JACKSONVILLE– The Jacksonville City Council approved a hotel incentive package Monday for a proposed 69-room Cobblestone Mainstreet Hotel. Plans place the development on Jacksonville State University property.

The council approved Resolution R-2330-26 and authorized Mayor Mark Jones to execute an agreement with JSU Hotel Group LLC. No one spoke during a required public hearing before the votes.

In addition, council members authorized an application seeking up to $500,000 for improvements along the Chief Ladiga Trail.

Hotel Package Includes Permit and Tax Incentives

According to the Calhoun Journal, the package includes an estimated $75,020 abatement of city building-permit fees. It also provides an estimated $375,000 reimbursement of city sales and use taxes on construction materials.

Additionally, the agreement estimates $535,181 in lodging-tax reimbursements during the hotel’s first five years. Another $428,145 could be reimbursed during years six through 10, bringing estimated lodging-tax reimbursements to $963,326.

However, the agreement caps the city’s total incentives at 20% of the project’s total cost. The council approved the incentives under Alabama’s Amendment 772 economic-development process.

Council Discusses Taxpayer Protections

During the meeting, Councilman Andy Green said he supports the development and expects it to succeed. However, he questioned whether the agreement provides enough financial security if the project fails.

ABC 33/40 reported that Section 4.3 contains clawback provisions. The agreement also requires the developer to obtain a certificate of occupancy by March 1, 2028.

Green said the agreement does not explicitly secure repayment through a bond or lien. Therefore, he suggested collecting certain fees initially and refunding them after a developer meets required benchmarks.

Green emphasized that his questions were about future safeguards, not opposition to this project.

“We have that responsibility to protect the taxpayer money,” Green said during the council’s official meeting video.

Jacksonville Seeks Chief Ladiga Trail Funding

Meanwhile, the council approved an application to the Alabama Department of Economic and Community Affairs for an FY 2027 Appalachian Regional Commission Area Development Grant.

Jacksonville will seek up to $500,000 and commit a 50% local match, up to $500,000, if the grant is awarded. Mayor Jones may execute the documents required for the application.

ADECA says the current grant cycle supports infrastructure and projects that leverage natural and cultural assets. Applications are due by noon on Sept. 25.

In related action, the council approved an Alabama Power right-of-way easement for Chief Ladiga Trail lighting. The city has not publicly detailed the full scope or timetable for the proposed trail improvements.