DAPHNE, Ala.—Academy Sports and Outdoors is considering a move to Daphne, but the retailer asked for an exemption to the sign ordinance and proposed a revenue sharing measure that would help the retailer pay for improvements made to city …
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DAPHNE, Ala.—Academy Sports and Outdoors is considering a move to Daphne, but the retailer asked for an exemption to the sign ordinance and proposed a revenue sharing measure that would help the retailer pay for improvements made to city roadways.
The arrangement was first discussed at the finance committee meeting on Monday and was carried over to the council meeting by Councilman Ron Scott.
The retailer proposed a deal where it would keep 1 percent of the 1.5 percent sales tax for the City of Daphne for up to 15 years, or until the retailer has been paid back the $1.9 million it will put in to make improvements to U.S. Highway 90.
Scott said no decision had been made yet as to whether the finance committee would recommend the deal to the council.
“The finance committee did not make a recommendation. We made a recommendation that we sent it to the June work session to discuss the revenue sharing,” Scott said.
He said the city would greatly benefit each year from a store such as Academy being within the city limits.
“On an average, [an Academy Sports spokesperson says the retailer] does $20 million a year in sales. We are looking from that standpoint at $300,000 that will be coming to the city,” Scott said.
The retailer would keep $200,000 worth of the projected $300,000 yearly sales tax revenue for up to 15 years until the retailer was refunded for the improvements made.
“If it was not paid off in 15 years they would have to eat whatever was left,” Scott said.