[fiatalert]
-->
You Are Here: Home » Business » Trussville Council approves agreement with Edgar’s Bakery that provides incentives to eatery while protecting city’s interests

Trussville Council approves agreement with Edgar’s Bakery that provides incentives to eatery while protecting city’s interests

By David Lazenby

Editor

TRUSSVILLE —  During a called meeting, today, Trussville city councilors unanimously approved a project development agreement between the city and Edgar’s Trussville, LLC.

Rick Stotser

City attorney Rick Stotser said the agreement not only guarantees the incentives offered by the city to attract the popular Birmingham-based bakery to Trussville, but also protects the city’s vision for planned growth in the event the business owner decided to sell the property it purchased last week from the city for $500,000.

“If they choose to sell the property, we have the right to buy it, and then we can control what’s done with it,” Stotser said in regard to a clause in the contract that gives the city first right of refussal.

George Glenn, who owns property adjacent to the Main Street plot where Edgar’s Bakery will be located, criticized the level of enticements being given by the city to Edgar’s Bakery during today’s meeting.

Stotser responded that nothing the city is offering to Edgar’s is out of the ordinary.

“Right now, if you look around, the state, cities and municipalities are giving millions of dollars of incentives for different developments,”Stotser said. “They’ve just done that up in Gardendale where they gave $8 million worth of incentives for a developer to come in.” Council President Brian Plant added that Homewood also offered incentives in order to attract developers of the SoHo Square district.

Stotser said tenants such as Edgar’s that enter into project development agreements with the city are required to have certain design standards and city council approval to receive financial benefits from the city.

“We get to approve their design. They’ve got to design it and build it within a certain period of time. They’ve got to use it for Edgar’s or another similar restaurant that we approve for a certain number of years,” Stotser said. “So, we’ve got all these strings tied so we can help control the development and the look of the downtown.”

Other requirements of Edgar’s in the 23- page development agreement include the following:

  • Edgar’s must have a title to the project by Sept. 30;
  • Construction has to begin by Nov. 30; and
  • Completion of the building project has to be done by Dec. 31, 2018.

Stotser said Edgar’s will receive a tax abatement for up to 10 years, under the agreement Trussville officials sign off on today.

“They’re making a capital investment in the city of $2.5 million, approximately. They’re getting an abatement for up to 10 years, after their opening, for up to $500,000. They get 3 cents of the sales tax for the first seven years, 2 cents for every year after that, until that $500,000 comes out,” Stotser said.

Stotser said these types of financial incentives to bring in high-quality businesses has become standard as competition among cities, counties and states to attract companies that enhance their economic development has intensified.

“In order to develop a municipality, you have to incentivize developments that you want to come into the city,” said Stotser who added that city officials have met with the Birmingham Business Alliance about steps the city needs to take in regard to infrastructure and incentives provided “to get these big players into the market.”

Stotser said Edgar’s will not receive the money being offered by the city until the new restaurant to be located at 156 Main Street has been open for four months.

“We’re not going to let someone open for one month, get the money and leave. They have to be producing revenue for the city and generating revenue for the city for a period of time,” he said.

“If all the conditions for releasing the money aren’t met by May 1, 2020, the money is paid back to the city. We’ve tied these developers and owners to certain criteria that they have to live up to in order to receive what they need.

Trussville Mayor Buddy Choat said he expects construction of the eatery to be completed in about six to eight months.

The Edgar’s Bakery in Trussville will be located  across the street from Moe’s Original Bar B Que.

Previously a Sticks & Stuff store, that went out of business in 2014, did business at the site where Edgar’s will be located.

 

Comments

  1. Vickie Cobb says:

    So glad for Edgars but what about the business owners who have been here and paid our sales tax and property tax to Trussville but are never offered an incentive from Trussville? And this is competition with already established business’s.

  2. Totally agree Vickie….this is going to hurt our local bakeries.

  3. I’m beyond excited. The incentives that were given are actually very common for cities who want to attract high quality retailers such as Edgar’s. Edgar’s is delicious and I can’t wait! We do not have a bakery that can do & offer all the things that Edgar’s can. I drive to 280 all the time for their cakes, cupcakes etc.

  4. What local bakeries? To my knowledge, no one in town offers the selection of baked goods that Edgar’s offers. There is no dedicated bakery. Some places may offer a smattering if random baked items, but no bakery. This is only going to help our city!

  5. Natalie AdkinsonThree Eared Rabbit….just hope we shop with all our local folks first.

  6. I’m glad that Edgar’s is coming, however I’m not in agreement that we have to create incentives for them to be here. That can create quite a bubble as we are already doing that with the other new businesses. The market should drive itself.

  7. Well said Matthew Norman. The government shouldn’t Be in the business of picking winners and losers. As a local government, we have a say and should. They are accountable to their constituents.

  8. It would be one thing if we were an underperforming area and it were a manufacturer bringing in 200 jobs.This is a bakery. They will employee… What? 10 or 12. And those employees won’t live here.

  9. Vickie Cobb says:

    If you put a lot of money into a business and didn’t take a paycheck for a while to get the business going and then went thru a recession and have always paid your taxes and supported your community then you find out someone will be blocks away from you that will serve sandwiches and cakes and the city offered them incentives to do so you would be upset too.

  10. Vickie Cobb says:

    And not that I am not glad that someone like Edgar’s is coming to Trussville. Shop Trussville first and maybe everyone can prosper and add to our beautiful city!

  11. There is competition among cities to attract businesses and the fact is incentives are part of that competition. I completely understand reservations about offering incentives. But it is a reality in today’s market to attract the business people in Trussville have said they want downtown.

    There are also incentives for existing property owners in the downtown district. The Tribune has reported several times on the grant program offered through Trussville Redevelopment Authority. The grant program has already made a dramatic difference in the look of businesses on Main Street and there are more in the pipeline. (I’ll link our latest report at the bottom of this post.)

    Lisa, you are correct. Local government is accountable to their constituents. In the last municipal elections, downtown redevelopment was the #1 issue for Trussville voters. Virtually every winning candidate campaigned heavily on supporting downtown redevelopment through a strategic recruitment and incentive plan. I also believe that is why more has been accomplished for downtown in the last 12 months, than the previous many decades.

    I believe what you are seeing right now is local government being accountable to the constituents who elected them by fulfilling their campaign promises.
    https://youtu.be/9V-QE2syL1E

  12. Matthew Norman many cities do this with way less than 200 employees. I personally can’t wait for Edgar’s. Finally, a great bakery will be in town & it is also great for breakfast and lunch. I voted the way I did for mayor last time because of his promise to do exactly what he is doing now.

Scroll to top