Tuesday, August 27, 2013

Rainbow City approves development incentives

The Rainbow City Council voted Monday approving a potential $1.65 million incentive package for a proposed development at Alabama Highway 77 and U.S. Highway 411. However, officials said they still don’t know what stores are coming — even though Publix is mentioned in the agreement. The council unanimously approved the agreement with PV-Rainbow LLC of Safety Harbor, Fla., to develop the 14-acre site at the intersection, behind Mapco. The firm will be given a rebate of 50 percent of the city’s 4 percent sales tax generated from sales at the development up to $1.65 million or for five years of collections — whichever comes first. The city will begin the rebate payments on a quarterly basis after 75 percent of the space is leased, or after two years. City Attorney Jim Turnbach said the city has been working on the agreement for about two years. He said the initial agreement was for $1.5 million, but the city agreed to the increase because of issues with the site. Most of the funds will go to pay for infrastructure improvements including utilities, lighting and parking. The agreement says up to $1.5 million, or 91 percent, of the payments due from the city have been assigned to Publix Alabama LLC, a third-party beneficiary. Paradise Ventures, a Florida-based retail real estate firm, has put preliminary plans on its website for that location, with the largest building in the development labeled Publix.

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