The Gardendale City Council approved Resolution 2023-081 on May 15, 2023 that extends sales tax incentives (rebates) and a Site Development Grant to developer PGP Gardendale II LLC (PGP), the developer of The Crossings at Magnolia Place.
The City will use a measure of one-half of the incremental municipal sales tax for business taxpayers (tenants) in the development and give the developer 1/3rd of that as tax incentives (rebates) for a period of 10 years.
The developer will also receive 1/9th of the municipal lodging tax generated by businesses at The Crossings at Magnolia Place.
The site would be a prime location for a new Gardendale hotel with work continuing on the buildout of the development that currently is home to Longhorn Steakhouse, Olive Garden and soon to be home to Jiffy Lube, Chipotle and Ulta Beauty.
The approved Resolution also gives $570k to the developer for redeveloping the site for further road and signalization improvements, including work on Odum Road and turn lanes. This would be paid to the developer over a 5-year period in equal installments.
Below is part of Resolution 2023-081:
WHEREAS, as a material inducement to PGP Gardendale II LLC to redevelop and improve the real property within the City’s corporate limits, the City and PGP Gardendale II LLC propose to make and enter into a redevelopment agreement in substantially the form of Exhibit “A” attached hereto (the “Redevelopment Agreement”) whereby the City ·will grant public funds to a private entity in connection with the development and renovation of retail shopping Center known as The Crossings at Magnolia Place located at Gayle Street in the City of Gardendale, Alabama. These public funds are for a period not to exceed ten (10) years from the Completion date and will be paid from one-half (1/3) of the incremental municipal sales taxes and 1/9th of the Municipal Lodging Tax generated by the businesses at such location, but without regard to the additional tax imposed by Ordinance No. 2014-019, if any. The City will pay to Developer as a site development grant from the City’s general funds appropriated for such purpose, the total sum of $570,188.00 payable in five (5) equal annual installments within forty-five (45) days after the beginning of each calendar year in the amount of $114,038.00 each. The site development grant will partially reimburse Developer for its work in improving Odum Road, including turn lanes and signalization, to be performed by Developer, which is a further benefit to the City.
The new incentives and site grant come four years after the City Council gave the “public land” to the developer by grant in return for PGP actually developing the 17.81 acres of prime Gardendale real estate that formally was home to Bermuda Estates. That public land grant was approved by the City Council through Resolution 2019-115 on September 3, 2019.
Below is part of Resolution 2019-115:
WHEREAS, as a material inducement to PGP Gardendale II LLC to develop and improve the real property within the City’s corporate limits, the City will grant public lands to a private entity in connection with the private development of a new commercial corridor that may include, but not be limited to, retail shopping, restaurants, hospitality and related uses. These public lands consist of approximately 17.81 unimproved acres more or less located East of I -65, South of Exit 271, Fieldstown Road, West of Odum Road and North of Odum Circle in the City of Gardendale, Alabama.
