Gulf Shores officials have postponed a decision on a proposed tax incentive program aimed at drawing year-round businesses to the city’s Waterway Village District and Beach Walking District, opting instead to gather more public input before moving forward. The program was introduced during the City Council’s July 6 work session, where it drew mixed reactions from residents and local business owners.
As proposed, the incentive would let eligible developers receive a rebate of up to 50% of new sales tax, property tax and lodging tax revenue for up to 20 years. Blake Phelps, the city’s director of economic development and public affairs, said the rebates would be performance-based, issued only after a project is completed, fully operational and generating new tax revenue for the city.
The program is designed to draw destination restaurants, mixed-use developments, entertainment venues, boutique hotels and specialty retail, with the retail component targeted specifically at the Waterway area. Developers would need to apply through a review committee that scores projects on factors such as capital investment, job creation, public improvements, architectural quality, local ownership and year-round operation, with higher-scoring projects eligible for larger or longer rebates.
Mayor Robert Craft said the council needs more information before moving forward and wants residents to have a chance to weigh in as well. The city will hold a public input session July 21 at 10 a.m. in Council Chambers, with the City Council expected to revisit the program at its July 27 meeting. The proposal comes as Gulf Shores also begins a 16-month process to update its long-term development, transportation and land use plan through 2045.