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Athens City Council Approves $5.7 Million Incentive Package for Retail Development

Strategic Insights

— 1 min read

The Athens City Council approved a $5.7 million incentive package for Noon Athens P3 LLC, a developer planning to bring five retail stores to Athens. The package includes $1.9 million payment after the stores open, another $1.9 million after one year, and a final $1.9 million after two years. Councilman Wayne Harper opposed the deal due to its cost and the lack of a designated source for the city's funding.

Key Takeaways:

  • The Athens City Council approved a $5.7 million incentive package for Noon Athens P3 LLC, a developer planning to bring five retail stores to Athens.
  • The package includes three payments of $1.9 million after the stores open, after one year, and after two years.
  • Councilman Wayne Harper opposed the deal due to its cost and the lack of a designated source for the city's funding.
  • The development is expected to generate about $20 million in annual taxable sales and create more than 125 jobs.
  • The project will involve an investment of $21 million to $22 million.
  • The funding source for the incentives has not yet been designated, and the council will have to decide on the source in the budget for fiscal year 2024 or 2025.
  • Council President Harold Wales voted in favor of the incentives, stating that the city needs to do all it can to keep people buying locally and that the sales tax generated by the stores will be used to fund city services.
  • Wales also cited the example of Publix, which received a $1 million sales tax rebate incentive and paid it back in less than a year.

Statistics:

  • $5.7 million: The total amount of the incentive package approved by the Athens City Council.
  • $1.9 million: The amount of the three payments made after the stores open, after one year, and after two years.
  • $21 million to $22 million: The investment required for the development.
  • $20 million: The annual taxable sales generated by the project.
  • 125+: The number of jobs created by the project.
  • 2 years: The timeframe for the developer to complete the project.
  • 2024 or 2025: The fiscal year during which the council will decide on the funding source for the incentives.

Sources:

  • The Decatur Daily (Decatur, Ala.)

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