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Council approves pay-as‑you‑go tax incentive for The Edge redevelopment
Summary
The council approved a five‑year, pay‑as‑you‑go tax incentive for The Edge redevelopment at 815–819 Green Springs Highway, capping the city benefit at $375,000 over five years; developer JJ Thomas described the project and projected local economic impacts.
The Homewood City Council voted 10–0 on Jan. 13 to approve a pay‑as‑you‑go tax incentive for The Edge, a mixed retail and community‑space redevelopment on Green Springs Highway.
Developer JJ Thomas said the project repurposed former retail property into nine leasable businesses, a covered stage and a large community green and that the project cost was a little more than $6 million. Thomas estimated the development would create 16 full‑time and 71 part‑time jobs, produce payroll of more than $3 million a year and generate about $3.6 million in direct and indirect tax revenue over 10 years, including roughly $200,000 per year in city receipts under current forecasts.
Under the approved resolution (No. 2501), the city will share 50% of the city’s non‑educational sales and use tax attributable to The Edge (the developer characterized that as 1.5 percentage points of a 3% rate) on a pay‑as‑you‑go basis for up to five years. The benefit is capped at $375,000 total and $75,000 per year. Thomas said the incentive is intended to help the project cover higher‑than‑expected construction and operating costs and to align the city as a partner after the developer completed the project.
Council discussion focused on ensuring the incentive was a one‑time, limited request and on related city connectivity work. Councilor Aleman asked whether the developer anticipated returning for additional incentives; Thomas said the request was structured after construction and that the developer aimed not to return for further help. Councilor Simpson and others disclosed that a separate city‑funded sidewalk connection on the city right‑of‑way is under consideration and will be discussed in finance committee; councilors said that sidewalk project would be a city capital work separate from the incentive.
Councilor Guatney moved the resolution; Councilor Aleman seconded. The motion passed on an aye vote of 10–0; the resolution was recorded as 2501. No amendments were made to the incentive at the council meeting.
The council did not specify additional monitoring or clawback provisions beyond the annual and five‑year caps stated in the resolution. The city and developer indicated they would coordinate regarding the separate sidewalk connection and any future committee referrals related to connectivity.
