Marc Millis, Academy's senior real estate manager, left, chats with Cullman City Council members Jenny Folsom, Clint Hollingsworth and Andy Page Monday, March 27, 2016

The Cullman City Council approved an $800,000 sales tax revenue sharing agreement Monday for Academy Sports + Outdoors to build a new store in Cullman that’s expected to generate $270,000 annually in new revenue. 

The Texas-based retailer plans to start construction on an $8 million, 62,000-square-foot store off Lee Avenue Southwest in February 2018 and open in the fall, said Marc Millis, Academy’s senior real estate manager who flew in from Texas for the council meeting.

“When I first came to Alabama, I said we need to put a store in Cullman. This has been a project four years in the making,” Millis said.

The store is expected to create 100 new jobs and create $270,000 in new annual sales tax revenue, plus more tax revenue from the construction materials, business license and ad valorem for Cullman.

In exchange, Cullman would remit back to Academy $800,000 of its sales tax, paid in seven annual installments up to $110,000 and $30,000 on the eighth year, or half of the sales tax revenue. Local schools would continue to receive sales tax money from Academy’s sales.

Additionally, the city will cover the removal of a storm pipe and installation of a new sanitary sewer line for the store as part of the agreement.

The agreement also includes protections for the city. Academy must begin construction within a year of Cullman’s approving the agreement, and the retailer must pay its monthly sales tax before it can request that the city remit a portion back. 

Councilman Johnny Cook emphasized the agreement would simply involve new money Academy was generating by locating in Cullman — sales tax revenue the city would otherwise not have from its sales. 

“Welcome to Cullman,” added Councilman Clint Hollingsworth.