During its latest meeting, the Chelsea City Council approved the largest incentive package in the city’s history to support the development of Chelsea Plaza. The major retail project will span 14 acres and include 16 retail and commercial units.
According to ABC 33/40, the incentive agreement allows the developer to collect three cents of the city’s five-cent sales tax on purchases at the development. The city will retain the remaining two cents, one designated for education and the other for the city’s general fund. Chelsea Mayor Tony Picklesimer called Chelsea Plaza “the largest single development in the history of our city.”
The incentive will last for 20 years or until $20 million is paid out, whichever comes first. The deal marks a new precedent for the city, which had previously never agreed to more than a two-cent sales tax incentive.
City officials expressed confidence in the long-term benefits. Financial projections estimate that if Chelsea Plaza meets 100% of its estimated sales, the agreement would conclude in 11 years, generating over $49 million for the city. If the development reaches 80% of its projected sales, the city is still expected to earn around $35 million over 13.5 years.
No public comments were made during the hearing held before the unanimous vote.
Construction on Chelsea Plaza is expected to begin before the end of 2025, with full completion projected by 2028.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at sherri@yellowhammernews.com.
