Monday, December 17, 2007
Capps Farm to be anchored by Kohl’s
The developer of the Shoppes at Capps Farm has secured a heavyweight to anchor its lifestyle and retail shopping center to be housed along 62.85 acres between Gateway Drive and Interstate 85 in Opelika.
June 22, 2007
The developer of the Shoppes at Capps Farm has secured a heavyweight to anchor its lifestyle and retail shopping center to be housed along 62.85 acres between Gateway Drive and Interstate 85 in Opelika.
A 68,000-square-foot Kohl’s department store is slated to open its doors in October of 2008, according to officials with Capps Farm developer DeBartolo Development, LLC.
In addition to a multi-screen movie theater on its property, DeBartolo is expected to enter into lease or property sales agreements with national and regional stores and restaurants like PetSmart, Circuit City, Staples, Bed Bath & Beyond, Hastings, Barnes & Noble or Borders Books, LifeWay Christian Books, Michael’s, Red Robin Gourmet Burgers and Cheddar’s, as stated in a “Memorandum of Understanding” between the City of Opelika and DeBartolo.
The Opelika City Council approved the memorandum during its council meeting Tuesday. Property transactions are expected to be finalized in October, and site work is expected to begin thereafter. When Phase I and II of the project is complete, the center is expected to stretch approximately 821,971 square feet with capital investment at approximately $125 million. Tax revenue for the city is expected to generate $7.4 million.
A portion of the Memorandum of Understanding states that the city agrees to form a cooperative improvement development district, with which it will share sales tax revenues.
“There is virtually no risk to the city,“ Economic Development Director Al Cook said. “The city agrees to share half the sales tax up to 25 years or when $15 million in revenue bonds is reached, whichever comes first.“
The memorandum stipulates that “The city will cooperate with the district to facilitate the issuance by the district of revenue bonds in such principal amount as shall be necessary to net $15 million for use in acquiring, constructing and installing project improvements. The bonds will be paid over a period not to exceed 25 years and will be secured solely by the payments to be made by the city to the district … As an incentive to induce DeBartolo to acquire and develop the project and pursuant to such incentives agreement, the city will agree to pay the district an amount equal to 1.5 percent of the gross sales generated by the project for use in paying the principal of and interest on the (revenue) bonds … when the bonds are fully paid or defeased, the city’s obligation to share sales tax revenues with the district shall terminate.“
The memorandum further states that bond proceeds will initially be placed in escrow with a trustee bank and will be released from escrow for use in paying costs of project improvements on the date that Kohl’s first opens its store to the public for business.
“This is a very good deal for all concerned,“ Councilman Dr. William Lazenby said of the Shoppes at Capps Farm.