Moody Council approves incentive deal for $100 million retail development
The following article is by Nathan Prewett for the Trussville Tribune:
MOODY, Ala. (Trussville Tribune) — The Moody City Council approved a reimbursement agreement with Moody LP to construct a retail space on a property along the city's thoroughfare on Highway 411 during its meeting on Monday.
City Attorney Kyle Barrentine gave an overview of the agreement during the public hearing, citing Amendment 772 of the Alabama Constitution that allows a municipal body to provide public funds as incentives for economic growth.
Moody LP seeks to build 200,000 to 250,000 square feet of Class A commercial retail space. The property exists before a section of the Little Cahaba River and stretches from the 7 Brew Coffee location to Joey Atkins Drive.
'It's an area and section of town that the city has been trying to get redeveloped for a number of years and it can have some challenges there,' Barrentine said. 'This agreement holds out the promise for that to happen.'
The challenge, he said, is in clearing the land, grading, and construction.
The cost of the development is expected to be an estimated $100 million. As a result, the developer asked to be provided with incentives to get the project started, including abatement, sales and property taxes, fees, and permits.
Barrentine added that it is expected to create a 'substantial' amount of jobs upon completion, as well as have establishments not currently in the city. Tax revenue that the space is expected to generate will also be 'substantial'.
Among the terms of the agreement is that the first $50,000 made per year will be received by the city before sales or other tax abatement that are eligible to be rebated. The developer will have five years to begin the incentive process after it invests a minimum of $10 million.
The abatement percentage would be up to $65.1 million during the course of 35-40 years, Barrentine said or whenever the sum is paid.
The abatement percentage is that for the first five years after the incentive is activated 100% of the derived revenue will be 100% for the developer. But at the 61st month, 85% of the revenue will go to the developer with 15% going to the city.
At the 180th month, 75% of the revenue will go to the developer while the city receives the remaining 25% until the agreement's termination by payment of the sum of $65.1 million or the 35 to 40 year timeframe runs out.
Barrentine said that the city published a legal notice as legally required in the St. Clair Times advertising the agreement and the meeting with its public hearing.
Mood LP's owner, Stan Pate, was present and said that as part of the project the existing buildings on the property will be demolished but that he will work with the small business owners there to relocate.
Margaret Goodwin brought up concerns about the river, particularly with potential flooding. Pate said that among the first actions is to have engineers assess the area and form a soil erosion plan.
'We recognize the importance of the river,' Pate said.
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Michael Ray, who owns a tattoo parlor on the property, also voiced concerns about the river, saying that the endangered aquatic life may be at risk with the construction there. Later in the meeting Karen Bareford with the Cahaba River Society spoke briefly and said that she would be willing to work with Pate to ensure protection of the river's wildlife.
Ray and another resident, Craig Martin, brought up potential traffic issues, with Martin urging that additional red lights be put at a section of the road by the property near a Starbucks location said to be heavy with traffic. Pate agreed with him and said that a traffic study would be done.
Ray also pointed out that he and other business owners that pay leases month by month to operate there would be forced to leave and did not desire to do so. Pate reiterated that the leases would be honored and that he would work to help relocate all of the owners.
'We're not–I'm not about to be unfair with any of the businesses located there,' Ray said.
He also criticized the city's advertisement for the hearing, saying that it should have been published in other outlets and posted on social media as well.
Val Bagley said that the project will affect the families of the business owners and their employees.
'Moody's a small town,' Bagley said. 'And I love the people here. They've always wanted to keep it a small town. We all understand that you have to have growth at some point in time. We get that.'
'The businesses that are going to be demolished – it's going to affect the families. Not only that, it doesn't matter what our lease says, the people that are leasing, yeah, we will be affected. But our employees, as soon as they find out that this is happening, they're out. They're going to be looking for somewhere else to go.'
She added that when they look elsewhere for a place to rent the rent would be increasing 'substantially.'
After discussion, the council voted unanimously to approve the agreement.
'I think it's a positive thing for the city of Moody,' commented Mayor Joe Lee. 'It's property that is a challenge to develop and we've shown it to many developers and we feel that Stan Pate is the right person to develop this property.'
Moody City Council meetings are held on the second and fourth Monday of every month at 6 p.m. at Moody City Hall on 670 Park Ave.
Nathan Prewett can be reached at nthomasp6@gmail.com.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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