Alabaster’s City Council cleared the way for a second new major shopping center, received Mayor David Frings’ presentation of the fiscal year 2006 budget and approved a cost of living increase for city retirees Monday night.

In addition, two doctors presented a check for $1, 500 the Hurricane Katrina Relief Fund in Alabaster.

The council approved an ordinance clearing the way for the sale of Series A and Series B bonds totaling more than $13 million in conjunction with a new shopping center to be called Colonial Promenade Alabaster South at the intersection of U.S. Highway 31 and Interstate 65.

Also included in the action was authorization for the city to seek legal clearance for the sale of the bonds.

The shopping center has the potential to generate up to $100 million in sales tax revenues for the city during the next 20 years, officials said.

The site is located across from the current 680,000-square-foot Colonial Promenade which houses the Wal-Mart Supercenter among other stores.

The council previously approved a resolution authorizing Mayor David Frings to sign an agreement with Colonial Properties Trust for infrastructure that will lead the way to the development of the 350,000-square-foot shopping center with 11 outparcels off Highway 31.

Cam Ward, executive director of the Alabaster Industrial Development Board, said the agreement calls for the city of Alabaster to spend $4 million for infrastructure, which Councilmember Jim McClain said will include such items as roads, acceleration and deceleration lanes, red lights, retention ponds, curbs, gutters, utilities and sewer.

The city of Alabaster previously spent $6.74 million to purchase almost 16-and-a-half acres at the site from Brian and Janis Gordon for economic development.

And Ward confirmed that the city would lease that land to Colonial Trust Properties as a part of the new shopping center project for $10,000 per year.

Ward said the entire project, referred to as Phase II, would consist, of 55 acres.

He said the proposed 350,000-square-foot shopping center in Phase II along with the 685,000 square feet in the current Colonial Promenade Alabaster shopping center will give the city 1 million square feet of shopping area in a period of only three or four years.

Ward also said the new shopping center is expected to generate $5 million per year in revenue for the city.

He said the previously constructed shopping center (across Highway 31) would generate an estimated $5 to $6 million in revenue annually.

Following approval of the ordinance regarding the bond issues, the council set a public hearing on the matter for Oct. 3.

In other business, Mayor Frings presented a budget for consideration to the council including a 3 percent cost of living increase, $50,000 for Buck Creek mill property cleanup, $70,000 for complete mapping of the city and $100,000 for a veterans memorial at Veterans Park.

Frings said the budget will have a general fund beginning balance of $3.51 million and an ending fund balance of $3.52 million.

It includes general fund revenues of $19.46 million and general fund expenses of $18.35 million.

Frings said the budget includes additional personnel including eight police officers (four already hired), six firefighters and other personnel.

The council declined the mayor’s request to approve the budget Monday night in order to give it further review.

However, in a separate matter, the council approved a 4 percent cost of living increase for city retirees. The last COLA was given retirees in 2002.

Dr. Stan Stubbs and Dr. Tom Weber presented a check to the Hurricane Katrina Relief Fund in the amount of $1,500. They also sponsored a blood drive that collected 40 pints in four hours.

The council also approved a resolution to support a certificate of need for Shelby Baptist Medical Center’s open-heart surgery program.

In other action the council:

Approved a retail beer (off premises only) license for Quick Shop No. 2 at 1565 Simmsville Road and a restaurant retail liquor license for Thackers Restaurant Inc. on the Colonial Promenade Parkway.

Set a series of special called meetings for annexation of land near Calera for Oct. 11 beginning at 6 p.m.

Announced a work session for Oct. 3 at 5:30 p.m