The Scottsboro City Council approved a shared sales tax agreement with Hutton, a development group out of Chattanooga, Tennessee, at its meeting Monday evening. The council approved the agreement with a 4-1 vote, with councilman Greg Mashburn being the only opposition to the agreement.

Hutton representatives Jamey Flegal and Kevin Jennings attended the meeting and presented the council with three options. The first was a $350,000 up front investment. The second option was $400,000 over five years. The developers would receive 100% of sales tax generated up to $80,000. Anything above $80,000 would be split between the city and the developers. The third was $500,000 over 10 years, and that would be a 50/50 split between the city and developers.

The council chose to take the second option. Flegal and Jennings projected the restaurant to be a $4 million annual sales producer. They said that was a conservative projection because the average unit volume for this restaurant chain is $5.5 million.

Mashburn cited concerns with traffic in the area as the reason he opposed the shared sales tax agreement. He also had concerns about a traffic signal at the location of the potential restaurant.

The Hutton representatives said the development was contingent on the light and said it would be a catalyst to open doors for a second phase behind the restaurant. Flegal and Jennings said they were thankful for the amount of traffic Scottsboro has along Highway 72, because they would not have come to the area with this project of there was no traffic.

Scottsboro Mayor Robin Shelton said he was excited about the council’s decision on Monday night. He said they have cleared the major hurdle in recruiting the business to Scottsboro. He also said the tenant could draw other businesses to the area. Shelton said the next step would be a legal process that would take anywhere from 60 to 90 days.

Then there would be a site plan that would need to be approved by the planning commission. He said all that would start around the first of the year. Shelton said there would be about a four-year construction process. His target date for the completion of the project is August or September of 2020.

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