Town sets public hearing for Piggly Wiggly tax incentive agreement

By John Underwood / john@gulfcoastmedia.com
Posted 5/21/19

LOXLEY, Alabama — The Loxley Town Council will hold a public hearing at its next meeting Monday, June 10 to discuss a proposed tax revenue sharing and incentive agreement with Manning Inc., owners …

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Town sets public hearing for Piggly Wiggly tax incentive agreement

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LOXLEY, Alabama — The Loxley Town Council will hold a public hearing at its next meeting Monday, June 10 to discuss a proposed tax revenue sharing and incentive agreement with Manning Inc., owners of Piggly Wiggly.

Officials broke ground this past November on a new 30,500 square-foot Piggly Wiggly Cost Plus facility, with an additional 7,200 square feet of retail space, which is scheduled to open at some point during the summer at 1078 S. Hickory St., across from Loxley Town Hall.

Ahead of the store’s opening, which at this point should be sometime in July or August, officials are looking at tax incentives in which the town will make monthly payments to Manning equal to 50 percent of the net town sales tax proceeds collected by the town during the fiscal year.

In return, according to the terms of the agreement, Manning Inc. would agree to us “commercially reasonable best efforts” to ensure 80 percent of the total leasable square footage on the property is continuously leased to commercial tenants.

The agreement also places restrictions on who the property can be leased to, stating that the property cannot lease space to any massage parlor, hot tub facility, tattoo parlor, adult book store, off-track betting, charity bingo or other facility used for gambling.

Manning Inc. also agrees to maintain at least 31 employees, at least 15 full-time, maintaining a payroll of at least $529,000, which includes all wages and other compensation paid to all employees.

The Manning family opened their first grocery store in Mobile County in 1972, then purchased the existing Baldwin County Cain’s Piggly Wiggly stores in 2016. In addition to the Loxley location, the Manning family owns Piggly Wiggly stores in Foley, Fairhope and Spanish Fort, along with eight locations in Mobile County, five in Mobile, one in Saraland, Chunchula and Mt. Vernon.

In January, the town approved a tax incentive agreement with the owners of Buc-ee’s Travel Center off of Interstate 10 at the Baldwin Beach Express. The town also annexed the property into its limits as part of the agreement.

According to that agreement, within 30 days of annexation, the company agreed to a one-time payment to the town of $50,000, along with annual payments of $25,000 over a 20-year period.

In turn, the town will provide the company with a “tax-incentive payment” of 37.5 percent of the sales taxes collected by the company, and 25 percent of the fuel taxes collected by the company.

In other business May 13, the council:

•Adopted an ordinance to amend the Loxley Zoning Ordinance to re-zone property on Roserun Road from A-O (agricultural – open space) to B-1 (general business district).

•Adopted an ordinance to amend the Loxley Zoning Ordinance to re-zone property at I-10 andn the Baldwin Beach Express from A-O to B-1.

•Approved a resolution authorizing the sale of a surplus utility trailer.

•Approved a resolution for review of the Municipal Water Pollution Prevention Program Annual Report and agreed to maintain a $35,000 budget for sewer rehab and apply for a USDA grand/loan for waste water treatment plant upgrades and pond rehabilitation.

•Tabled action on a resolution declaring an unsafe structure and public nuisance on South Walnut Street until the June 10 meeting after the owner told council members the unsafe structure is set to be demolished the week of May 27.

•Tabled action on a resolution declaring an unsafe structure and public nuisance on South Oak Street until the July 8 meeting after the owners asked for a two-month extension to find someone to tear down the unsafe structure.

•Tabled a resolution declaring an unsafe structure and public nuisance on Union Avenue East to the Aug. 12 meeting after the owner maintained he would have the property cleaned up in three months.

•Approved the recommendation of an alcohol license to the state ABC Board for the Family Dollar Store on South Hickory Street.

•Approved a grass mowing bid of $97,578.80 with Rotolo Consultants Inc.

•Awarded a resurfacing bid with Patterson Construction in the amount of $307,260.

•Approved a bid from Barker Products for a lift on a garbage truck in the amount of $4,144.64.

•Awarded a resurfacing bid with HCL Contracting LLC for resurfacing work in the amount of $25,000.

•Approved a 5 percent cost of living raise for town employees.

•Approved the removal of an island at Timber Ridge Subdivision.

•Rescheduled the town’s work session, normally held the last Monday of the month, to Tuesday, May 28 because of the Memorial Day holiday.