Madison City Council OKs $3 million tax incentive for developer of new midtown shopping center

Rezoning plan for Wall Triana and Browns Ferry.jpg

The Sembler Company plans to build a 130,000-square-foot shopping center with a large grocery store as the anchor on the 20-acre parcel on the bottom, while Madison City school is planned for the top parcel. There are several road improvements coming along with the development of the shopping center.

MADISON, Alabama - The City Council approved a $3 million incentive package to a commercial developer Monday in exchange for a series of road improvements at Wall Triana Highway and Browns Ferry Road.

The agreement is connected with the Sembler Company's plans to build a 130,000-square-foot shopping center with a large grocery store as the anchor. There would be an additional 12,000 feet of linear retail space adjoin the grocery store, which will face Wall Triana, and three outparcels. This is the 20-acre parcel the council rezoned from residential to commercial in late July, despite protests from some nearby residents.

Josh Beyer, vice president of development for Sembler's Florida and Gulf Coast region, said there's still a lot of work ahead on the project, and he doesn't see construction starting until the end of 2015 or early 2016.

"That's opening late 2016 at the earliest," he said.

The name of the grocery anchor cannot be revealed yet, Beyer said, but one city councilman said it was "a first-class" store.

While there are middle, left-turn lanes at all four connections at Browns Ferry Road and Wall Traina Highway, there are no right-turn lanes to speed traffic flow. The new shopping center at the intersection will add a right-turn lane from eastbound Browns Ferry onto northbound Wall Triana, as well as right-turn lanes from Wall Triana into the shopping center. (File photo by Paul Huggins/phuggins@al.com)

The incentive package divides sales taxes generated at the shopping center 50/50 between city and Sembler once a minimum threshold of taxes has been met. The incentive will be in place for 12 years unless the the $3 million is collected before then. In return, Sembler will provide the following infrastructure improvements:

  • Adding a right turn lane from westbound Browns Ferry onto northbound Wall Triana. This will stretch back a few hundred feet to Landers Road. The council had plans for the right-turn lane on Browns Ferry in March 2013, which estimated that project at $250,000.
  • Landers Road will be extended across Browns Ferry northward to connect with a new, unnamed east-west road running beside the shopping center.
  • The new east-west road will extend from Wall Triana to the end of the Sembler property. The road will follow the property line that separates the shopping center from 20 acres owned by Madison City Schools for a future school. The city has plans to someday extend this road further east and connect with Plaza Boulevard to create more retail opportunities.
  • Adding a new traffic lane on Wall Triana north of Browns Ferry fronting the shopping center as well as adding right turn lanes for access the shopping center. This essentially will change Wall Triana in that section from a two-lane road to a four-lane road.
  • All road projects also include dedicating right of way to the city, and all improvements must be complete when the anchor store opens.

During the rezoning public hearing on July 28, one of the most common concerns was increased traffic a shopping center would bring to an already congested intersection. Former Councilman Tim Cowles, however, spoke in favor of the development, saying it would bring needed road improvements faster.

Councilman Tim Holcombe, who was the lone vote against rezoning, said the road improvements ought to alleviate a lot of traffic concerns there that were mentioned at the previous meeting.

"We've been wanting to make those improvements on Browns Ferry and Wall Triana for years. Hopefully, having some of the road improvements made will take a little of the sting away from residents in that area," he said.

Councilman Mike Potter said the scope of the road work goes far beyond the $250,000 worth of improvements city had planned at Browns Ferry and introduces new roads that creates more retail possibilities at Plaza Boulevard.

Councilman Gerald Clark, who represents the area of the shopping center, said the city will soon have to address increased traffic on Wall Triana south of Browns Ferry.

This article was updated at 9:10 a.m. to clarify that the 50 percent of the taxes will be rebated until the $3 million level is reached, and again at 1 p.m. to show that only one of the coming roads projects was planned.

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