Pelham passes economic incentives for Edgar’s Bakery and Waldo’s Chicken and Beer

By DONALD MOTTERN | Staff Writer

PELHAM – Economic incentives that will help finalize deals with upcoming businesses in Pelham were finalized and approved during a regularly scheduled Pelham City Council meeting on Monday, July 15.

The two agreements in question specifically concern a new retail location for local mainstay Edgar’s Bakery and a new Waldo’s Chicken and Beer. Both of these new establishments will represent early flagship locations within the upcoming Pelham Central Park project development, which is slated for construction directly in front of the Pelham Public Library.

Speaking to the council at the previous July 1 work session, Pelham’s Economic Development Director Michael Simon described the forthcoming project as one that has been in the works for quite some time and which has involved both Edgar’s Bakery and Waldo’s Chicken and Beer from an early stage.

In total, the construction efforts of both new businesses and surrounding infrastructure is estimated at approximately $5 million.

The first of the two passed incentive agreements is brokered with Edgar’s Pelham LLC, of Edgar’s Old Style Bakery Inc., and is intended to ease the economic impact on the company while constructing their new retail facility which will span between 3,500-3,700 square feet upon its completion.

That agreement with Edgar’s calls for a sales tax revenue share over a 15-year period, starting with 75 percent for the first decade and scaling down to 50 percent for the subsequent five years. Additionally, there is a proposed 50 percent rebate on the non-educational portion of property taxes for a decade, along with a potential $100,000 rebate on acquisition costs after one full year of operation.

“The closing is imminent and will occur (this month),” Simon said. “Then (Edgars) will subsequently purchase the property from the developer (HCI Pelham), who will begin the site work and the parking lot and build the pads for Edgar’s and for Waldo’s Chicken and Beer and the other entities that would take those parcels.”

Simon highlighted that Waldo’s request for assistance was also aimed at offsetting its own construction and initial operational costs.

The city’s incentive plan with Waldo’s consists of another sales tax revenue share model that calls for a 50 percent share of their sales tax generated after opening for 10 years or for a total of $425,000—whichever metric is reached first.

Once constructed, Waldo’s Chicken and Beer will feature an approximately 3,500 square foot building with an operational drive-thru and expanded parking lot.

Both agreements are contingent upon timely construction and operational milestones. Edgar’s must begin construction 12 months after closing on the property and begin operations within 18 months, while Waldo’s will have the same 12 months to begin construction but will have until 20 months after closing to begin full operations.

“(The extension for Waldo’s is being given) because of the drive-thru and the slightly larger development that Waldo’s is going to be built on—with access from the north road,” Simon said. “As well as that, they are doing all of their own infrastructure, whereas Edgar’s is being done by the developer. I feel those extra two months are just trying to provide a small window there.”

The approval of the two incentive agreements follows the Council’s passage of Ordinance No. 519 at the July 1 meeting, which declared the property that constitutes the development as surplus and served as the final step in the process to sell it to HCI Pelham, the developer of the project.

Additionally, the Council also performed a first reading of the measure to approve the renewal of an electric franchise agreement with Alabama Power Company which will, upon passage, continue until Aug. 5, 2054.

In other news, the council also passed the following items as part of the July 15 consent agenda:

• The appointment of Councilmember Rick Wash as the council liaison to the Pelham Board of Education
• Entered into an agreement with Uniti Fiber, LLC to provide internet services and “off-network” internet services for the Pelham Civic Complex and Ice Arena
• Declared aged, older vehicles owned by the city as surplus
• Accepted a bid from Gillespie Construction, LLC for the Industrial Park Drive Turn Lane Extension and Water Main Replacement project.

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