The fences are set and construction is about to begin on the long-gestating expansion of Cullman Shopping Center. Along with a formal groundbreaking set for 2 p.m. on Thursday, October 2 at the development, officials also plan to announce a major new anchor tenant.

The 50-year-old, U.S. Highway 31 development is currently anchored by Belk, JC Penney and Books-A-Million. The plan is to fully renovate and restore the existing facilities, then expand the development with new construction on the back side behind the vacant Food World location.

According to Cullman Economic Development Agency statistics, the project could create approximately 600 full- and part-time jobs once it is at full size.

Officials plan to announce the second new anchor tenant for the project at Thursday’s event. Dick’s Sporting Goods was previously announced as a new addition to Cullman Shopping Center earlier this year.

The Dick’s announcement satisfied one of two contract requirements, by executing a lease with a national retail tenant for a space in excess of 33,000 square feet in less than 12 months from the agreement. The second requirement is to execute a lease with a national food chain operator in excess of 40,000 square feet.

Along with the new additions, officials confirmed many existing tenants such as Belk and Shoe Dept. have extended their commitment to the redevelopment project, which will increase total square footage to more than 325,000 sq. feet of retail space. The company is also planning a full-scale renovation of the existing facilities to bring it up-to-date and in line with the aesthetics of the expansion.

Dick’s Sporting Goods’ lease is for a “custom designed” retail store that will anchor the upcoming expansion of the center, which is owned by Birmingham-based developer MRP. Officials say the store will be “the first of its kind” as part of a new effort to specialize locations to fit the local market.

In addition to representing a major reinvestment in the north Cullman property, the Cullman Shopping Center project also marks the city’s first-ever foray into a retail tax-sharing agreement as part of the recruitment incentive package.

The council agreed to a tax-sharing agreement with MRP last year worth up-to $6 million. Under the deal, businesses in the development will still pay sales tax, though the city will pay back some of those funds for a set period of time. The deal only affects city sales tax (1.75 percent) and does not include education taxes.

Current estimates show those amounts would total approximately $276,000 paid back via a portion of existing sales tax the first three years, with as much as $800,000 produced (and split) in the subsequent seven years from new development. The city also approved $1.8 million in infrastructure upgrades for the project earlier this year.

Merchants Retail Partners manages several large-scale developments across the southeast, including the Tiger Town retail development in Opelika. Tiger Town is anchored by big box tenants such as Bed Bath and Beyond, Dick’s Sporting Goods, Kohl’s and Target.