The decision whether to launch a new tax incentive program aimed at attracting and developing businesses that contribute to improving year-round economic activity in Gulf Shores' Waterway Village District and the Beach Walking District was postponed to make time for public input.

The city introduced the program at Gulf Shores City Council's July 6 work session, which drew mixed concerns from residents and local business owners.

As proposed, a rebate incentive will offer eligible developers up to 50% of new sales tax, new property tax and new lodging taxes for up to 20 years.

A memo by Blake Phelps, the director of economic development and public affairs of the City of Gulf Shores, states "rebates are strictly performance-based: the city will issue rebates only after the project is completed, fully operational and generates new tax revenue for the city."

The intent of the programs is to "strengthen the city's walkability, expand year-round economic activity in the area and elevate the city's dining, retail, lodging, entertainment and mixed-use offerings," Phelps said in the work session.

"This is not just offering any kind of entitlement program where if you invest X number of dollars, you're guaranteed to receive X, Y, amount of benefit back to you … This is going to be on a case-by-case basis, and it's truly meant to be targeted to the uses and areas that we want to see these uses be developed in," he said.

The types of businesses the city is looking to tailor the tax programs to include developments such as: high-end or destination restaurants; mixed-use developments, which are projects that have multi-complimentary uses within a single entity; entertainment-focused businesses, like Top Golf; high-end and/or boutique hotels; and boutique/specialty retail stores, which will solely be for the Waterway area.

Developers interested in the program will be required to apply to a review committee where they will be "evaluated using a transparent scoring system," according to the memo by Phelps.

The scoring system will be based on factors including "capital investment level, job creation (high wage, year-round positions), public improvements (parking, plazas, landscaping, sidewalks), architectural quality, local ownership or local operator involvement, sustainability or resilience features, year-round operation and attractiveness to full and part-time residents, as well as tourists or visitors."

"We want something that can operate year round and support visitors but also support locals and those of us who live here year round," Phelps said.

"Higher-scoring projects may receive higher rebate percentages or longer durations. Actual terms depend on project scale, public benefits and alignment with city goals," the memo says.

The application will then go through a staff review committee and a finance committee before it is approved and sent to development negotiations with the city.

Council will revisit the tax incentive program July 27 at its next regular city council meeting.

Before that, the city will hold a public input session July 21 in Council Chambers at 10 a.m. to allow the community to offer feedback and learn more about the program.

Mayor Robert Craft received a "significant amount of interest from local business owners" about the program introduced last week, Phelps said, leading to council's vote to defer action on its launch.

"... We feel like we need more information. We feel like you need more information," Craft said during the July 6 work session. "So, we have a good opportunity to sit in here and have a dialogue and make sure that as we move forward, it's clear what we're doing and why we're doing this."

The proposed program comes as the city is looking to update its long-term development, transportation and land use strategy. An open house and public input session was held at the new Gulf Shores High School July 14 that served as the launch of a 16-month process to develop a comprehensive plan through 2045.