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Homewood council approves five-year tax incentive for The Edge development
Summary
Homewood City Council voted 10-0 on Jan. 13, 2025, to approve a five-year pay-as-you-go sales tax incentive for The Edge redevelopment at 815–819 Green Springs Highway, capping the city's contribution at $375,000 and outlining expected job and revenue impacts.
Homewood City Council voted 10-0 on Jan. 13, 2025, to approve a pay-as-you-go sales tax incentive for The Edge, a redevelopment at 815–819 Green Springs Highway that the developer says includes nine businesses and a large community green space.
The resolution, No. 2501, caps the city's benefit at $375,000 over five years and would route 50% of the city's non-educational sales and use tax from new sales at the development back to the project, with a proposed annual cap of $75,000. Developer JJ Thomas described the project's scope and projected economic impact during a public hearing before the council vote.
"The project's cost [is] around $6,000,000 a little over," JJ Thomas told the council. He said construction created jobs and that, now that construction is complete, the development is expected to support 16 full-time and 71 part-time employees and a payroll of more than $3 million a year. Thomas told the council he anticipates roughly $3.6 million in direct and indirect tax receipts to the city, county and state over the next 10 years, and estimated about $200,000 a year in tax revenue to the city specifically.
Councilor Aleman asked whether the incentive request represented the developer's final ask. Thomas said he intended the request to be "the one and only and final" incentive from the city for the development, and described higher-than-expected costs from construction, borrowing and operating the site at the quality he said Homewood requires.
Councilor Simpson noted a related item: a planned city sidewalk connection that would run on the city right-of-way to link Columbiana Road and the corridor that includes The Edge. Simpson said the sidewalk would be a separate city project and could involve city funds; the matter will proceed to the Finance Committee for further discussion.
Councilor Guatney moved approval of the resolution; Councilor Aleman seconded. The council voted 10-0 to adopt Resolution 2501.
The incentive is structured as a partnership the developer characterized as "a small way" for the city to help the development become established while directing most benefits from new sales to the city and region. The council and developer also discussed connectivity and pedestrian access as follow-on items that may require separate city funding or committee consideration.
