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Hoover council approves development deal for Village at Brock's Gap Phase 2 with tax-revenue sharing
Summary
City council approved a development agreement for Village at Brock's Gap Phase 2, a roughly 79,000 sq ft retail/office project that includes a 50% net-new sales-tax revenue share for 10 years with a $5 million cap; the deal requires a designated fine-dining anchor and forbids tenant 'poaching.'
The Hoover City Council on its regular meeting approved a development agreement with TVBG 2 LLC to advance Phase 2 of the Village at Brock’s Gap, a mixed retail and office project at the corner of Stadium Trace Parkway and Brock’s Gap Parkway.
Staff and the developer described the project as about 79,000 square feet of retail and office space. Patrick Denny, the developer, said the center targets primarily sales-tax-generating tenants and estimated annual sales of about $30 million to $40 million, with total developer investment of approximately $37,000,600 and estimated hard costs of roughly $27,000,710.
The development agreement approved by council offers the developer a revenue-sharing incentive: 50% of net new sales-tax revenue for up to 10 years, capped at $5 million, whichever occurs first. The agreement requires the project to include a fine-dining anchor drawn from a specified list in the contract; any deviation from that list would require the developer to return to the council for approval. Staff said the city will not expend direct upfront money for the project; instead the incentive is structured as a share of future new sales taxes.
Council members voiced support during the public hearing, praising the first phase and the developer’s commitment not to ‘poach’ tenants from existing Hoover businesses. In response to a resident question about specific prospective tenants, Mr. Denny listed high-end steakhouse concepts and national apparel and boutique prospects as the market targets and said negotiations were ongoing. Council members emphasized the project’s potential to attract new-to-market retailers and a first-of-its-kind fine dining option for the city.
The council voted to approve the agreement after the public hearing; staff said the development agreement also contains provisions for possible future creation of an improvement district to support tax-exempt financing for public infrastructure. The developer, city staff and council agreed to continue coordination on traffic, shared-parking agreements and other site details as the project advances.
