Work begins on site of new Chick-fil-A in Ridgeland
RIDGELAND — Dirt work has begun on what is expected to be a Chick-fil-A at Renaissance Phase IV next to the Costco Fuel Center on the Highland Colony Parkway.
This will be the third restaurant in the development following a Wendy’s location that opened in 2020 and a Walk-Ons sports bar across the street that is currently training and staffing employees.
When the Chick-fil-A project was approved in April, Community Development Director Alan Hart said the building met the city’s standards and had one of the biggest parking lots for a Chick-fil-A he has seen.
A portion of sales and ad valorem tax from the area will be diverted to the city’s debt service in financing Renaissance construction through Tax Increment Financing bonds.
A TIF is a creative financing mechanism that diverts a portion of sales and property taxes generated by a development to debt service. The monies will be invested in the area’s infrastructure.
City officials said they are on track to pay the bond off in 15 years. Bonds can be issued up to $12.5 million.
Current contributors to the TIF include Costco, Walk-Ons and Wendy’s. More are expected as the development continues to grow.
The money will go toward infrastructure in the Renaissance Phase III area.
In December 2020 the area eligible for TIF money was expanded to include the 9 acres across the street from the Costco known as Renaissance Phase IV that currently includes a fuel center, Wendy's and the site of the future Chick-fil-A.
An interlocal agreement between Madison County and Ridgeland approved at the April 20 meeting of the Ridgeland Mayor and Board of Aldermen means the county will divert tax money to the TIF.
The county’s contributions will exclude ad valorem taxes collected on the Costco building anchoring the development. Bonds can be issued up to $12.5 million.
City officials approved issuing $7.8 million in Tax Increment Financing (TIF) bonds from the Rennaissance Phase III TIF in June.
The Renaissance Phase III TIF was approved in December 2016 by the board with Butler Snow as bond counsel, Jerry Mills as counsel to the city and Government Consultants Inc., as the municipal advisors.