Clanton approves deals to bring Starbucks and Ellianos – The Clanton Advertiser

By JOYANNA LOVE / Editor-in-chief

Clanton City Council has unanimously approved performance-based incentive deals with two developers to bring coffee chains to the city.

The deal with SLW LLC will bring an Ellianos, and a deal with DPG Single Tenant LLC will bring a Starbucks.

Rod Kanter of Bradley Arant, a public finance and economic development lawyer hired by the city, presented highlights of each of the agreements ahead of the vote.

He said the agreements were “favorable to the city”.

Both agreements are based on the sales tax generated by the company.

“Payments are only made after the project is built and completed,” Kanter said. “… If they build the project and the project stops for some reason, they don’t come away with your money. “

Kanter said accords like these are often used to help develop hard-to-develop properties.

The SLW LLC deal would give the company half of the revenue Ellianos earns up to $ 45,000 or six years, whichever cap is reached first. Kanter said the cafe will be located near Walmart at the Highway 31 exit.

The DPG Single Tenant LLC deal would give the company half of the revenue Starbucks generates over 10 years or a monetary cap of $ 150,000, whichever cap is reached first.

Water and sewer impact charges are waived for both companies. Each will also have access to a pile of soil that the city needs to move in order to level their project sites.

Kanter said it will cost DPG Single Tenant LLC around half a million dollars to develop the Starbucks site. The site will be between Jack’s and Burger King near Interstate 65, exit 205, according to developer Michael Delaney.

This project is expected to have two tenants. Milo’s was mentioned as a possibility for the second tenant.

Local business owner Mickey Bates asked if local businesses have benefited from these types of incentives.

“Why do we want to bring in someone like (Starbucks) who will be competing with our local (Much a Brew)?” Bates said

Mayor Jeff Mims said no one asked, and later said if a local business owner was to build something new, there were options that could be discussed.

“We think of the world of Much A Brew; we don’t think this is going to be a major competition for them, ”said Board member Billy Singleton. “Much A Brew moved directly into an existing building… These two companies are building from scratch. “

Singleton said both projects will create jobs.

Kanter said the incentives are important as the city competes with other places to consider.

“For the town of Clanton to develop, this is something we will have to do,” said Council member Awlahjaday Agee.

Kanter said cities that have offered incentives have “done well” in the area of ​​economic development, and those that have not struggled to increase the tax base and opportunities.

“It is much more expensive to catch up than to stay ahead,” he said.

A timeline for the completion of the projects was not discussed during the meeting.

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