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Prattville council approves up to $5 million sales-tax rebate for AJM LLC (Project Queen) amid public opposition
Summary
The Prattville City Council voted to authorize a tax rebate of up to $5 million for AJM LLC (referred to as Project Queen/Rural King). Public commenters questioned whether a large national retailer needs incentives and raised concerns about the public notice naming multiple entities.
The Prattville City Council on Tuesday adopted a resolution authorizing a sales-tax rebate of up to $5,000,000 for AJM LLC in connection with a development identified in city documents as Project Queen. The rebate will accrue until the $5 million has been rebated in full or until 11 years have passed, whichever comes first.
Why this matters: The rebate was approved after a public hearing in which residents urged the council to reconsider providing a large incentive to a national retailer while local businesses remain. The vote concluded the public hearing and placed the rebate under the authority granted in the resolution adopted by the council.
Council action and legal basis: The resolution (introduced and moved by Councilor Strutchett) cites amendment 772 to the Constitution of Alabama (1901) as the authority permitting a public body to grant public funds or things of value to a business for economic development. The city authorized the mayor to execute any documents necessary to carry out the rebate.
Public comment and concerns: Two speakers at the public hearing asked the council to vote no. John McFinnegan, of 211 Dear Trace, said he opposed the rebate and asked the council to clarify a discrepancy he found in the legal advertisement, which named Bridal King Realty LLC and other related entities in addition to AJM. "I just don't know if — and I'm bringing this up now so that maybe when the resolution comes up, if an amendment needs to be added, that you can add the name," McFinnegan said.
Alyssa Brown, 2022 Summit Parkway, urged the council to reject the rebate on principle. She told the council that national chains recirculate less revenue locally than small businesses and alleged business practices by Rural King in other communities, saying, "a company that proudly proclaims, we are a $2,500,000,000 business and we are growing, even needs such a financial kickback from the city." Brown also asked the council to consider Project 2040 goals and whether incentives prioritize local businesses.
Council deliberation and vote: Councilors did not debate the resolution at length on the record; the council adopted the resolution by voice vote. No recorded opposition or abstentions were announced during the vote and the chair declared the resolution adopted.
What the resolution does not specify: The resolution sets the maximum rebate amount and the 11-year cap but does not list a payment schedule in the city resolution text read on the record, does not specify clawback provisions in case of nonperformance, and does not attach the full project development and cooperation agreement to the public reading. The public had earlier been shown a legal advertisement that named multiple corporate entities, a discrepancy several commenters asked the council to reconcile.
Next steps: The mayor was authorized to sign documents needed to implement the rebate. The resolution does not on its face require additional council action to finalize rebate payments beyond the executed agreements cited by staff.
Ending: Residents who opposed the rebate indicated they will continue to monitor the agreement language and the administration's implementation of the incentive. The council briefed no additional public schedule for reconsideration at the time of the vote.
