Sales Tax Rebate For U.S. 31 Development Granted By Council

HOOVER, AL -- The Hoover City Council approved a sales tax rebate for a development on U.S. 31 from Vestavia Hills into Hoover. The property is at 1539 Montgomery Highway, which is the site formerly occupied by a Mr. Transmission auto repair shop and Mexico Lindo restaurant.

The council agreed to give Orange Development a rebate equal to 25 percent of sales tax revenues received by the city from businesses on that property over a period of 10 years, not to exceed $500,000, according to a report by the Hoover Sun.

The initial request by the developer was for a 50 percent rebate, but Councilman Curt Posey said he recommended cutting the rebate to 25 percent because the size and scope of this project is not as large as most of the projects that have received tax rebates from the council.

Orange Development has committed to investing approximately $150,000 in a new southbound turn lane from U.S. 31 into the site, with the city paying an estimated $20,000 to redo the traffic signals there.

Orange Development and the city expect the new development to generate $1.45 million in sales tax revenues for the city between 2020 and 2030.

The tax rebate agreement does not allow Orange Development to count any tax revenues from businesses that relocate from within the city of Hoover or anywhere in Jefferson County, in order to honor an anti-poaching agreement between Hoover and numerous other cities in the county.