City Council - Regular Meeting

All this Monday, June 22nd meeting to order and Madam Clerk, please call the roll.

Council President Middlebrooks.

Here.

Council Pro Tem Driver. Here. Council Member Schultz.

Here.

Council Member Smith.

Present.

Council Member Lovell. Present. Council Member Murphy.

Present.

Council Member McClinton.

Here. All right, with everyone present, if everyone will please rise for the invocation by Councilor Murphy and the pledge by Councilor Schultz.

Thanks, everyone, to bow their head. Oh, gracious God, thank you for the opportunity you've given us each and every day. As we approach Independence Day and the celebration of 250 years of our nation's independence, we thank you for all the men and women who have fought and sacrificed for this great nation. We also thank you for those who have championed freedom, equality, and opportunity for all people. We are grateful for the leaders and servants and champions who have came before us and helped shape our nation and community we enjoy today. As we can conduct business for the city, we ask for your wisdom, discernment, guidance. Grant this council with the knowledge and understanding needed to make the best decision for our citizens as we receive information. These are many blessings I ask in your son Jesus' name I pray. And all that agree, say amen.

I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

OK, members of council received a copy of the agenda. Do I have a motion to adopt the agenda? A motion to approve to adopt the agenda. I have a motion and a second. All in favor, say aye. Aye.

Opposed?

The ayes have it. First up, we have the fiscal year 2025 audit presentation. Dr. Lopez.

Good evening. Tonight, we're gonna have our, as you know, back in December, we went through an RFP process to hire a new auditing firm to conduct our annual audit. Basically, where we started up from last year, if you remember, we had about eight findings, multiple auditor entries and adjustments. In December, we did that RFP, RFP, and we hired Moulton and Jenkins. They are a company that basically has over 700 state and local government clients, including over 180 cities. In January, we started the audit process. We've been working since then. One of the things I do want to say, though, about the city of Hoover finance staff is how conscientious they have been. They are a staff that wants to learn and they want to help, and I feel like we're on the right track. is when it comes to City of Hoover Finance. Our goal going forward is building redundancy, hiring qualified people and people who are wanting to learn and train. I'm going to introduce shortly the audit director on this account for the city. There is not a final act for yet, but we hope to have one in the next couple of weeks. With that, Crystal Stell, she is the audit director, and she's going to give a short presentation on the status of that audit.

Good afternoon, everyone. Yes, I apologize that there is not a draft here for you today, but I do want to kind of reiterate some of the things that you just heard from Melinda. This year has been unique. Anytime that you change auditors, there's a little bit of getting to know each other, making sure that you gain the true understanding so that you can actually opine on the financials. So it's usually a little bit slow go the first year, maybe even the second year. But this year, we have seen the management take tons of ownership, trying to make sure that everything is clean, everything is thorough. There have been many times that we've handed things back and they come back with more support. you don't always get that. We can tell that these are individuals that are trying their best to make sure that this year is the year that everything gets cleaned up and everything looks as it should and there is plenty of support for those numbers. I will say, Speaking of all of the cleaning up that they are doing, we are still very confident that you're gonna have an unmodified opinion. Everything has not been completed, so obviously things could change, but an unmodified opinion is a clean opinion. We have found no fraud. We have found nothing being misappropriated. These are simply just things that we have had a lot of GASBs come out in the last few years and people not knowing how to implement certain things can cause problems. So with that being said, this year you're gonna see prior period adjustments. What those are, they fall under GASB 100 as a correction of an error. And the only thing it is is guidance wasn't prepared. I mean, guidance wasn't followed correctly. So those numbers have to be gone back over and put back into a way that they should have been originally. I believe that Melinda had mentioned there were about seven or eight different findings last year. This year, there's only one. The only reason you even have the one, and it is a material statement, is due to the fact that we have so many prior period adjustments. What that ultimately says is the dollar value of these things, they weren't timely caught and corrected before the audits. At this point, your audits from prior years were already done. There's really nothing you could have done to get out of a prior period adjustment at this point and not have a material weakness. However, I wouldn't anticipate that there would be one next year if things continue to move in the fashion that they've been moving. Management has been an absolute pleasure to work with. There's been no disagreements with management. To our knowledge, there hasn't been any consultations with other auditors. So it is moving smoothly. I know that it's, kind of an extended period of time, but we felt that it was really important to really focus in on this first year and make sure that everything got cleaned up and is presented as well as possible so that we're not finding more stuff when it comes to next year's audit.

Crystal, when did you say we can expect the finalized version?

We are believing in two weeks that you'll have a finalized version.

Very good. Our next city council meeting is July 13th. Will you be with us then to present that final version?

July 13th. I will check my schedule, but yes, I am absolutely happy to come back and present this at one of the meetings. What we do is we We have a little play on the MDNA, and we do an ADNA, which is our auditor discussion and analysis, to kind of come back and hit the high level of what you're gonna see in your ACFER, since the ACFER is such a massive document. It's just kind of touching on government-wide versus the fund level. We'll hit the general fund, because obviously everyone wants to kind of know what's been happening year over year. So yes, sir, we will be back.

Very good. Any further comments or questions from council? Mr. Schultz?

You used the term clean up a couple times in the beginning of your remarks. Can you elaborate on what you meant by clean up?

Okay, so cleaning up, when we look at everything, you know, you have statements that continue on year over year. They don't close out, and there are statements that do close out. So things that have come through recently, those new GASBs that I was speaking of, GASB 87 and 96, that have to do with leases and sabitas. there is a portion that sits on the statement of net position. So that number doesn't go away year over year. If guidance was applied incorrectly, then that number will change. So when I say clean up, it's more of an evaluation under the guidance and determining that things that were previously put on under that guidance that really shouldn't have been put on are being removed so that they're now properly stated.

Thank you. Any further comments or questions for counsel? When she returns on July 13th, we will then open it up for questions from the public, and we will have that posted online as well once we get the finalized version.

Okay.

Thank you so much.

Absolutely. Thank you.

We had no one sign up for public comments, but at this point, I will open the floor up for anyone that has a public comment at this time. Seeing none, Mr. Mayor, is there anything you need to add?

I would just like to add, uh, we had the, uh, flag raises for the two 50 and, uh, just want to invite everyone to the, uh, fourth on the first. So July 1st, which is next Wednesday will be our big celebration, uh, honoring America's two 50th birthday with expanded fireworks, Guinness book of a world record. We hope of 5,000 Coca-Cola cans simultaneously being opened. And, uh, A lot of activities for kids. It's gonna be a lot of fun with expanded fireworks. Six to nine, nine o'clock fireworks. Hope we have a packed house. Thank you.

Thank you. Thursday we met for a work session where we went over each item individually in detail. So for the consent agenda, it's normally no discussion on those items unless anyone wants to remove an item for discussion. Those are items one through 14 on the agendas. Council have any items that they want to remove? Is there anyone from the public that would like to remove an item from the consent agenda? Mr. City Attorney, if you'll read the consent agenda.

I'm sorry, did we adopt the agenda then?

No, sir. You got to read it first.

The first item is the payment of bills. The second item is approved minutes for two prior meetings. The third item is a resolution approving an alcohol license for a gas station. The fourth item is a resolution authorizing the mayor to execute a successor co-trustee agreement concerning a charitable remainder trust that is attached to Aldridge Gardens. The fifth item is a resolution authorizing the mayor to execute a grant agreement with the Alabama USA semi-consensual commission. The sixth is a resolution authorizing the mayor to execute a contract with Luminarts Entertainment for this connected to Hoover celebration of the 4th of July. The seventh item is a resolution authorizing the mayor to execute an agreement with Microsoft Eight is a resolution authorizing the mayor to execute a change order concerning construction in the sidewalk project. Item nine is a resolution authorizing the mayor to execute a purchase casualty insurance coverage with traveler's indemnity. 10 is a resolution authorizing the mayor to execute an agreement with Tokyo Marine for the purchase of cyber liability insurance. Item 11 is a resolution authorizing the mayor to execute an agreement with Global Aerospace for an unmanned aircraft insurance policy. Item 12 is a resolution authorizing the mayor to execute an agreement for property insurance coverage with Alliant Insurance. Item 13 is a resolution approving the revisions to the personnel policy relating to the fire department. And the 14th item is a resolution authorizing budget amendments for the fiscal year ending September 30th. Those are all the items on the consent agenda.

Mr. President, I make a motion to approve the consent agenda.

Second.

I have a motion and a second. All in favor say aye.

Aye.

Opposed? The ayes have it. Moving on to the regular agenda, ordinance number 262703.

This is an ordinance that amends municipal code section 8453, and it relates to the licensing of mobile food units in the city.

Mr. President, I make a motion to adopt ordinance number 26-2703. Second.

I have a motion and a second. This will open up a public hearing on this item. Any comments or questions from the council? Comments or questions from the public on this item? Being none, we will close the public hearing. We have a motion and a second. Ms. Harris, if you'll call the roll, please.

Tim Driver. Aye. Council Member Schultz. Aye. Council Member Smith. Aye. Council Member Lovell. Aye. Council Member Murphy.

Aye.

Council Member McClinton.

Aye.

Council President Middlebrooks.

Aye. With seven ayes, the ordinance is adopted. Ordinance number 262704, Ms. Waldron.

This is an ordinance to amend the zoning ordinance for the city concerning the regulations relative to food trucks.

Mr. President, I make a motion to adopt ordinance number 262704. Second.

I have a motion and a second. We will open up the public hearing for this item. Any comments or questions from council? Any from the audience? At this point, we will close the public hearing. Ms. Harris, if you'll call the roll.

Council Pro Tem Driver. Aye. Council Member Schultz.

Aye.

Council Member Smith.

Aye.

Council Member Lovell. Aye. Council Member Murphy.

Aye.

Council Member McClinton.

Aye.

Council President Meadowbrooks.

Aye. With seven ayes, the ordinance is adopted. Moving on to resolution number 885726. Mr. Walker.

This is a resolution declaring a violation of the weed and other vegetation on property that is a nuisance at 3491 Flintshire Drive.

And we will go ahead and take it in tandem, resolution number 886026.

This is a resolution also declaring a weed and vegetation nuisance at a building located at 2337 Tyler Road.

Mr. President, I make a motion to approve resolutions 885726 and 886026. Second. Second.

I have a motion and a second. We will open up a public hearing. Any comments or questions from council on these items? Any comments or questions from the audience? We will close the public hearing and have a motion and a second. All in favor say aye.

Aye.

Those opposed? The ayes have it. Moving on to ordinance number 262706.

This is an ordinance declaring certain property owned by the city to be surplus and not needed for any municipal purpose in directing the disposal of that property.

Mr. President, I make a motion to suspend the rules for immediate consideration. Second.

I have a motion and a second for immediate consideration of ordinance number 26-2706. Ms. Harris, if you'll call the roll.

Council Pro Tem Driver. Aye. Council Member Schultz.

Aye.

Council Member Smith.

Aye.

Council Member Lovell. Aye. Council Member Murphy.

Aye.

Council Member McClinton. Aye. Council President Middlebrooks.

Aye. The seven ayes. We will now consider ordinance number 26-2706.

Mr. President, I make a motion to adopt ordinance number 26-2706.

Second.

We have a motion and a second. This is a public hearing, so I'll open up questions from council. Questions or comments?

Mr. Attorney, this is the same property that we had a contract on before.

It is.

And we made that property... We held the same vote back then. Does it not carry over?

Well, that was a contract that has expired.

Right.

And the city has kept $15,000 in earnest money under that contract. And so this would be a different contract. Same terms, basically. And the... Another $10,000 in non-refundable earnest money to keep this open, and I understand the purchasers just had a time issue in getting an SBA loan.

I guess my question was we declared a public purpose prior, and I was wondering did it not carry over to now?

It would. It would.

We're just making sure.

No harm, no foul in doing it tonight.

Thank you, sir.

Okay.

Any other comments or questions for counsel? Any from the public? Seeing none, we'll close the public hearing. Ms. Harris, if you'll call the roll, please.

Council Pro Tem Driver. Aye. Council Member Schultz.

Aye.

Council Member Smith. Aye. Council Member Lovell. Aye. Council Member Murphy.

Aye.

Council Member McClinton.

Aye.

Council President Middlebrooks.

Aye. With seven ayes, the ordinance is adopted. Next, we will set public hearings for July 13th for the following. Resolution number 8863-26, Mr. Waldrop.

This is a resolution granting conditional use approval to allow an expansion of the existing church building for property located at 6 Green Hill Parkway.

And resolution number 886426.

This is a resolution that grants conditional use approval to operate a paramedical tattoo practice at 1713 Montgomery Highway.

Next, we have resolution number 886126.

This is a resolution declaring a nuisance and unsafe conditions exist on property located at 5823 Ryan Village Drive.

And finally, we have a public hearing set for July 13th to consider an economic development proposal for property identified as Stadium Trace Village Phase 2 and Phase 3. But tonight, we will hear a presentation from the developer along with the city staff. Dr. Lopez, your name is listed here. Didn't know you were presenting on this matter, but I think Mr. Munger has notes for you.

I did not place your name on the agenda.

Mr. Munger?

Nothing like a surprise presentation, right? So this evening, as the council president stated, we are gonna be giving an overview of the stadium trace phase two, three project. Again, you've traditionally heard it referred to as two and three as separate projects. Cumulatively, they are being brought together, so you'll sometimes hear one or the other reference, but the agreements that you have before you that are being distributed are in reference to both of the undeveloped parcels that you have. But I thank you for allowing me to present this evening. We have a number of guests with us tonight from Broad Metro, as well as some of their design consultants that you'll be hearing from. They have prepared a great amount of data as have we as a city staff. And I appreciate the mayor, the city attorney, and his additional partners that have contributed to this agreement as it is presented to you this evening. And I think you'll be impressed by some of the items that we have to present to you this evening. But this is a process that's been going on for a number of months since we reengaged with Broad Metro on the property under their revised agreement. And anytime something is brought before council, we always want to be extremely sure that we are one thorough in our assessment of this. And to that end, as a staff, we undertook a great deal of work Evaluation of existing data performance data on phase one including our tax data ad valorem down to the parcel level and modeling of future revenues and impacts not just taking what the developer presented to us, but actually creating our own models to either validate or challenge some of those assertions because we want to be sure that what we present to you is something that is factually correct and something that you feel comfortable acting upon. So with that completed, some things we did look at that I'll get to in a moment with phase one was all the way down to visitor level data from some of our analytics companies, market gap analysis regarding the uses that are proposed and how they may fit into our matrix within the city, and then taking a look at that and seeing if this is something that the city could consider whether the benefits as proposed were equitable and preferably leaning towards the city long term. And I was pleasantly surprised to find a number of things about phase one that I'd like to present on very briefly to you before I hand it off to Broad Metro just to establish a factual baseline of where we are currently. So Ms. Harris, if you would advance the slide, please. All right, so we've got seven years of baseline on phase one. You've got 19 assessed parcels there, and not all of them have been built on, of course, which we'll talk about with Village Green a little bit later, but most recently, just back in January, the hotel finally came to fruition. So what we see here is a utilization rate where now you've built up to almost 3.5 million visitors each year. And one of the things that we looked at is where do those people come from? The data says 61% of them don't live in Hoover, which I think would surprise a number of people. That's a little bit more than other parts of the city. I'll kind of validate that in a minute. Combined public benefit ad valorem to all entities as well as sales tax retained of nearly 7.5 million and the benefit to the city directly ad valorem plus retained sales approaching 5.5 million. Next slide please. So this is an output from Placer AI, which is one of the analytics platforms that we use that aggregates consumer data by visitation. Project site is, of course, denoted with the yellow star, and these are people that over the last 12 months have visited the location two or more times. You know, that's quite a bit that skew outside our city limits, which I don't have denoted there, but I know Each of you know the length of the city limits as it spans east to west. Very heavy impact from Birmingham. A little bit heavier impact than I expected from Tuscaloosa, personally. But my point in establishing this is simply that this is a diversified development as it currently exists. It certainly serves a great number of of patrons that live in the city, but it's also drawing on a somewhat regional basis with a heavy lean towards Hoover, but about 8%, if I recall correctly, of those visitors are actually out of state, so those would probably be people during SEC and other travel ball tournaments and things of that nature. Next slide, please. So again, just kind of showing you the ramp up in time. For purposes of modeling, to be conservative, I've used a 50% number for visitation. And similarly throughout the presentation, you'll notice perhaps one number being higher in the developer's presentation and city presenting a lower number Again, we want to be conservative about these things, make sure that we're modeling something that's a very conservative or realistic scenario, and so there will be a little bit of differentiation there. So back in FY19, of course, there was a lot of construction still going on, and then you'll see a doubling and then similarly kind of a steady growth pattern over time, holding up with the 8% out-of-state that I mentioned previously. Ms. Harris? and the ad valorem. So again, as parcels are divided, those are reassessed by the county, and as they're built upon, those are again reassessed based on current use, and you now see that this last year, and this won't be a surprise, The city schools, as we know, comprise almost 54% of the total ad valorem, and that is a combination of the direct millage that they receive, and then I believe it's a 13% share based on actual enrollment of the countywide educational tax. So as of this last fiscal year, that totaled out to around $457,000 that has been realized by the school, and that benefit alone Cumulatively, over the seven years that we've examined here, $1.95 million to the Hoover City Schools, a total ad valorem take of $3.64 million. And again, this is a property much like phase two and phase three that pre-development was generating effectively zero, somewhere in the low single to thousands range, if I recall correctly. Ms. Harris? Sales tax performance has continued to ramp up. Again, we've had additional outlets come online a little bit slowly at first. I know the project build out was delayed somewhat, especially with the later phases that came on board, but now that we're very close to full subscription there, the development is not only meeting its bond obligations, but is actually triggering the sinking fund in the bonds where those are redeeming early and actually over-performing in that respect. So the city benefit, again, we are 50-50 with the developer on this for the initial period. of 20 years, or 15 years, excuse me, and we are currently at 5.49 million cumulative the city has realized from this. Next slide, please. So just four quick conclusions about phase one. One, we've demonstrated it is a proven regional draw, regional being, especially on the western boundary, you see that we are bringing people into the city and realizing tax dollars that are not just derived from people here in the city of Hoover. 3.5 million visits in a year is very impressive. And May 2026 was actually the highest visitation month that we have had at the development. So that's not something that's just stagnating. We're continuing to see growth there. And if anything, I would say that the parking situation is possibly a constraint at this point, which phase two and phase three would greatly help to alleviate. The schools are the primary benefactor so far, which is not unexpected. Again, the city is rebating part of our incentive, part of our tax take to the developer for a period of time. The increase in ad valorem value at 430 plus percent is something that realistically has pushed the school up to being sort of the top dog on this as far as what their tax yield is while we continue to also reap the benefits. The hotel, which we only have just a few months of data on currently with it opening in January, it's 201 rooms and we are projecting based on just the first few months and also the developer numbers around 320,000 a year that will come back to the city based on our 3% lodging rate, and then the $2 per night room fee. Those are not shared under phase one. So that is a increase in unencumbered revenue. So a few years from now, we'll look back and see that bar chart accelerate a little bit as we continue to get a larger percentage of the proceeds of the development. The public return on dollars, the city has pledged a certain amount, more of a pay-as-you-go type incentive structure under phase one. Right now, the public return, $7.4 million, plus the Hoover City Schools benefit versus a little bit over five million in rebates that the city's paid, so we have been in a net surplus since very early in the agreement, which is FY22. But all that said, I think it's always great to establish a factual baseline. I think you would be very well reasoned if phase one was underperforming to be very skeptical of anything that might attach to it. But phase two and three, as I'll let the developer speak to momentarily, that's something that I think you all agree not just builds on what you have here today, but will actually mutually benefit those areas for a variety of reasons. I definitely would like to leave that part of the discussion to the Broad Metro representatives and their consultants, because I know there are several items of significant public interest that they would like to hear about. And with us tonight, we have Mr. Jim Massingale, Director of Development for Broad Metro. And he's got around 40 slides, I think, for you, and also a video. So I will turn it over to you, Jim.

Good evening, Mayor Durzis, council members. I'm Jim Massengill, Director of Development with Broad Metro. Tonight, I've got some of our consultants from Walter Scholl Engineering, Mark Simpson, and also from Skipper Consulting, Darrell Skipper. They're gonna help me through this presentation, speak to some of the more specific items having to deal with the storm drainage, water management system, and the traffic. We're here tonight to discuss the proposed development agreement for Stadium Trace Village phase two and share how this next phase builds on the project that's already been delivered and delivering significant benefits to the city of Hoover. Before we get started, I want to help get the ball rolling tonight with a short video, if you could. Ms. Harris, if you could play that video.

What does success look like? It looks like families gathering over dinner, patients receiving care close to home, businesses opening their doors, jobs being created, and a community growing stronger every day. Not long ago, Stadium Trace Village was an ambitious vision. To bring it to life, Broad Metro invested over $150 million to develop the property. Today, it has become one of Hoover's most vibrant destinations. More than 30 businesses now call Stadium Trace home. From restaurants and retail to healthcare, hospitality, fitness, financial services, and more. Together, these businesses support more than 500 jobs and generate over $73 million in direct sales annually. That number grows each year. Since 2019, the amount has exceeded $252 million. The impact extends beyond the development. Every transaction, every hotel stay, Every doctor's appointment, each one contributes to a stronger local community and helps support city services, schools, parks, and public safety. That's the power of success. Now, Broad Metro is building on that momentum with Phase 2. The plan for Village Green has evolved into a place where the community comes together for shared experiences, music events, pop-up markets, and festivals. Development will include new healthcare facilities, expanded retail, hospitality, professional office spaces, senior living options, enhanced connectivity, and one of the region's most exciting entertainment destinations, Chasing Aces, an entertainment venue for families, friends, and corporate outings. Ten acres of scenic water management ponds will improve the conditions of Scout Lake, complemented by attractive landscaping, a boardwalk, a multi-use, and a nature trail network with outdoor learning spaces. This parkland will be enjoyed by residents and visitors alike. Peridot Place will be extended to provide important local access and traffic relief for neighborhoods connected by Brock's Gap. This is strategic growth, thoughtful growth, growth designed to create lasting value for generations. Broad Metro's continued investment is more than development. It's an investment in Hoover's future, measured not only in dollars but in opportunity, quality of life, and community impact. The future looks bright. Let's build it together. Okay. Thank you.

Ms. Harris, if you could get the next slide. Continue. I think we have a slide of the stadium trace one.

There we go, right there, okay.

So six years ago, this property was a rough, undeveloped track of land. Today it's become one of Hoover's most attractive commercial destinations, drawing visitors from across the greater Birmingham area and beyond. Stadium Trace Village now almost serves as an unofficial gateway to the Hoover Met. It's the first thing you see when you turn off of 150. Let's briefly look at what phase one has accomplished. Next slide, please. As you can see here, see these items, the vision was simple. Create a designation that serves Hoover residents while capturing this for spending generated by one of the Southeast's most premier sports and event complexes. Stadium Trace 1, excuse me, Stadium Trace 1 was a very difficult site. We moved over one million yards of earth and rock. We devoted over five acres to the storm drainage system in phase one at the head of Scout Creek. And let's see, what has emerged is a true mixed-use district, nationally recognized brands and local businesses working together to create a destination. Next slide, please. So phase one represents over $150 million of investment by Broad Metro, created over 300 construction jobs, 500 permanent jobs. Some of these numbers we've been over just briefly, 73 million in net taxable revenue per year and over 250 million since 2019. Again, we've influenced over three and a half million visitors. to help Stadium Trace be what it is. Next slide, please. Most developments hope for these results. This project already is producing them. The demand has been proven. The customer base is here, and the growth trajectory remains strong. One thing that we've learned is that successful projects evolve. We have listened, we've adapted. The concept of the Village Green has become something larger and more useful for the community. Not simply a venue, but a gathering place. It will feature a performance stage in front of an adaptable viewing lawn, a two-level commissary with daily food and beverage service, adjoining pedestrian way, several event festivals, art festivals, pop-up festivals. We've also connected the village through pedestrian street concept to a retail village that will serve both merchants and artists. Additional parking will be provided alongside an adjacent retail, future retail or restaurant parcel. Next slide, please. While phase one established the destination, phase two builds on its success. It will also address infrastructure, environmental and transportation needs and the benefit of the broader community. There we go. This is the concept map for Stadium Trace phase two. I'd like to go over some of the users. Each component serves as a different purpose, but together they create a connected destination unlike anything else. Chasing Aces is a high energy technology driven golf and entertainment destination where people of all skill levels can play interactive games. A par three course, take a swing in the home run dugout, batting cages, eat great food, and socialize in a relaxed and family-friendly environment. Next, healthcare continues to be a major economic driver. South Haven Surgical Plaza will be a 25-bed ambulatory surgical center. with professional medical office space and diagnostic center. Along with South Haven's plans, their property includes opportunity for future expansion. This project creates long-term, high-paying jobs and expands medical services available within Hoover. Out parcels A, B, and C, that you see in the pink, hold the potential for a 200-room hotel, additional retail, and restaurant development. The parcel to the left, the parcel to the left on the plan will be the home of an independent living, assisted living, and memory care facility, creating housing options that allow residents to remain connected to Hoover through every stage of life. Next slide, please, Ms. Harris. Okay, many people see the parcel for phase two as just a wooded area and expect that we can just start building. This property, as you can see on this, this is an overlay of the mining features outlined in red. This is a rough, rocky terrain site. This area is riddled with mines, mining features, underground tunnels, air shafts. that have been left since the time of cold extraction that we will have to remediate by two state and federal regulations in order for this project to be developed. These features have been ongoing for over a century now and have served as an impediment to any future development or any development of this site. Next slide, one of the most, next slide please. One of the most exciting parts of this project is not the vertical buildings, but what we get the opportunity to do to transform areas to be community assets. There's a group including the storm water system, surface water quality, enhanced recreation, and creates a beautiful natural environment for Hoover residents. At the center of this effort is Scout Creek and Scout Lake. A comprehensive water management system has been designed to address these problems throughout the watershed. The proposed development will create over $4 million state of the art stormwater management system and control of control and sediment basins, including approximately 10 acres of of water quality ponds that will filter Scout Lake is about two and a half acres. So we're installing 10 acres of water storm drainage structures upstream of the two and a half acre Scout Lake. Along with these functional facilities, we have engaged Nimrod Long, well-known, renowned landscape architect to assist in aesthetically enhancing these ponds so that they are functional for boardwalks, overlooks, outdoor learning spaces, and things of that nature. The phase two development will create, will be a place where residents can walk, exercise, learn, enjoy nature, and experience a side of Stadium Trace Village that extends far beyond shopping and dining. The investment reflects a belief that great development should leave a community with more than buildings. It should leave lasting public spaces that improve quality of life for generations. At this time, I'd like to introduce Mark Simpson with Walter Scholl, who has extensive background in this project and is aware, has served for many studies prior to this. I'd like for him to come up and explain some of the details of our stormwater system.

Good evening. I think you can go to the next, yep, okay. So I'll talk a little bit about Scout Creek and what our overall plan is. So if you look at that graphic up there, you can see Scout Creek, which is the green and the purple and the yellow. That's the main stem of what we call Scout Creek. But there's two other tributaries, we call them unnamed tributaries, that are coming from the 459 area. And in total, the drainage area of Scout Creek, just before it hits Scout Lake down there, is about 300 acres. So we're almost a half a square mile of total drainage area. So it's a significant creek. The area north, or actually the area of 459 and north of 459 makes up about 172 of those acres. So really about half of the drainage area is coming from 459 or north. A little bit of it comes from north of Highway 150, and then the rest is really the site as a whole. Go ahead to the next slide, please. Okay, so based on the size of the watershed and some of the soil characteristics out there, the volume of water that's being carried by Scout Creek, the creek has a known tendency to transport sediment downstream. And previous work that Shoal did on behalf of the city in 2017 identified Scout Creek really as a significant source of sediment for Scout Lake. And so you can see just a little excerpt from some of the work that we did on what's called the Bank Erosion Hazard Index for that. If you'll go on to the next slide, please. And so really if you get down a little bit more detail here, we don't have to go into the detail of what the study said, but basically Scout Creek is and was or currently is contributing some sediment downstream. All right, continue on. And so you can see, From the study, we identified the full length of Scout Creek, but not just that. We've got those two tributaries, those unnamed tributaries coming in from 459 that all combine ultimately into Scout Creek and create that high flow, high volume issue that's creating the sediment downstream. All right, continue please. All right, so I'll talk a little bit about the stormwater management approach. So it's really twofold what we're doing. First, the project will meet the city's stormwater ordinance for onsite stormwater management. But secondly, and just as importantly, We recognize the historic sedimentation issue downstream. And so we're gonna incorporate the measures that are intended to significantly improve those conditions downstream. And the key to the design is that all of the offsite water that's currently coming to Scout Creek in addition to the onsite runoff, will all get routed through new stormwater features. And those features are gonna, which I'll talk about in just a minute. But that's important because the project is not just managing runoff from the site, it's actually providing stormwater treatment and flow reduction for the larger watershed as a whole that's already draining through the property. So it's a very important point with the overall stormwater management scheme. So in total, we've got five stormwater management ponds. And I'll say, I'll add a little color to that. It's not really just five. There are some additional on-site smaller water quality features that will be incorporated there just to help with some of the sedimentation as the project gets built out over the years. So five ponds total one of those ponds will maintain a permanent pool so it'll be a permanent lake feature and and as a Jim spoke to just a minute ago Nimrod's gonna be turning that into a really a water quality feature for the site So it'll be a an amenity of the site, but it'll have a very functional purpose as well So benefits to Scout Lake Because Scout Creek has historically contributed sediment to Scout Lake, routing the creek and its tributary flows through this on-site pond system provides a real meaningful benefit to the conditions that exist there today. And it's an important distinction. The project is not simply avoiding additional impacts. It's introducing stormwater infrastructure that should improve the existing downstream sedimentation. Next slide, please. I won't go into the numbers too much, but I'll tell you what you're looking at right here. So the orange up there is what we would expect the stormwater flows to be today. The green would be the flows once the project is built. And you can see across a range of storm events, there's a significant reduction in the amount of water that we would expect to go downstream and ultimately into Scout Lake. So it ranges from about a 23, 24% reduction up to a 50 plus percent reduction for the larger storm events, the 100 year storm events. And I'll finish up by saying that we've done the formal technical report. The city's outside consultant has reviewed that and ultimately the report was approved by the city.

Thank you, Mark. Great job. When we engaged Walter Scholl for this work, we emphasized the importance of to over-design the stormwater system. And I think you heard, you saw some of the results of the study and the design that Shoal has done and the reductions because they've left those stone unturned, so to speak, no detail invented. If we could, transportation improvements are, and connectivity are among the most important public benefits to the project. This isn't simply access for our development. It's new connection that helps accommodate future growth throughout Western Hoover. At this time, I'd like to introduce our traffic consultant, Daryl Skipper of Skipper Consulting. And I'll mention while Daryl comes up that Daryl did the original traffic study for Stadium Trace Village 1. He's done several studies for other projects and for the city in this area, and most recently did the study for the Exit 9 interchange at I-459 at South Shadescrest Road. I'm going to have Darrell come up and speak to the traffic. Thank you.

Thank you, Jim. Again, I'm Darrell Skipper with Skipper Consulting. I think this is the third study we've done. The initial study for Phase 1 was one that we started. We did an update of that last year, and it included all the land uses being built out in Phase 1 and Phase 2 with the peridot coming down and ending in a cul-de-sac toward the southern end of phase two. What we've done this time is we have studied two impacts. One is a parallel place being extended down to intersect with Brock's Gap Road and also to determine what impacts the new interchange at Shadescrest Road will have on redistributing traffic in the area, in particular how it relates to this particular development. As Jim mentioned, we did the interchange justification study for the interchange and it have been involved in the design process since then through the traffic signalization and whatnot for the new interchange. As I mentioned, this particular update of the traffic impact study was done with the looking at Pareto Place being extended down to Brock's Gap. One of the first things we do when we get involved in one of these studies is meet with the city staff local jurisdiction staff, which we did meet with your staff to see what parameters they wanted studied. And they wanted to see what the impact would be for this roadway to be extended down to Brock's Gap. And also they wanted to see the impacts of the new interchange at Shades Crest. My understanding, the Regional Planning Commission within the last two weeks have given final approval on that. And we're hearing that they're gonna start construction here before too long with a targeted opening date of 2028, I think I was a boy when we first started working on this interchange. It's good to see one come on in my career. One of the things that came out of the last study we did last year was identifying intersections along Highway 150 and Stadium Trace that did need some modifications made to them to address some recurring things that are happening during the commuter peak hours in the morning and afternoon. As a matter of fact, the study that we had last year was approved with the understanding that all the roadway modifications outlined in that study would be incorporated into and implemented. Those are assumed as a part of what we've done now that they will be in place. There's been a couple things done, one by the Department of Transportation, one by the city that's along that list. As I mentioned, one of the things the staff mentioned is they wanted all the traffic counts on the existing intersections on 150 and on Stadium Trace redone because previous studies of that, the traffic counts had gotten a little stale. They were about 18 months to 24 months old. So we redid the traffic counts while school was in session. We're smart enough to know that the high school, the middle schools, and all generate a lot of traffic, so we make sure that those were done. The study did include all the land uses in phase one and phase two being implemented in place. We also wanted to see exactly what change extending Pareto Place down to Brock's Gap, how would it change people's travel patterns right now and how they wouldn't change the travel patterns and how it would serve. Because anybody that lives in communities that access stadium, I mean, Brock's Gap, are going to be interested in that. The city and the developer of that particular development out there along Brock's Gap were very, had a lot of foresight in making sure that there's no pedestrian, there's no residential driveways that are on that roadway. It's a collector roadway. It was built between Stadium Trace and South Shadescrest Road, and it was acted as a collector to collect traffic from the adjacent land uses coming onto it. And it's been very successful so far. Also, the new interchange is gonna change the way people, how accessible the area is, how convenient things are. The biggest benefit that interchange project coming on base, on board, is the intersection at 150 and 459. As you all know, during the peak hour, we have an enormous number of people going to that interchange to go to work in the morning and returning in the afternoon. And they just flood 150 between 150 all the way over to Shadescrest Road there'll be a dramatic change in the volume of traffic that's coming to that interchange in the morning, turning left on the interstate to go to work and jobs, which is good. The other thing was to identify any improvements that need to be made beyond those who were identified and been agreed to before. some of the intersections we restudied on this map show is intersections one through six. Those were existing intersections that we've studied in both efforts that we've done thus far. Intersection seven, which is the proposed intersection of Peridot Place and Brock's Gap. In looking at Future conditions, as far as the Shadescrest Road interchange impacts, the folks in Atlanta are going to be real pleased with that interchange being built, and so are the people in Hoover, because that is the primary route to the interstate system for them to get to 459. As I mentioned before, it's going to dramatically reduce the traffic volume on 150. Believe it or not, that'll be good for this development, because if we move some of it to somewhere else, then there's, it improves it. As far as the reason to extend this down to Roxcap, what is the purpose and need for doing that? Every highway project we get involved with the Alabama Department of Transportation in the city, the first thing we have to do is establish the purpose and need for why we're doing the project. It will certainly improve mobility and accessibility in an area. Years ago, there's some basic, and I see your city planner sitting here, and I know he's going to agree. There was some principles that our forefathers followed. You go to downtown Birmingham, downtown Montgomery, downtown Tuscaloosa, downtown Athens, or any street layout, everything is in a grid pattern. That didn't happen by accident. There was a reason for that. That was to give you accessibility and mobility from all directions, not just one. We've gotten away from that, and we end up with things like Highway 280 where we've got one highway, and everybody develops a cul-de-sac for their development, whether it's a church, whether it's a shopping center, whether it's an office building, a hospital. They've got a cul-de-sac, and it's totally reliant on that road, and that's tough to keep up with. The more interconnectivity you can have in your community, and I think your ordinances address interconnectivity of development, so you don't have these cul-de-sacs. And I know it's tough to do sometimes. I serve on a planning commission. I know it's tough when we want to connect to a road that's sitting there. What this will do is help distribute the traffic across multiple roadways. Stadium Trace won't be the only game in town. Also, the thing we always look at, too, are what emergency services. There are a lot of things that affect emergency services. If a road gets shut down for whatever reason it might be, we like to have an alternative to help those folks. As far as the distribution of traffic, one of the things that... We don't want to really encourage this traffic cutting through this development to go to work. We want them using the Shadescrest interchange. We want them to use the 150 interchange as they currently do, not necessarily cutting through here. In looking at the cut through traffic, and everybody in my multiple years of experience Everyone's always concerned about how you connect something and what impact it has on what's driving in front of your house, on your street, that sort of thing. In looking at what our potential would be for diverting people from Stadium Trace Parkway south of Rox Gap or how would we divert people, we look at travel times, distances, because the reason you take an alternate route to go to work or another route is to save time. And you look at time, time is a factor of the distance you have to travel, the control devices that are on it. Do you have a roadway that's got a low design? Generally arterials, the interstate system's the highest design, and arterials like Shadescrest, most of it wasn't designed, I think it just happened over the years, but Stadium Trace was built from scratch. believe it or not, as an industrial access route in Hoover a long time ago. So remember that. It's built as an industrial. Brock's Gap is a collector. It has not as high a character as the other. But in looking at that, we do think some people might want to cut through here to go to work. And if they do, that's fine. But we don't necessarily want, the road is not being built for that. It's being built for the convenience of the neighborhood that are in the vicinity to get to the development, not necessarily cut through it to go to work. You got ample for that right now. Staff felt like anywhere from 15 to 25% of the traffic that is currently on Brock Scout might cut through this road if we connect it. We took the conservative route and said, okay, we'll just assume 25% will be the number that we'll look at. So we did that. There will be some traffic that's along Brock Scout Parkway that comes to this development this way instead of going on over to Stadium Trace. Or if you're on the far end, next to Shades Crest, and we're building a new interchange, it might be quicker to go that way, because you're just doing a couple of rights. When we connect down to Rock Scout Parkway, The terrain is not flat. We're not in Dothan. We're not in Kansas. It's hilly. It's curvy. We have a lot of vegetation growing up there. One of the first things we need to do is make sure that whatever we put in there has clear sight lines. I want someone who's sitting on Peridot looking to the left, looking to the right, to be able to easily see any oncoming traffic. I like for the traffic that's on the roadway, Brock's kept to also see someone sitting there and maneuvering out into the roadway. So it needs to be some vegetation removed there. Fortunately, they own the property. So we're going to need to do some vegetation clearing. And then Nimrod Long needs to come in and put a landscape feature right there as we enter the property. We're also recommending a left turn lane be installed in a right turn lane to accommodate those maneuvers and not impact the through movement. The other thing we've suggested putting a traffic signal at that location. It's a real simple traffic signal. It just alternates between one side and the other side. The other thing is on Peridot Place, the extension part and the whole way is we have some traffic calming measures put in there. I think one drawing I saw a minute ago. showed a cul-de-sac. We've suggested that be a roundabout, not a cul-de-sac at that end. There's already a three-way stop on the first intersection coming in off 150. The next block is a four-way stop there. We have on-street parking through there. So naturally, the speeds coming through all of that section are gonna be relatively low. We want that to be relatively low because that's basically to accommodate the traffic that's in there going to and from the land uses within the development. Thank you. Jim.

Thank you, Darrell. As you can see, tremendous thought and detail has gone into the traffic design and proposed roadways to provide safety for the driving public, pedestrians, as well as connectivity and convenience for the community. And along with that, I'd just like to emphasize one other point that I know Darrell made, and it was up there, but just, as he mentioned, in Stadium Trace Village, currently, when you come in off 150, we have the three-way stop, and we know that's a little bit cumbersome, and part of our design and all is to turn that into a full roundabout where we have continuous traffic flow there. And I know that's a, We've had a lot of comments about that, and we've heard them, and those things are included in Daryl's design and will be implemented and built as this moves forward. Broad Metro, for Stadium Trace 2, Broad Metro anticipates investing over $200 million in over the course of the development of the project. Public participation helps unlock site challenges and infrastructure improvements and provides broader community benefits. Some of those benefits, we anticipate over 300 construction jobs, creating over 250 permanent jobs, approximately $50 million in annual sales tax, expanded ad valorem tax base based on the sizable capital investment, tourism growth, support for the Hoover Met and Finley Center, and the enhancement of the quality of life, amenities, and some of the things you've heard from before. The return extends far beyond the project boundary. More jobs, more visitor spending, more revenue, more reasons for people to choose Hoover. In closing, over the last seven or eight years, seven or eight years ago, we presented a vision, Stadium Trace Village. Today, we can proudly point to what has already been delivered. The restaurants are open, the hotel welcomes guests, the businesses are thriving, jobs are here, the tax revenue is being created. Phase two allows us to finish what we started. It addresses longstanding site challenges, creates critical infrastructure, improves environmental conditions, expands recreational opportunities, and strengthens one of Hoover's most important growth quarters. So tonight, Mayor Durzis and the council, we thank you for the time to present. Broad Metro has invested in Hoover. We live in Hoover. We believe in Hoover's continuing success. Phase one demonstrated what is possible. Phase two completes the vision that makes it even better. Tonight, we respectively are asking for consideration of our development agreement so that we can move forward together, continue creating economic opportunity, community value, long-term benefits for the citizens of Hoover. Thank you for your time.

Thank you, Mr. Mastigal. That was a lot of information. Mr. Munger told me beforehand that his goal was to give us so much information that Mr. Smith would not ask a single question.

We'll see how successful I am. We'll see how successful. I do think any time you were presenting to an elected body, with a high level of public interest, I know there would be a lot of scrutiny on this. So I did try to lean this presentation out. I would offer you, after this meeting, prior to the next meeting, if you'd like to see the raw calculations, raw data, I've tried to make this a little bit more aesthetically pleasing, I'd be happy to run you through it in some additional detail. But Ms. Harris. So I think Jim's part of the presentation, getting to hear from Mr. Skipper and from Shoal probably was a little bit more of interest most of you and probably the public at large. But again, this process is about not just a sort of stipulation on the part of the developer, but also an analysis on the part of the city to inform the council's decision. So what I've prepared here is a number of slides that speak to what phase two is encumbered by, some of the difficulties that I think I heard Jim say this was a hard site or something like that. I'd like to define that a little bit more. I think he may have undersold that a little bit. based on some of the data that we have in the file. So Ms. Harris, if you would. So what you see here is a LIDAR hillshade relief of the project site or the primary part of the project site, Scout Lake being at the southern left corner that you have there downstream. You basically have about a 200 foot elevation change from the bottom of that gully right there up to the top. Ms. Harris. And those of you that have kind of ventured out there, you can see it. It's essentially, it's actually labeled on some of the old maps as a named ridge. And so this is not an easy site to work with, even when taking into account, even before taking into account, rather, the past mining activity that you have on the site.

Next slide.

The earlier drawings and renderings of Scout Lake did not show it exactly like this, but in aerials you often notice the sedimentation that was talked about extensively in the Shoal Report, and this is a photograph submitted by a resident a number of years ago. We'll leave either to the Hoover Sun, perhaps WBRC. This is a repetitive condition downstream. That's with... these developments with functioning ponds at current condition, but they are still seeing impacts. It is a low point. Water has always flowed downhill and will continue to, but as pointed out by the gentleman from Shoal, now water that's traversing that area will not be running downhill unencumbered, scouring the banks and carrying sediment. It'll be flowing through one, most likely multiple, detention and settlement basins before it reaches that area, which invariably will greatly improve water quality while meeting our stormwater regulations. Next slide, please. So one of the things that has been very interesting for me is reading the mine reclamation grant data and applications that have been submitted by Broad Metro. They're around 500 pages apiece, just full of very detailed information about what the plans are for this site, but also what it takes to make this site pad ready. Pad ready is generally in an industrial sense. bringing a pad site up, waiting for vertical construction. But the same principle applies to a mixed-use development. There's still a sunk cost to invest in the land, to bring it up to a point where you can undertake a style of development that unlocks the potential of the property, allows it to be utilized for its highest and best use, and gets you to that point of vertical construction. And I think all of you realize that the level of density that Hoover is currently, most of the easy sites are gone. There's a reason that this site is still here. Part of it is the marks that you see here in black and white, the squares, at least nine vertical mine shafts throughout the property. The Ys are portals, which would be air vents, things of that nature. And there are other features that are still to be surveyed that would also have to be remediated under this project by the developer with assistance from the federal government through the Department of Labor. They have secured some amount of grant funds that will partially pay for some of this remediation. But if you'd like a order of magnitude for this, some of the geotechnical borings that have been done at strategic locations around the property to ascertain the depth of these different shafts have shown voids as deep as 72 feet below grade. And those have to either be undercut or a pump full of grout, essentially concrete fill in order to make a geotechnically sound pad on which to build from. So again, this is privately owned land. These are costs that the developer must wrangle with in bringing forth that vision that they laid out in phase two. Next slide, please. So harkening back to phase one, I talked a little bit about what that property was doing for the city and the schools and the community at large before, which was very little. You go from a few thousand dollars up to 850,000 just in ad valorem a year. And then of course creating now sales tax revenue, supporting jobs and creating places that we enjoy going. It's a nicely maintained development. It's a high quality of a build standard and a quality of maintenance that greatly exceeds many other outlets that we have because of I think local development. We have people that have an interest, a mutual interest in seeing developments within the city thrive And high quality of design draws people because it adds quality of place. On this second site that we have comprised of two parcels, one being that primary parcel that was just shown outlined in red, the second of which is around 28 acres that was purchased from U.S. Steel to allow the extension of Peridot Place and also some stormwater management. on that one, those parcels are just encumbered in a number of ways prior to getting to development. You have in priority one, the mine reclamation. Mentioned before, you've got voids, subsurface as deep as 71 feet, as shallow as seven. Each of those has to be explored and remediated individually on that property. Again, it's a great location. It's right next to the interstate. There's a reason that this property has sat in an unproductive state for as long as it has. The stormwater issues, again, that is a legacy impact. Water throughout that watershed has always traveled to that point, to that series of lakes downstream, but as this council has demonstrated previously and as the mayor has told me from day one, we are in the business of fixing problems. Cities exist for a reason, and if we can remediate an issue while also satisfying our regulations, I think that's something that deserves very serious consideration. But right now, you've got 139 prime acres within the city that are essentially undevelopable. When that property transacted from USX to Broad Metro, it was reassessed. of the 41,000 and change of ad valorem generated per year, I think 38,000 of it is just from that one smaller property. The other has I think a forestry exemption applied to it, generates around $300 a year for 100 acres of land right off the interstate. So with this post-development scenario, We applied common values, calibrated and assessed against the tax data for adjacent parcels, taking into account use by function, as outlined in the master plan table, and tried to make a responsible estimate of what type of generation there would be. This was discounted substantially from what I think the aggressive scenario would be, and I think in an action-oriented scenario where we move forward with this project over 20 years the total public benefit on this project would conservatively be in the range of 64 million dollars a huge amount of that which will benefit the schools because a lot of these you know as opposed to phase one which is revenue bond driven they actually had bonds sold against it that the developer services based on the shared amount of revenue. This does contain some revenue generating portions, certainly lodging taxes and things of that nature, but it's mostly quality of life, medical, things we all need, things we all want in close proximity to us, but it's not necessarily the high level revenue drivers that you had in the first phase. That also plays into the traffic assessment. And as Mr. Skipper mentioned, those were evaluated based on the use and the ITE manual trip generation numbers for each of those uses. Next slide, please. So using some figures provided by the developer and also from the Department of Labor, I endeavored to subdivide up the hard cost associated with making this site shovel ready, pad ready, however you like to put it. Mine reclamation work, right now, You have just in the known fully vetted stage in excess of $5 million. Some of that does cross over into your standard site work. The stormwater reclamation items, again, in excess of $4 million, as mentioned in Jim's presentation. And then your roadway utilities and other infrastructure that includes sanitary and potable water as well as the new road and the roundabout in phase one, around $9.4 million. Again, some of those numbers They're not double counted, but I may have assessed more towards one function than another. I tried to balance them based on percentages of land disturbance. So going through the AMLR application that has been approved by the feds, you have north of $5 million, 5.8 million of AMLR funds that have been awarded with additional funds being sought by the developer, because it's believed to be that the total amount of remediation alone could be 15 to 20 million dollars, depending on the extent. One part that is very key to this, and it was mentioned broadly by Jim in his presentation about the city's participation, what is that styled as? And this is where I would say this comes back to a matter of function. and a matter of what items the city would like to see evidenced prior to investing in a project. Obviously the city always wants to protect the public dollars. We have an obligation to do so. The city traditionally does not invest any money upfront in projects. Usually it's more on a pay-as-you-go basis over quite a long period of time. On this project, because of the heavy infrastructure lift on the front end and the heavy amount of infrastructure, which is a area of traditional city participation, I am of the belief, and I think the numbers prove, that a upfront investment by the city of a lump sum contribution of $4 million is warranted. That would substantially secure funding to deal with the stormwater issues. at least in part, and to facilitate the road improvements that are there. But that $4 million is not in a vacuum. It's all part of the overall cap. So a dollar today is not a dollar 15 or 20 years from now. We all know that. That is also a tool that we use to negotiate down The total cap amount from some of the numbers that you've heard before, I've seen coverage that says at one time this was an ask that was significantly higher than what we're talking about today, two to three times, depending on what number you believe. But we've been able to rein that in partially with strategic investment on the front end, as well as front loading some of the things that would not exist if not for development on this project. So for example, permitting fees. The city assesses a very reasonable rate of $9 per thousand on that item, but by rebating a portion of those back to the developer, again, counting towards the total investment cap, we're able to front load and buy down the duration of this incentive agreement and get into something that I think you'll be pleased by the overall duration in comparison to some prior agreements. The developers also secured $1.5 million from Jefferson County Environmental Services to assist with the expansion of the sanitary service. And even with all those different buckets, at a absolute minimum, you're looking at 30 million additional dollars that will be incurred before the first building goes vertical on the site. That is inclusive of land costs. a substantial amount even under the most conservative scenario. Next slide. So the proposed structure is slightly different than what phase one entailed. You will see two documents in your folder, one being the phase one amendment, the second being germane only to phase two. They have differential percentages, but they all Contribute towards a shared goal, which is the completion of this development the sales tax sharing which is Estimated I've calculated it at 40 million dollars and growing Based on chasing aces and a few of the other sales tax drivers That would be shared over the 20-year duration at maximum 20 duration up to 60% the original site plan that we were presented did not have a hotel. The developer speculated that a hotel would potentially fit. The city benefits hugely from hotels. And so I did believe it was appropriate to incentivize at a higher level a potential hotel. Any percent of, 75% of the 3% lodging tax if a hotel is eventually built would be retained by the developer the city would retain 100% of the $2 nightly fee. And then of course, in both those instances after the cap is met, the cap amount which is $23 million, the city retains 100%. And based on early projections, I believe that that could happen in the range of 13 years, not 20. Construction materials and permit fees, alluded to this earlier. Again, if no development occurs, It's kind of a moot point. It's not something we were getting anyway. But by bringing that to the front end, we knock out nearly $5 million of that incentive amount and buy that down very effectively. The things that we do not have here that are positives for the city, continuing to be no ad valorem sharing. So 100% of the value that is created by activating this property is captured by the city, 6.5 mills, and more richly by the schools with a post-development scenario. The city has also built in significant pre-infrastructure contribution requirements, that's a lump sum of $4 million, that cannot be dispersed by the city if this is eventually favorably considered until after the property is closed upon, it is currently under option, It's my understanding. And also after circuit court validates the agreement to protect us against any future lawsuits that may come up for one reason or another. So only after validation could that money be dispersed. The city's also built in recapture provisions that are on a graduated scale based on certain milestones. Those are outlined, I believe, in 4.6. of your agreement, but those include things like starting vertical construction eventually, pulling a land disturbance permit within 180 days, but most importantly, because the stormwater element is what the city is substantially contributing to, there is a 18 month period which is paired with 180 day land disturbance permit and then a 365 day period for the developer to successfully complete on a substantial basis the stormwater remediation plan as presented. If they fail to do that, the city would have recourse to seek to recapture that money either directly or through withholding incentive payments otherwise. But again, this is not a matter of trust. It's a matter of preparing for a worst case scenario. Many of you served through economic downturns and I've worked through those as well. And the best intentions still need to be backed with solid legal footing. And I thank Mr. Waldrop and his team for assisting us in that regard. Next slide, please. So one thing that I mentioned earlier, just to refresh, phase one generates around $850,000 in ad valorem currently, cumulatively over the six year period, 3.6 million, 1.28 in growing taxable sales. Taxable sales actually increased almost 23% last year, and that doesn't factor in our lodging that just is coming online this year. So phase one is also a financing vehicle for phase two. The debt has been bought down substantially on this and the 23 million that is necessary from this on phase two and three, this separate and apart, our current agreement is running all the way out to 2039, and it's proposed that that extension would take us to that point. That adds four more years for the developer to capture an amount should they continue to grow their tax base successfully, which, again, further incentivizes completion of the Village Green and the continued success of the existing locations. That would increase that cap by $5 million, We are already at the same terms all the way up through 2035, so essentially this is deferring a second portion of this to equalize the city's revenue across that time. So with respect to the Village Green, there is a requirement in the agreement that the land disturbance permit for that facility be pulled within 120 days of the agreement being executed. And that is also tied to the cap increase and could potentially be actionable if we got to a point that that was necessary. Again, A lot of times the economics of these things have to make sense. This is not a city property, but it is a city-involved property. When we incentivize something, the city has a right to ask for certain things and to provide accountability for those things. I know the developer has worked through, I believe, three different architectural iterations of this, each of those at substantial cost. If you don't build it, they charge you anyway for design. But I think we do have an operator secured now. and a new plan that Jim touched on that they feel very comfortable with. And this captures the revenue in a way that withholds it unless they deliver on that item. Next slide, please. So again, focusing on the part that is new to the city. The city has many revenue sharing agreements on 50-50 type ACs. That's not a concept that's new to any of you. The upfront money, I think, is an item that is relatively new. Breaking that down, showing sort of how this will model out over time, again, based on very conservative assumptions, 1.5% annualized growth rate for ad valorem taxes. Those of you that have looked closely at your tax bill know that it's not necessarily tethered to reality, but I would rather be conservative on that front. So what you see here is that basically starting in a 2027 run of the city's lodging tax, sales tax, and ad valorem, a mix of all tax blends, that is how I get to the 13 years. Now, Would that 13 years actually be 2027? I would say most likely not. So it would still be 13 years. It would just be from whatever the effective date is of that first opening. But you'd be looking at around 13 years of the total 20 years. And of course, in the event of overperformance of some of these things, the debt would simply get relieved faster. because all of the dollars that travel within this phase two agreement, as well as phase one, are governed by a cap. So if the mix is changed, if a calculation is off, if certain land develops in a way that is more productive from a tax generation perspective than another, it's all still governed by the cap. The mix may change, because again, development takes a number of years, even when all things go right. Next slide, please. So this is, I think, my only spreadsheet excerpt, so I tried to make most of it visually interesting, but this is just kind of the scratch work on the estimated post-completion market values, acreage assessment class, and then the ad valorem per year on the full 72.6 mil basis and what that is modeled out to look at. We ran this a few different times through some different methodologies. This is the more conservative of the two at a fully built out scenario. And so again, as you saw with phase one, certain things coming online, it ramps. If it takes four years or five years, some of that will be determined by the developer themselves and the market saturation rate. At full build-out, you'll be looking at a property that generates in the range of $2 million for ad valorem annually, and immediately it will become more productive, because as I mentioned earlier, the crux of this property generates $370 a year. So this would be something that would mimic the growth on phase one that you've seen over a build-out period, however many years that may be. Next slide, please. So again, the city schools with the 56% and change rate being governed by their dedicated millage, plus the 13% of the countywide educational taxes over a 20 year period, including a ramp up in excess of $24 million of ad valorem taxes. Again, some of the uses in this phase are really higher valuation at completion than the already very valuable phase one uses. You pair that with 457,000 a year on phase one currently, which I do think will increase with the hotels coming online. already over a million from that area but by year four just on the undeveloped area this is factoring in for the build out pace I think by year four the schools will be generating over a million dollars just from the new development area from from this and we've kind of staged that that growth over a period of time Again, some of those things, models are only as good as the input. We did calibrate this in, for instance, the high-end homes that are proposed there. We tied those to some adjacent neighborhoods and their valuations and kind of worked outward from those based on existing valuations, applied to new construction values with a fairly healthy factor of evaluation. Deduction basically to allow a little bit of room for error just in case next slide, please So let's talk about the ROI on the four million dollars because that's the that's the new ish concept I think every natural question is where does the city derive that money from? So one, the timing of that that I mentioned earlier, validation through circuit court, if this does ultimately advance in July, You have to file that in court, you have to wait for a date, and it takes quite a while. So I think this would be something the council would have the benefit of budgeting in the upcoming cycle for. Also, I would remind you of some infrastructure wins that we have had recently, and the council was able to favorably consider an amendment to the South Shades Crest road project which we previously had a 50-50 and up split on that with the county. The county was able to consider some things that we were working on to include exit nine and other stormwater related projects and was able to take that project on wholesale. We freed up well north of $4 million by doing that even before it bids. So again, that's an obligation that comes off our books and I would suggest that the council strongly consider reapportioning some of that money towards another infrastructure-related improvement, such as remedying a legacy stormwater issue, as we've done in other places. When looking at the $4 million purely on a ROI basis, the city's return on this initial investment, if you consider this versus a inaction scenario, nearly a 7% or 7X return on that investment. Cities don't exist to just pile money up. We can't invest it. We can make infrastructure investments in our community. We can't invest it. an index fund or anything like that. But largely when the city has the ability to do so responsibly, I think adding an investment strategically that unlocks the potential of a property such as this and leverages a level of private investment such as what we're talking about, I think this is a very wise use of tax dollars. By year five, just really on the Chasing Aces revenues and a few other ad valorem pieces, even far before full development, we get our money back by year five. Total public benefit, including all authorities, being city, schools, county, state, $64 million over the 20-year period. The leverage, private to public, 200 million versus four million for the city, and everything after that is structured in a way that mandates performance. What we're talking about is essentially getting this property to zero for the mutual benefit of the city, the schools, and the developer, and doing it in a way that the public will actually enjoy. So the city revenue by stream is broken out, again, down across the bottom, of course, to the city, the municipality, The lion's share is sales taxes on this. There are a number of commercial properties on here, uses TBD on those, but they would be reflected in the PUD. Right now, part of the property What formerly was called phase two is C2, which is your general commercial district, and it supports the surgical center and some of the other uses that were proposed. But one of the conditions of the development agreement that you have before you is that just simply that the city commits to working in good faith with the developer on the submission of the planned unit development, which would fully entitle this property. But again, prior to having financial terms, that seemed perfunctory if we moved into that. So again, post-cap, there's a few other notes here that kind of speak to the same thing. Next, please. So five takeaways. Without action, substantial action, by the developer and without some city investment, I think this property stays where it's been for a long time, which is generating 41,000 a year. It's more than what I thought it would be when I first looked at it based on its physical condition, but that will be all. The $4 million upfront investment basically unlocks the value of 200 plus million dollars. And again, that is a heavily discounted number just based on the actual value of the uses we've outlined here. I think you could assume up to 300 million at full completion of the uses here. You have buy-in from the federal government. This isn't just something we've looked at and said, this looks interesting. When the federal government gives you nearly $6 million, you have to demonstrate a lot of credibility and have a serious plan of action. The developers outlined that for you, and I think you can see what they have lined up and how it interests Department of Labor, because they see it as something that not just for a tax generator for us, for a creator of jobs and with the medical uses, high paying jobs. So you have federal buy-in and that's always a positive thing. We have the ability to address a legacy stormwater issue. I much prefer the pictures and renderings that are shown of phase two post-development versus the Murky stormwater pictures of Scout Lake that I think all of you have seen many times before It's always good to fix things that are causing our residents hardship whether it's something that Was a direct responsibility of the city or just somewhere where we can step in and make a positive impact The schools received twenty four point six million dollars no risk the city has some degree of risk, measured risk. But the schools are a net collector and that's a positive. Again, that gives them stable revenue to function from. Schools are not intended to function with wild swings of sales tax revenue like some of you remember. from the financial crash in 08 when probation and things like that came into effect. Property taxes are staple taxes and I think that's a good thing. The city gets their $4 million back seven times. four to five years, depending on just some timing type things, but it's quick. So again, it's measured. I know I've hit this point a few times, but I don't want to under-emphasize. This is not something that I would say fits on most projects. This project is relatively unique in the level and ratio of cost of vertical construction to infrastructure and remediation. It's a site that in many cases would be called a brownfield or something similar. And I think there's a great case for investing in something to unlock this potential, to build on the success of phase one, and to bring residents something that fixes some issues for them, and also add something really positive to the community as a whole. So I think that's my last slide, unfortunately. I was disappointed we had 62 slides, but I think Jim had more. So I'll try harder next time. But again, I do, just making a little bit of light of this, I know it's a dense subject, but the math behind these deals is dense. I do hope this reflects sort of the rigor that we subjected this project to something that I know this is the first of two opportunities that we will have to present and talk about this, tonight being intended for presentation to council and also fielding questions that you may have. I would say, depending on the complexity of the questions, I may defer, go back, make calculation, make sure I give you a good answer. And just in going through this, I did spot two typos, both non-substantive for calculation purposes. But it's a lot of numbers here. So I definitely understand that this needs a lot more discussion, and I'm happy to meet and discuss with you individually over the next two or three weeks as you see fit. But at this time, I know Jim, you still up for questions? You can ask Jim some questions.

Mr. Munger, no one will ever accuse you of not being thorough. Thank you. I understand the mayor previewed this, so second time around, huh?

That's right. I move quicker when I'm scripted.

But I will say, looking at the crowd, the back row Baptist, I didn't see any head nodding going on. So that speaks to the interest of this project, that people do appreciate the information. You can never have too much information. We stressed that many times before. Rather have too much than not enough. At this time, I am going to open up questions or comments to council. I will ask the public, we will not open questions up to the public during tonight. I will ask that the city share these presentations online. And I will ask Mr. Mastigale, Mr. Munger, that you email the council these presentations, that we all study these and digest the information. The council likes to hear the feedback. Contact us. You can contact everyone at the council with one email address, allcitycouncil at hooveralabama.gov. and that'll go to each and every one of us. We welcome that feedback, so go home, study this information, digest it, and give us some feedback. At this time, though, I will open it up to questions, comments from council.

Mr. President, can I make a statement? So I won't ask any tonight. I think this presentation covered a lot of questions that I've seen by the public, questions that I've had in the past. So I will just really be taking time to just digest and ask any additional questions outside of this. So this is a statement I want to make.

Mr. President, I do have a couple of questions. I will try not to repeat anything that I already heard and just ask about the handful of things that I did not hear. And I apologize if I just my ears got tired during part of the moment. Is there a timeline for the traffic circle that you're going to put in phase one?

Yes, currently. So the city, your city staff has approved our land disturbance permit for the roadway and development of the site, conditioned upon some aforementioned items that Daryl talked about that were in that traffic study that we employed Daryl to do. One of them is the traffic circle, and those items currently are in design. with Shoal Engineering and Skipper Consulting. Some of the items involve the DOT for right-of-way permits on Highway 150, and also along with, correct me if I'm wrong, Darrell, but along with the right-of-way permits, we've got, since we touched the interstate ramps, we've gotta get some approvals from Montgomery, correct? So, and to answer your question, we would anticipate starting that work in the first quarter of 27, the roundabout work. Hopefully sooner, but that's the target date right now, which is roughly six months from now.

That's the traffic circle coming off of 150?

In Stadium Trace Village. That's the question, right, Mr. Irmer?

So, no, the question is about the one that's on Paradise Place in Phase 1 now. That's what I'm talking about. The one in Phase 1. Where the stop signs are currently. Yeah. My concern is just about continued safety issues there.

Should be starting in approximately six months.

Okay. Thank you. I do have a couple more questions, Mr. President. On Brock's Gap Parkway, where will the road connect exactly?

Okay. Darrell, what's the name of the street across Brock's Cove?

We will align it with Brock's Cove.

Yeah, currently, if you start down the hill towards Scout Lake, there's a cul-de-sac neighborhood on the left, Brock's Cove. So we will align the peridot with it so that those intersections match up. and tie in all the turn lanes, signalings, traffic, and also the pedestrian crossings and sidewalks that will be added and also exist currently on Brocks Gap.

So that's directly adjacent to the lake, but past the north ridge.

The roadway will be parallel to the lake and will tie into Brocks Cove so that that intersection is in full alignment.

Okay, thank you. And just one other question. So the development agreement that will be asked to consider addresses phases two and three. But unless I misunderstood, we really only heard about phase two tonight. What is phase three?

Okay, phase three consists of approximately 65 acres from... the extension of Peridot, and I don't know if we can pull the slides back up if we need to, but across the ridge to Stadium Trace Parkway. Phase three, which has been combined with phase two, will have approximately 10 acre mixed use site adjacent on the lower side, on the Stadium Trace Parkway side of the site. which would be mixed use, retail, can be retail or mixed use, other versions of other uses as well as retail. And then the top, you can see, I'm gonna point over here, you can see where the big geometric shape that says phase three, That could be, Brian indicated that we are looking at about 27 acres of high-end residential, million and a half to $2 million homes there, or some additional over 55 and assisted living opportunities there. The site, the shape to the right of that, right of that smaller shape could be it's listed there as well I can see it right here it's listed there out parcel site this is out parcel site that could be could be hotel site as well or commercial depending on how the larger site comes to fruition and The roadway will connect from, we have an existing roadway easement on the property that we're closing on in August for phase three that connects to Stadium Trace Parkway. So the roadway will come up and to that where you see the cursor's hand right there to a cul-de-sac. Phase three roadway will not connect to phase two by roadway due to the topography. If you remember, Brian showed a slide that showed the low point of phase two at the creek bottom at elevation approximately 455 and the top of that ridge at 655. So there's a 200 foot vertical descent which makes meeting a roadway standard for non-emergency services almost impractical.

I believe that answers my questions for now, Mr. President.

Thank you. Any further comments or questions?

Mr. President, would you like to take a short recess before I get started?

If you ask more than three, you owe everyone Chick-fil-A.

I've done that before. Just one for tonight. The Village Green How many stop orders did the city give to the broad metro for the Village Green project?

I don't know that I can... We had more than one, and we had several impediments that were... could be considered stop orders as well. So at least two written and other non-written stop orders.

Were those reasonable?

In my opinion, they were not.

Thank you, sir. Mr. Shultz, did you have comments, questions?

I have actually a comment on it. One thing that I've noticed is a lot of people are not aware of what happens here. We're going to have three video streams of the presentation, one separate. That's going to be with the city where people can actually watch Mr. Munger's presentation again and absorb it as well as us. I think it's really important that we do that. In addition to that, I have no other questions, just comments. Very encouraged as to what this is going to do for the schools. It's really, really encouraging what it's going to do as far as the ad valorem is going to do for the schools. I'm very happy to hear that.

Thank you. Mr. McClendon. Mr. Massengill, what was the, it's been a while since we've had this presentation, probably a couple years. What was the amount that the city of Hoover offered Broad Metro in an incentive package then?

It was approximately $60 million.

And Mr. Munger, what is that, what did y'all negotiate currently that you want the council to approve on?

Cumulatively, 28, between the two.

That's a big savings. About $30 million?

By my calculation, yes.

Mr. Munger. I'm sorry, go ahead. Mr. Munger, piggybacking off Councillor Driver's question as far as phase three. What we will see July 13th is the incentive agreement. We still have to come back before us at PUD to approve. And then that will answer some of the questions about what these sites entail and so forth, correct? Am I correct?

That's correct. So the master plan, Ms. Harris, if you have that readily available. This is, roughly speaking, the master plan, the color coded with the legend at the bottom. So that's similar to what you would see in a PUD map. Half of the site, what was formerly referred to as phase two, is entitled as a C2, so those are shovel ready in many cases at that point. And the city cannot, by contract, agree to zoning, but the city has agreed to work in good faith with the developer. The developer would be subject to go through all normal steps of the EPUD process, including staff review, planning commission, recommendation, and ultimately council consideration. I do think it's been made very clear that it's expected to look just like this. Very good.

That brings us to the end of our business portion. Any further comments or questions from council tonight?

Just one brief one, Mr. President. I did have the pleasure this weekend of serving on a panel of judges. Our First Lady, Stephanie Derzis, was a director for the first time of the Miss Hoover and Miss Hoover's Teen Pageant for 2027, and we selected some amazing young women to represent the city, and I can't wait for you to get to meet them. the new Ms. Hoover, Ms. Julia Schumacher, and the new Ms. Hoover's teen, Ms. Cambry Crumpton, and just can't wait for them to represent the city. They're going to do such a great job.

Good. Thank you. Anybody else from council? Mr. Mayor, did you have anything to add? No, I'm ready to go. All right. With that, we're adjourned.