Hooper City reviews fiscal analysis of proposed Smith’s Marketplace; consultant projects net fiscal benefit

At a Hooper City Council meeting, a consultant presented a fiscal‑impact analysis of the proposed Smith’s Marketplace mixed‑use project, concluding the development would generate a net fiscal benefit of about $21.5 million over the model period (future dollars) and roughly $11.8 million in net present value, with Hooper City’s share estimated at a $7.7 million net benefit over the period (about $4.3 million in present dollars).

The consultant, identified in the meeting as “Mister Birmingham,” told council members the study includes assumptions about 17 residential units, 65,000 square feet of retail anchored by a Smith’s grocery, and a possible community reinvestment area (CRA) using tax‑increment financing (TIF). Birmingham said the analysis assumes 75% of incremental property tax revenue from a defined project boundary would be captured by a CRA for 25 years, producing an estimated nominal $6.0 million or about $3.9 million in net present value for infrastructure funding.

Why it matters: the city must weigh near‑term infrastructure costs and the timing of revenues against a multi‑decade fiscal benefit. Birmingham warned that the sewer lift station needed to serve the project is an off‑site cost likely to be paid by utility customers or capital financing; the study used a conservative $3.0 million allowance (the city provided a bid tabulation for about $2.2 million) to reflect construction inflation and contingencies.

Key findings and assumptions

- Project components analyzed: 17 residential units, 65,000 square feet of retail (including a grocery…