Troy recruiting new retail center development
Published 3:00 am Tuesday, May 28, 2019
The Troy City Council will consider this afternoon offering incentives to bring a new retail shopping center to the city.
The city is considering offering a cash incentive of $1.5 million alongside other incentives in exchange for the development of a commercial retail center by Hutton Troy Marketplace.
“This phase would be the development of 130,000 square feet with a capital investment to exceed $30 million,” said Mayor Jason Reeves. “Hutton has done about 1,000 of these projects in 40 states, so they’re a very well-known developer.”
The new center would be located on U.S. Highway 231 next to Lowe’s across from Troy Regional Medical Center.
Reeves said there is a total project area of about 25 acres that could be developed there in the coming years.
The new retail center would benefit citizens in a variety of ways, Reeves said.
“We certainly would expect to see retailers that we do not currently have,” Reeves said/ “This will bring new anchor-type shopping locations to not only hold shoppers in Troy, but also to draw shoppers from the surrounding area. There will be quite a few new jobs created, many full-time and a lot, like all retail, will be part-time.”
Reeves said he can’t yet name some of the potential retailers, but said names of the stores should be revealed soon. The center will primarily be retail stores, Reeves said, although the center could include restaurants as well.
As another incentive to the company, the city is offering to remit $0.015 of each dollar of revenue subject to sales tax for a term of up to 20 years.
“That’s basically half of the city’s 3 percent sales tax that we would be giving back to them,” Reeves said. “That’s only on money they’ve generated. This is something that has been done in many other places as well.”
Reeves said a “district fee” of 1 percent will also be collected by the city for a period of 20 years, to be remitted to the district for a term of 20 years or shorter.
“They would use the district to finance certain things and then use that revenue to pay that back,” Reeves said. “They get it for a certain amount of time until it reaches a certain amount and then they cease to receive it.”
The council ill be considering entering into this project agreement Tuesday at its regular council meeting. The executive committee will meet at 3 p.m. upstairs at City Hall to discuss the agenda and will hold its business meeting at 5 p.m. in the City Council Chambers.