sources now tell News-5, that developers are in negotiations with Dick's Sporting Goods to locate one of its new Field and Stream Stores there. Cabela's is also being considered at this time.

So too is a Nordstrom Rack, a discount version of the major Seattle-based retailer.

A Super Target store is also a likely tenant.

 

The development is being called McGowin Park. It will be located on Satchel Paige Drive between Hank Aaron Stadium and the Stadium Movie Theater.

 

While not confirming any stores, Mayor Sam Jones hinted that a Costco is key to the deal.

 

"This participation by us is contingent on a wholesale warehouse club that will be located in this development as well as 260,000 square feet of other retail," said Jones.  "Without that, the city, the county, none of us participate."

 

That participation will be in the form of  tax incentives to help cover the costs of construction, wetland mitigation,  and the road widening of Satchel Paige Boulevard.

 

News-5 has learned that under the plan… the City would give up 1.4-cents of the now 5-cent sales tax it collects on all retail purchases for twenty years. That would stay at 1.4-cents no matter if the city's sales tax goes up or down.

 

A similar deal is in place for the County which would give up 30-percent of its 1-cent sales tax for 20-years.  Again, the 30% stays in place regardless of any increase or decrease to the sales tax.

If a hotel is built as part of the development, the development will not get a portion of the County's Lodging tax.

 

The City and County are focused on stores that are not currently located in Mobile or the surrounding area. The hope is to attract regional customers and their new tax dollars. If a store that currently operates in Mobile goes into the new development, it will only receive tax sharing on the amount of business it does above its current sales levels.

 

 "So if they produce only what they had from the location from which they moved, they get no tax sharing," said City Attorney Larry Wettermark.  "It's only on new dollars they create."

 

Sources tell News Five if a Super Target is built at the new shopping complex, it would likely close its store at nearby Bel Air Mall.

 

This would be the first foray into incentives for retailers in Mobile. Jones say the complex will create 1,200 jobs and produce $200 million dollars in annual sales.

 

 

  

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