Northport Council Approves Big Mike Incentives

With only one no vote from District 1 Councilman Turnley Smith, the Northport City Council tonight approved an incentive package to bring Big Mike's Steakhouse to property across U.S. 82 from the Walmart store.

Smith had moments before made an emotional recommendation that the council table the $4.8 million economic incentive package to allow council members time to sell the project, which he supports, to constituents.

His recommendation received a standing ovation from the 60 or so citizens who mostly showed up to oppose the plan.

One of those opposed was Tuffy Holland who has been a Northport resident since 1974. "This council, I thought would be more responsive to their constituents, but they're not" he said after the meeting, in vailed comparison to the previous council's controversy over University Beach Resort. Holland believed the meeting was adversarial. "I don't think they gave us enough time to study the developer's agreement."

Holland says a lot of people he has talked to want Big Mike's to come to Northport, but they are not willing to pay the price.

Scott Roland is the owner of Trinity Cleaning and Restoration in Northport. After the meeting he praised Councilman Smith for suggesting a delay on the vote until constituents and local business owners had a chance to study it. "I'm kind of neutral; I just came to see what the dynamics of it is. I do think the package is a little bit excessive what they are offering for the return." Roland says he is a Big Mike's fan, but he just wants the council to be cautious.

Northport Mayor Dale Phillips rode the wave of voter disapproval of the University Beach deal, but he believes this is a different situation. He pointed out that years ago a city could lure businesses with smaller if not no incentives but the economy and competition of today have changed that.

Big Mike's is expected to generate more than $4.8 million in annual sales and employ more than 35 workers.

The city plans to finance its investment through debt issuance. That is the process by which governments and other institutions secure funding for their operations and special projects.

Monthly rent payments, calculated at 5% of gross revenue, would be applied toward repaying the city’s investment until the debt is satisfied.

Big Mike's must agree to 20 years of operations and lease the property from the city. At the end of that time, they can purchase the structure for $100.