Tuscaloosa Sweetens Largest-Ever Incentive Package for “Project X” at McFarland Mall Site

The largest tax incentive deal in Tuscaloosa's history got even sweeter on Tuesday as elected officials continue to work with developer Stan Pate on the ambitious and still-secretive redevelopment of the McFarland Mall on Skyland Boulevard.

As previously reported by the Thread, Tuscaloosa approved a $65 million tax abatement deal with Pate in May 2024 for "Project Encore." That's the codename for Pate's mission to bring new-to-market retailers and restaurants to the old mall site, now that its last tenant, Dollar Tree, has been demolished.

The largest such incentive in city history does not include any upfront money to Pate or the businesses he's courting; instead, it would return the tax revenue generated by tenants on the redeveloped site to Pate. He calls it an eat-what-you-kill plan.

Until Tuesday, the city had capped the maximum abatement back to Pate at $65.1 million over a 25-year period. Now, the businessman is closing on a top-secret tenant for part of the McFarland Mall site in a pursuit they're referring to only as "Project X."

Get our free mobile app

No details have been shared about the Project, except that it will be a 20-acre parcel within the larger McFarland Mall site and could be a game-changer for that part of the city.

On Tuesday, the council voted to amend the "Project Encore" McFarland Mall incentive agreement in light of the ongoing pursuit of the still-secret "Project X." The measure passed 5-2, with councillors Norman Crow and Lee Busby voting against it.

This removes the former $65 million cap on the tax revenue which could be returned to Pate, making a record-setting deal even bigger.

Now, instead, Pate has a 5-year window to close the deal. If he's successful, the taxes generated on the site will be abated for 30 years, with no limit.

That money only flows to the developer if the project succeeds, though.

"I've made the decision to take some upfront risk," Pate said. "Some people under a confidentiality agreement know what Project X is - it's going to be a heck of a financial challenge, but I'm going to take it."

The council approved a separate $35 million incentive package for Pate in the Alberta area on Tuesday. During a public hearing discussing both projects, the businessman said he has been thinking about the legacies of others and what his will be.

He said that as he considers the McFarland Mall redevelopment, he is thinking about Ward McFarland, a man he called a visionary risk-taker, as well as his business partner Jimmy Hinton Sr.

More than anything, though, Pate said he's thinking about his late father, for whom the decorative interstate bridge over McFarland Boulevard is named.

"I have the privilege to redevelop that site in the shadow of a bridge that the governor and other people chose to name after my father," an emotional Pate said. "I can't fail there."

With the "Project X" incentives approved and seemingly limitless potential - and risk - ahead for Pate, stay connected to the Tuscaloosa Thread for updates on the McFarland Mall work and other exclusive coverage of restaurant and retail development in West Alabama.