Tuesday, December 18, 2007

Opelika’s Expo Center takes shape on paper

The Opelika City Council wasted no time Tuesday approving an ordinance authorizing a development agreement and lease agreement for Silver Companies’ Celebrate Alabama project.

December 5, 2007

The Opelika City Council wasted no time Tuesday approving an ordinance authorizing a development agreement and lease agreement for Silver Companies’ Celebrate Alabama project.

On Nov. 20, Silver Companies CEO Larry D. Silver announced his company would build a vacation destination in Opelika called Celebrate Alabama to be built along Interstate 85 stretching from Exits 64 to 66. Celebrate Alabama, dubbed a major retail, entertainment and attractions destination, is expected to span more than 535 acres and when completed will create approximately 5,000 jobs with a capital investment approaching $1 billion, according to Silver Companies and city officials.

City Attorney Guy Gunter said the project ordinance would grant an incentives package.

“It addresses two things: 1-the sharing of revenues and 2-that the city pledges $15 million in contribution to the Expo Center,” Gunter said. “Silver will pay all the operating expenses, and the city will be authorized to use the Expo Center 10 days of each calendar year.”

According to the ordinance, the city will provide financial incentives to the company, which include a sharing of non-educational ad valorem (property) taxes, non-educational sales taxes, lodging taxes, rental or leasing taxes, taxes on alcohol and tobacco and business license fees. The agreement also states that the city will not pay more than $15 million for the acquisition and construction of an Expo Center.

City Administrator John Seymour that 15 acres would be deeded to the city for the building of Opelika’s Expo Center. He said, “The city will build the Expo Center and lease it back to the company, and they’ll operate it.”

Under Article 20 of the Expo lease agreement, it states that for a period of 25 years after the commencement date that the city will not construct, erect, fund or support in any fashion any competing exposition center or convention center in the city with the exception of the city’s existing relationship with the Retirement System of Alabama in connection with the Marriott Hotel and Conference Center at Grand National. It also states that the tenant, which is Celebrate Alabama Expo Center at Opelika LLC, will not own, develop or operate any competing exposition or convention center within a 60 mile radius of the property for a period of 25 years after the commencement date.

And under Rights to Name in the agreement, it states that the city and Celebrate Alabama Expo Center at Opelika LLC acknowledge that Silver IP Rights Inc. is the sole owner of the names, “Celebrate Alabama” and “Celebrate Alabama Expo Center at Opelika.”

It states that the right to name/or rename the property belongs to Silver IP Rights Inc., which include the right to sell or license, on a permanent or temporary basis, the naming rights or sponsorship rights for the 115,000-square-foot Expo Center.

It continues to state that the name of the center may be changed or new names added from time to time without need for approval or consent by the city or Celebrate Alabama Expo Center at Opelika LLC; provided however that the name shall always contain the word, “Opelika” and shall not contain the name of any other city in the State of Alabama.

Silver Companies is expected to break ground in Opelika during the first quarter of 2008 with grading of pasture land taking about 18 months. The project is expected to take about eight to 10 years to complete with the first phase tentatively done in 24 months.