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By LIZZIE BOWEN | Staff Writer

PELHAM – Pelham has received a formal letter of request submitted by the vice president of development/brokerage for proposed project located on the northwestern corner of Highway 52 and Pelham Racquet Club. The new development is proposed to include coffee, a quick service restaurant with a drive-thru, sit-down restaurants, general retail and a hotel.

 

This space is 5.5 to 6 acres of the 21-acre Bearden property.

Potential benefits to this new project are listed as providing the community up to an estimated total of 130 new jobs, potential community green space utilizing the excess land, providing services to the Pelham Racquet Club as well as Fungo Holler, potential connectivity with the Shelby County office and Encompass Rehabilitation Hospital and city property on Highway 35 and possible conveyance of the excess land to the city for recreational purposes.

The planning and zoning board will be given the opportunity to approve on June 8, and if passed, the city council will be given opportunity to approve on June 12.

The land will have to be re-zoned with the current zoning labeled as an agricultural district. Traffic counts on Hwy 52 add up to 27,000 cars a day.

Acquisition cost is estimated at $2,000,000.00, site work cost estimated at $4,200,000.00, softs costs, fees and legal are estimated at $1,110,000.00, Retia, Coffee and QSR cots are estimated at $3,500,000.00. This comes in at a total of $10,610,00.00. Fine site work costs are estimated at $1,000,000.00. Hotel building is estimated at $16,200,000.00. This comes in with a projected total development cost at completion of $27,810,000.00

Special Economic Development incentives are being requested by Vice President of Harbert Reality Brokerage and Development Thom Hickman and these incentives include:

-A rebate of the city’s share of the sales tax collected on the purchase of construction materials, furniture, fixtures and equipment associated with the project

-City ownership transfer of the portion of the 60 plus strip of land located along Racquet Club Parkway that is needed to allow for ingress and egress to the project site

-The city to pay for the cost of the required roadway improvements noted on the project’s concept design plan as a right-hand turn lane onto Racquet Club Parkway from westbound Highway 52 and a right-hand turn lane onto westbound Highway 52 from Racquet Club Parkway

-50 percent share of the property tax increment generated by the project’s completion for the period of 10 years

-75 percent share of the next sales tax generated from the retail commercial component for 1-5 years of the project declining to 50 percent of the net sales tax generated from the project for 6-15 years

-The total of the sales tax sharing and lodging tax sharing portions of the Special Economic Development Incentive to the developer would be capped at a maximum of $2,000,000

-The time period associated with the lodging tax sharing formula will be capped at 10 years